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What should I get as redundancy payment?

Find out the rules that apply to redundancy pay.

To work out what redundancy payment you are entitled to, you should look at your contract of employment. If your contract doesn’t mention a payment or you don’t have a contract, you may still be legally entitled to redundancy pay.

You must have worked for at least two years with your employer whilst you were over the age of 18 to qualify for redundancy pay. However, this rule does not apply if you think that your employer has discriminated against you in the way that you were selected for redundancy (for example if you were selected on the basis of your race, sex or because of any disability you might have).

The amount of the redundancy payment depends on how long you have been employed, your age, and your weekly pay before tax.

  • For each year of continuous employment between the ages of 18 and 21 you will get half a week’s pay.
  • For each year of continuous employment between the ages of 22 and 40 you will get one week’s pay.
  • For each year of continuous employment between the ages of 41 and 65 you will receive one and a half weeks’ pay.

However, there is an upper limit on the amount of weekly pay you can receive. In addition, any period of continuous employment over 20 years will be disregarded and for every month you are over the age of 64 you will lose 1/12 of your entitlement.

If your employer does not offer you a redundancy payment or if you dispute the amount, we recommend that you speak to an employment adviser at Community Legal Advice on 0845 345 4 345 for specialist advice. Telephone specialist advice is only available if you qualify for legal aid.

Alternatively, you can be matched to a specialist employment solicitor by Contact Law.

This content is subject to Crown Copyright

Source:
Community Legal Advice
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