I’ve worked at the same company for many years but
I’ve been told I’m being made redundant. What redundancy pay am I entitled
If you’re being made redundant, there are two types of redundancy pay you could
‘Statutory’ redundancy pay is the minimum that the law says you’re entitled to, or
‘contractual’ redundancy pay, which is extra money your contract says you can get
on top of the statutory amount.
You’re usually only entitled to statutory redundancy pay if you’ve been an employee
for at least two years.
It’s worth asking your employer or checking your contract to
see if you’re entitled to more than the statutory redundancy rules allow.
Statutory redundancy pay is based on age, weekly pay and number of years in the
job, up to a maximum of £538 a week.
The Citizens Advice and Gov.uk websites
have calculators to help work out how much you’ll get.
For example if you’re aged 41
and over, you’ll get 1.5 week’s statutory redundancy pay for each full year you’ve
worked, up to a maximum of 20 years’ service.
If your employer offers a suitable alternative job, but you refuse to take it without
good reasons, they can refuse to pay your redundancy.
You won’t get statutory
redundancy pay if you’ve been employed for less than two years, are self-employed
or are in certain jobs like the armed forces or police (though you may be entitled to
If you’ve been furloughed, the law now says that your redundancy pay should be
worked out using your usual wages, even if you were paid 80% while you were
However, statutory redundancy pay still limits a week’s pay to £538.
If your employer has told you that your redundancy pay will be based on your
furlough rate of pay, you could explain to the employer that isn’t what the Gov.uk
website says about redundancy pay, or contact your nearest Citizens Advice.
Free, confidential advice and help is available from South Lakes Citizens
Advice on any aspect of debt, consumer problems, benefits, housing,
employment or any other problems.
South Lakes Citizens Advice is still delivering a service – Telephone and Digital
How to access:
Call 015394 46464 – this is being staffed from 9:30 – 2pm
Adviceline: 03444 111 444
email advice via our submission page on our website
Help to Claim (Universal Support): 0800 144 8 444