I have been made redundant. What payment am I entitled to?

If you are an employee with at least two years' service in your job, you are entitled to a statutory redundancy payment.

The law sets a minimum payment. This is normally paid by your employer, but the State will pay if your employer has gone bust.

Of course, many better employers pay more than the minimum compensation when making someone's job redundant. Sometimes there will be a redundancy scheme in your contract of employment. In other cases, your union will be able to negotiate more than the minimum and sometimes employers want to soften the blow, especially if they are looking for volunteers for redundancy.

But if you are only getting the legal minimum, this is what you will get:

  • half a week's pay for every year of service while you were under 22 years old;
  • one week's pay for every year of service between 22 and 40; and
  • one and a half week's pay for every year of service over 41.

A maximum of 20 years' service is taken into account and there is a limit to a week's pay for statutory redundancy purposes, which in 2016 was set at £479. This means that the maximum payment under the statutory scheme is currently £14,370 (i.e. 30 weeks at £479).

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.