UK businesses are sadly facing the harsh reality of financial viability in a pandemic landscape where government support stops at the close of October. Corporates spanning airlines, automotive, banks, retail, hospitality and utilities have already taken...
If you are facing redundancy and you want to know if the settlement you have been given is fair, then speak to one of our qualified redundancy solicitors for expert advice. We understand that redundancy can be stressful and difficult to deal with; our lawyers can help you ascertain whether you are getting the settlement you are entitled to, and if not, help you to negotiate a better one.
How much redundancy am I entitled to?
How much redundancy you will get will depend on several factors such as:
- Your age
- The number of years you have worked for your employment
- Your earnings before tax (also known as gross pay)
- Whether you have redundancy rights
- Whether or not your contract states you are entitled to enhanced redundancy payments
If your organisation does not have enhanced redundancy payments and you have worked for your employer for two years or more, you should qualify for statutory redundancy payments. These payments are worked out to a set calculation, based on your age and how long you have worked for the company.
- If you are aged under 22, your employer only has to give you half a week’s pay for each full year you’ve worked for them
- If you are aged between 22-40, your employer must give you one week's pay for each full year you have worked after you reached the age of 22. If you worked for your employer when you were younger than 22, you will only receive half a week's pay for each full year of that time.
- If you are aged 41 or over, you will be entitled to 1.5 week’s pay for each full year you have worked after you reached this age bracket. If you worked for your employer when you were aged between 22-40, you will only get one week’s pay for each of those full years of service.
These ‘weeks’ of pay are paid at your current salary rate but are capped at a maximum of £525 per week (in 2019/2020) or £500 in Northern Ireland.
Statutory redundancy payments have a cap of £15,750, regardless of your length of service or your salary level. You will only receive more than this if your contract of employment includes enhanced redundancy rates. The first £30,000 of any non-contractual redundancy payments is tax-free, then anything over the £30,000 will be charged at the OT tax rate. If you need redundancy advice, contact our professional employment law solicitors today on 0161 696 6170.