When you lose your job due to redundancy, it can be a stressful and uncertain time. In addition to the emotional and financial challenges, many people wonder if they are entitled to statutory redundancy pay. If you find yourself in this situation, it's essential to understand your rights and how to claim this pay. At employmentlawuk, we are committed to providing free advice and guidance on employment law matters, including redundancy pay.

In this article, we will break down what statutory redundancy pay is, who is eligible for it, how it's calculated, and the process for making a claim. We will also explore how you can access expert support and guidance during this process, including free templates and coaching.

What Is Statutory Redundancy Pay?

Statutory redundancy pay is a payment provided to employees who are made redundant. This payment is a legal entitlement that helps to ease the financial burden during a challenging transition. The amount of redundancy pay you are entitled to depends on several factors, including your age, length of service, and weekly salary.

Statutory redundancy pay is different from a severance package or any other employer-provided benefits. It is a minimum payment set by the UK government and applies when the redundancy is not your fault.

Eligibility for Statutory Redundancy Pay

Not everyone is entitled to statutory redundancy pay. To qualify, you must meet the following criteria:

1. Minimum Service Requirement: You must have been employed by the same employer for at least two continuous years. Shorter employment periods do not qualify for statutory redundancy pay.

2. Reason for Redundancy: Redundancy pay is only available if your job is genuinely redundant. This means that your employer has decided to eliminate your role or reduce the number of employees, not because of your personal performance or conduct.

3. Age Requirements: Statutory redundancy pay is available to employees of any age. However, the amount of redundancy pay varies depending on your age.

4. Working Hours: Both full-time and part-time employees are entitled to redundancy pay if they meet the above criteria.

5. Employment Status: You must be an employee (not a contractor or self-employed) to be eligible for redundancy pay.

If you’re unsure about your eligibility, it’s best to consult with an employment law expert, such as those at employmentlawuk, who can provide tailored advice to your situation.

How Is Statutory Redundancy Pay Calculated?

The amount of statutory redundancy pay you are entitled to is calculated based on three factors:

1. Your Age:

   • If you are under 22, you are entitled to half a week’s salary for each full year you’ve been employed.

   • If you are aged 22 to 41, you are entitled to one week’s salary for each full year you’ve been employed.

   • If you are aged 41 or older, you are entitled to one and a half week’s salary for each full year you’ve been employed.

2. Length of Service: Statutory redundancy pay is based on the number of years you’ve worked for your employer. Only the years of service you have completed with the employer making you redundant are counted. The maximum number of years used to calculate redundancy pay is 20 years.

3. Weekly Salary: The amount you earn per week is also considered, with a maximum weekly salary cap of £643 (as of 2025). If you earn more than this amount, the statutory redundancy pay will be calculated using the cap figure.

Example Calculation

Let’s look at an example:

• Age: 45 years old

• Length of Service: 5 years

• Weekly Salary: £500

In this case, the redundancy pay would be calculated as follows:

• 1.5 weeks’ salary for each year over 41 years (age): 1.5 * 5 = 7.5 weeks

• 7.5 weeks * £500 = £3750 in statutory redundancy pay.

Important Note:

Statutory redundancy pay is capped, meaning even if you are older or have worked for many years, the weekly salary is limited to the maximum amount for calculation purposes.

How to Claim Statutory Redundancy Pay

If you meet the eligibility criteria and your employer has made your job redundant, you are entitled to claim statutory redundancy pay. The process is relatively straightforward, but it’s essential to follow the correct steps:

1. Confirm Redundancy:

Ensure that the reason for the redundancy is genuine. If the redundancy is not legitimate, you may have grounds to challenge your dismissal. In this case, seeking legal advice is crucial.

2. Request Redundancy Pay:

Speak to your employer and formally request your redundancy pay. You can do this in writing. Employers are required by law to pay statutory redundancy pay within 14 days of the redundancy date.

3. Fill Out the Necessary Forms:

If your employer refuses to pay or disputes your entitlement, you may need to fill out forms for an Employment Tribunal. In some cases, you can approach HM Revenue and Customs (HMRC) for help, especially if your employer has gone out of business.

4. Seek Legal Assistance:

If you are facing complications with your claim or need help navigating the process, employmentlawuk can offer you free templates, coaching, and advice on how to claim your redundancy pay. We also offer referrals to no win, no fee employment solicitors who can represent you in an Employment Tribunal, if necessary.

What If I Don’t Receive Statutory Redundancy Pay?

If your employer fails to pay statutory redundancy pay or you believe they have not calculated it correctly, you can take action:

1. Contact Your Employer: Start by speaking with your employer and addressing the issue directly. Sometimes misunderstandings can be resolved without further steps.

2. Employment Tribunal: If discussions with your employer don’t resolve the issue, you may need to bring a claim before an Employment Tribunal. This must be done within three months of your redundancy date.

3. Legal Support: If you are uncertain about the process or need support, employmentlawuk can help you through the steps and even refer you to legal representation.

Conclusion: What’s Next for You?

Understanding statutory redundancy pay is crucial for anyone facing redundancy. It’s important to know your rights and ensure that you are being treated fairly. Whether you’re entitled to statutory redundancy pay, how much you’re entitled to, and how to claim it can be complex. However, you don’t have to go through this process alone.

At employmentlawuk, we are dedicated to providing free legal advice, templates, and coaching to help you navigate employment law issues like redundancy. We are here to support you in ensuring that you receive the pay and compensation you are entitled to.

If you are facing redundancy or unsure about your rights, don't hesitate to reach out to us for assistance. Let us help you take the next step with confidence, knowing you have the support you need to make the most of your situation.