Redundancy payment

Employers are required to pay statutory redundancy pay to employees who have at least 2 years continuous service. Some employers pay enhanced redundancy terms but, for those who do not the Statutory award applies, which provides for:

  • 0.5 weeks pay for each complete year of employment where during the year the employee is under 22years old;
  • 1 weeks pay for each complete year of employment where the employee is between 22 and 41; and
  • 1.5 weeks' pay for each complete year of employment where the employee is over 41.

In calculating statutory redundancy pay, weekly pay is capped, currently at £330.