Understanding Redundancy Pay and Entitlements
As an employee, you may be wondering if you are entitled to redundancy pay. To clarify, there are two types: contractual and statutory.
Contractual redundancy pay applies when your fixed-term contract of two years or more isn’t renewed or if a series of shorter contracts add up to two years or more.
Statutory redundancy pay is legally required to be paid by your employer if you have been working continuously for two years and are made redundant due to a genuine need.
However, it is crucial to note that you may lose your right to redundancy pay if you refuse a job offer from your employer without a valid reason, or if you secure another job before your current one ends. In addition, some circumstances may disqualify you from receiving redundancy pay, such as being self-employed, a police officer, or a domestic worker.
In summary, as an employee, you may be entitled to redundancy pay under certain conditions. It’s essential to know your rights and eligibility to make informed decisions about your work situation.
Understanding Redundancy Pay
When you’re made redundant, your pay should be directly deposited into your bank account in the same way you received your wages. Moreover, your employer must provide you with a written explanation detailing how your redundancy payment was calculated.
However, there may be instances where your former employer fails to pay you the correct amount. In such cases, you should first write to them, providing evidence of what you’re entitled to receive.
If this does not resolve the problem, you can contact the Advisory, Conciliation and Arbitration Service (ACAS) for independent support in employment disputes. Acas will explore alternative resolutions to avoid going to a full tribunal.
But, if all else fails and you need to take legal action against your former employer, be aware that it can be both stressful and expensive. Before proceeding, it’s recommended that you consult with a local Citizens Advice professional.
How Much Redundancy Pay Will You Receive?
The amount of statutory redundancy pay you are entitled to is based on a few factors. These include your length of employment, the age at which you held the job each year, and your current salary.
For the year 2023/24, the maximum weekly payout is £643 in the UK (or £669 in Northern Ireland). Additionally, there is a maximum cap of £19,290 (or £20,070 in Northern Ireland) on the overall redundancy pay you can receive, regardless of your actual earnings.
It’s important to note that only complete years of service count towards your entitlement, and employment must be continuous. Furthermore, the maximum length of service considered for redundancy payment calculation is 20 years.
Gain Expert Support for Life-Changing Moments and Critical Decisions
When facing the possibility of redundancy, valuable knowledge is your greatest asset. Seeking expert advice from an experienced redundancy solicitor can provide clarity on your rights and options during life-changing milestones.
Negotiation is a crucial aspect of redundancy pay, which is influenced by numerous factors. Benefit from the expertise of professionals to navigate these important situations.
