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Is the redundancy settlement fair?
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.
Understanding your rights in a redundancy settlement
Navigating a redundancy settlement can be challenging, especially if you're unsure about your legal rights. As an employee, you are entitled to a fair process that complies with employment law. A redundancy settlement solicitor can evaluate whether your redundancy has followed the correct legal procedures, including proper consultation, selection criteria, and consideration of suitable alternative employment.
When handled correctly, redundancy settlements can offer employees both financial compensation and closure. However, without experienced legal representation, there is a risk of accepting less than what you’re legally entitled to. At Stephensons, our solicitors provide clear, practical advice tailored to your individual circumstances to ensure you are treated fairly and receive a settlement that reflects your rights and contributions.
Key considerations when reviewing a redundancy settlement
Every redundancy settlement is unique, but there are a few critical elements that should always be reviewed:
- Whether the settlement reflects your full contractual and statutory entitlements
- If the proposed payment covers notice pay, unpaid holiday, bonus schemes and pension contributions
- Whether a legally binding settlement agreement has been proposed and reviewed by a qualified solicitor
- Any restrictive covenants that may limit your future employment opportunities
It is also important to explore any potential claims you might have, such as discrimination or unfair dismissal, before agreeing to a settlement. An experienced redundancy settlement solicitor can help you assess these factors and negotiate on your behalf if needed.
Why choose Stephensons for redundancy settlement advice?
Stephensons is a multi-award-winning national law firm with a wealth of experience supporting employees through redundancy and employment disputes. Our employment law team includes qualified redundancy settlement solicitors who are ranked highly in respected legal directories such as The Legal 500 and Chambers and Partners. We are recognised for our approachable, effective and client-focused legal support.
Here’s why clients choose Stephensons for redundancy settlement matters:
- Independently accredited by the Law Society in Employment Law
- Flexible appointments available, including telephone and video consultations
- Transparent pricing and clear advice tailored to your needs
- Excellent client satisfaction ratings and testimonials
- Dedicated teams who understand the emotional and financial impact of redundancy
With deep expertise and a client-first approach, Stephensons is committed to helping individuals secure fair and favourable redundancy settlements.
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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