Question 1

Am I entitled to statutory redundancy pay?

Accepted Answer

You qualify for statutory redundancy pay if you are an employee (not self-employed or a worker), you have been continuously employed by the same employer for at least 2 years, and you have been made redundant. Employees under 2 years' continuous service have no statutory redundancy entitlement, though your employer may offer an enhanced scheme.

Question 2

How is statutory redundancy pay calculated?

Accepted Answer

Redundancy pay is based on your age, length of service, and weekly gross pay. You receive: 1.5 weeks' pay for each full year of service when you were 41 or older; 1 week's pay for each year when you were aged 22-40; and half a week's pay for each year under age 22. Service is capped at 20 years and weekly pay is capped at £751 for 2026/27. The maximum statutory payment is therefore £22,530.

Question 3

Is redundancy pay taxable?

Accepted Answer

The first £30,000 of a genuine redundancy payment (including statutory redundancy pay) is tax-free. Amounts above £30,000 are taxed as income. Statutory redundancy pay alone is almost always below £30,000, so it is usually entirely tax-free. Payments in lieu of notice (PILON), holiday pay, and bonuses are taxed normally and do not benefit from the £30,000 exemption.

Question 4

Does my employer have to pay more than the statutory amount?

Accepted Answer

No. The statutory amount is the legal minimum. However, many employers offer enhanced redundancy schemes that pay more, for example no cap on weekly pay, more weeks per year of service, or a higher multiplier. Check your employment contract and any company policies. Enhanced payments above the statutory amount are still usually tax-free up to the £30,000 limit.

Question 5

What if my employer refuses to pay redundancy?

Accepted Answer

If your employer is insolvent and cannot pay, you can claim from the National Insurance Fund via the Insolvency Service and will receive the statutory amount from the government. If your employer simply refuses to pay despite being solvent, you can make a claim to an Employment Tribunal. The deadline for a tribunal claim is typically 3 months less one day from your last day of employment.

Question 6

Does part-time work affect redundancy pay?

Accepted Answer

Part-time employees have the same redundancy rights as full-time employees. Weekly pay for redundancy purposes is based on a week's actual gross pay. If pay varies (for example shift work or overtime), the average weekly earnings over the 12 weeks before the redundancy notice are used.

Age band	Years	Multiplier	Weeks' pay	Amount
Aged 22 to 40	7	1x	7.0	£3,850
Total			7.0 weeks	£3,850

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