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If you are facing redundancy at work, it is important to know what you are entitled to. Your redundancy pay entitlement will depend on a number of factors, which include:
If I’m made redundant what am I entitled to?
We always recommend checking your employment contract to see if you are entitled to enhanced redundancy payments. If you are not entitled to enhanced redundancy payments, then you will be entitled to statutory redundancy pay. How this is worked out is based on your length of service and your age, these payments are currently capped at £15,750.
An independent public body called ACAS, who offer impartial advice to both employee and employers, state that redundancy pay should be worked out on the following basis:
For more information on ACAS redundancy pay, go to the ACAS website.
Redundancy can be a stressful and uncertain time, but understanding your legal rights is crucial to protecting your financial future. Whether you are facing compulsory or voluntary redundancy, knowing your exact redundancy entitlement can help you make informed decisions. Beyond statutory redundancy pay, some employees may also benefit from additional contractual rights or terms agreed in collective agreements. It is advisable to explore all documentation provided by your employer and seek legal advice to ensure that you receive everything you are owed under both statutory and contractual law.
Certain factors may also affect your redundancy pay entitlement, such as part-time employment status, fixed-term contracts or periods of unpaid leave. If there is any dispute or concern over the redundancy process, you may be eligible to make a claim for unfair dismissal or challenge the redundancy on discriminatory grounds.
Many employees assume that they are automatically entitled to a redundancy payment, which isn’t always the case. For instance, if you have worked for your employer for less than two continuous years, you may not qualify for statutory redundancy pay. Likewise, if your employer offers you suitable alternative employment which you unreasonably refuse, you may lose your entitlement.
It’s also important to differentiate between dismissal and redundancy, as the processes and entitlements are distinct. If your role is being made redundant but the business still needs staff for similar work, this could be a sign of an unfair redundancy process. Understanding the legal definition of redundancy and how it applies to your specific situation is critical for ensuring you receive the correct redundancy pay entitlement.
At Stephensons, we pride ourselves on delivering clear, practical legal support to individuals navigating redundancy. Our employment law solicitors are experienced in acting for employees across a wide range of industries and job roles, ensuring that every client receives tailored advice specific to their circumstances.
Whether you are unsure about your redundancy entitlement or believe you have been treated unfairly, our expert team at Stephensons can provide the support and guidance you need to protect your rights and financial security.
If you need legal advice on whether you are receiving a fair redundancy package or if you think your redundancy was unfair, we recommend completing our online enquiry form - by completing the form as fully as possible, it will allow us to assess your case much more efficiently to tell you whether we can assist and what funding option we can recommend.
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