So Your Job is Ending - What Pay do You Get?

So Your Job is Ending - What Pay do You Get?

Your employer's obligations for payments when employment ends.

By Marcia Smith

Should my employer give me the same severance as my peers?

Employers are legally required to treat all employees fairly in cases of redundancy and there are also statutory minimum levels of redundancy pay (also known as severance). However, this does not mean that you will get the same redundancy pay as your peers or other employees.

Your statutory minimum redundancy pay is calculated based on your wage. You’re entitled to one full week’s pay for every year you’ve worked for your employer between the ages of 22 and 40. For years worked below the age of 22 you get 0.5 weeks’ pay, and for complete years over the age of 40 you get 1.5 weeks’ pay, up to a maximum of twenty years’ employment.

Your actual redundancy pay could be higher, depending on your terms of employment.

Am I entitled to full pay during my notice period or gardening leave?

Yes. Your terms and conditions of employment continue to apply until your contract ends.

During your notice period you continue to be entitled to your full pay along with sick leave, holidays and maternity pay, just as you were throughout your employment.

Your employer may choose to ask you to stay at home during this period, and this is known as gardening leave. However, they must continue to pay you normally.

If your contract of employment allows it, your employer might offer to pay your final salary early and terminate your contract immediately. However, they can only do this with your agreement and you should be paid no less than you would have received had you worked your notice period in full.