July 17th, 2014
Basic redundancy eligibility rules.
How much redundancy pay you get depends on your wage, how long you have been employed by the family and your age. When your employer gives you your redundancy payment they must also give you a statement showing how it was calculated.
You’ll normally be entitled to statutory redundancy pay if you’re an employee you’ve been working for your current employer continuously for 2 years or more.
• half a week’s pay for each full year you were under 22
• 1 week’s pay for each full year you were 22 or older, but under 41
• 1 and half week’s pay for each full year you were 41 or older
You’re not entitled to statutory redundancy pay if:
• Your employer offers to keep you on
• Your employer offers you suitable alternative work suitable alternative work i.e.
(how similar the work is to your current job, the terms of the job being offered, your skills; abilities and circumstances in relation to the job; the pay (including benefits), status, hours and location) which you refuse without good reason
• Being dismissed for misconduct doesn’t count as redundancy, so you wouldn’t get redundancy pay if this happened
Statutory redundancy pay
Redundancy pay is calculated at a current maximum of £470 gross per week, therefore if your earnings are less than £470 per week, for example £350 gross per week; the calculation is based on £350 x the eligible number of weeks. it is non taxable below £30, 000!
You must be given a notice period before your employment ends.
The statutory redundancy notice periods are:
• at least 1 week’s notice if employed between 1 month and 2 years
• 1 week’s notice for each year if employed between 2 and 12 years
• 12 weeks’ notice if employed for 12 years or more
Check your contract. Your employer may give you more than the statutory minimum, but you can’t be given less.
As well as statutory redundancy pay, your employer should either:
• pay you through your notice period
• pay you in lieu of notice depending on your circumstances
Payment in lieu of notice
Payment in lieu of notice is money paid to you by your employer as an alternative to being given your full notice.
This means that your contract can be ended without any notice.
You must get all of the basic pay you would have received during the notice period. You may get extras such as pension contributions or private health care insurance if they’re in your contract.
You have the right to a 4 week trial period for any alternative employment you’re offered.
The 4 week period could be extended if you need training. Any extension must be agreed in writing before the trial period starts.
Tell your employer during the trial period if you decide the new job isn’t suitable. This won’t affect your employment rights, including your right to statutory redundancy pay.
You’ll lose your right to claim statutory redundancy pay if you don’t give notice within the 4 week trial period.
Time off for job hunting
If you’ve been continuously employed for 2 years by the date your notice ends, you’re allowed a reasonable amount of time off to:
• look for another job
• arrange training to help you find another job
How long you can take will depend on your circumstances.
No matter how much time you take off each week to look for another job, your employer only has to pay you up to 40% of that week’s pay for it.
You work 5 days a week and you take 4 days off in total during the whole notice period – your employer only has to pay you for the first 2 days.