Questions and Answers - Advice on Redundancy
What are my rights to receive redundancy pay?
How much redundancy pay am I entitled to?
How will the redundancy pay be worked out?
The employer will base the redundancy payments on your earnings before tax, the number of years you have worked for your employer and your age. If you are under 22 you will generally receive half a weeks’ pay for each full year of service. If you are aged between 22 – 41, you will receive one weeks pay for each full year you worked after age 22. If you worked for your employer before reaching the age of 22, you will also receive half a weeks’ pay for each full year you worked before that. If you are aged 41 or over, your employee has to give you at least 1.5 weeks pay for each full year you worked after the age of 41. In addition, to one weeks pay for each full year you worked when aged between 22 and 41 and half a weeks’ pay for each year you worked before you became 22.
There is a redundancy pay calculator on the government website that can assist you.
When will I get paid the redundancy sum?
Are there limits on how much redundancy pay I may receive?
What if the employer refuses to pay redundancy, but I am entitled to?
How much notice does my employer need to give and do they need to pay me in the meantime?
Your employer will need to pay you until the formal end of your employment, so they will need to keep paying you until a time that a finish date is agreed with them. They need to give you sufficient time in advance as notice of their intention to make you redundant. How much time in fact depends upon how long you have worked for the employer. The following will apply;
If you have worked for them between 1 month and 2 years – it is 1-week notice
2 years to 12 years – a minimum of one weeks’ notice for each year you have worked
More than 12 years – the minimum notice period is 12 weeks