What is Statutory Redundancy Pay?

What is Statutory Redundancy Pay?

An intro to statutory redundancy pay and how much you need pay.

By Marcia Smith

What you're entitled to

If you’ve been working for the same employer for 2 years or more you’ll be entitled to statutory redundancy pay. The exceptions to this, where you will not be entitled, are:

  • If your employer offers you alternative work that you turn down without a good enough reason
  • You were being dismissed on grounds of misconduct
  • Your employer was part of your immediate family
  • You’re an apprentice who isn’t an employee at the end of your training
  • Members of the armed forces or the police service
  • Former registered dock workers or merchant seamen, as you’re covered by other arrangements.
  • If you’ve been laid off temporarily without pay, or less than 50% of your pay, you may still be able to claim statutory redundancy.


    How much do you get?

    For every complete year you were employed, but younger than 22 years old, you will receive half a week’s pay per year. For every year you were employed aged between 22 and 41 you’ll get 1 full week’s pay per year. For every year employed when you were aged 41 or above you will receive 1 and a half week’s salary per year.

    Tax is not payable on redundancy pay under £30,000, but income tax and national insurance contributions will be deducted by your employer from any holiday pay or wages they may still owe you.

    To work out how much redundancy pay you’re entitled to use this free calculator.

     

      Subscribe for Free Content

    Click here to get killer business content sent straight to your inbox

    Subscribe to The Knowledge Hub

    Join over 60,000 business owners. Get the latest advice, tips and expert opinion delivered to your inbox every month.