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 2018 was set at £508. This means that the maximum payment under the statutory scheme is currently £15,240 (i.e. 30 weeks at £508).