Facing redundancy can be a difficult and stressful experience, but knowing your rights can help alleviate some of the uncertainty. One of the most important rights for employees during redundancy is statutory redundancy pay. If you're facing the possibility of redundancy, understanding what statutory redundancy pay is, how much you're entitled to, and the process for claiming it is crucial. In this article, we will break down everything you need to know about statutory redundancy pay, especially as it pertains to employees in the UK.

What Is Statutory Redundancy Pay?

Statutory redundancy pay is the minimum amount an employer is legally required to pay to an employee who is made redundant. The aim is to provide financial support to employees who lose their job through no fault of their own. This pay is separate from any contractual redundancy arrangements that might exist in an employee’s contract.

Who Is Entitled to Statutory Redundancy Pay?

To be eligible for statutory redundancy pay, certain criteria must be met:

• Length of service: You need to have been employed by the same employer for at least two years.

• Redundancy situation: The redundancy must be genuine. If an employee’s job becomes unnecessary or the business closes, it is considered a redundancy.

• Age requirement: Employees aged 18 or older are eligible, and the amount of redundancy pay varies according to the employee’s age and length of service.

How Is Statutory Redundancy Pay Calculated?

The amount of statutory redundancy pay depends on several factors, including your age and how long you have worked for your employer. Here’s how the calculation works:

1. For each full year you were under 22: You are entitled to half a week’s salary.

2. For each full year you were 22 or older but under 41: You are entitled to one week’s salary.

3. For each full year you were 41 or older: You are entitled to one and a half week’s salary.

There is a maximum weekly limit on the salary that can be used to calculate redundancy pay. For example, the limit is £643 per week (as of 2025), meaning that if your weekly pay exceeds this amount, your redundancy pay will be calculated based on £643.

The Process of Claiming Statutory Redundancy Pay

The process for claiming redundancy pay can vary depending on the situation, but here are the general steps:

1. Employer notification: Your employer should notify you in writing that you are being made redundant and outline the redundancy pay you are entitled to.

2. Redundancy consultation: Your employer must consult with you regarding the redundancy. This is especially important if you have been employed for over two years.

3. Calculation: The employer will calculate how much redundancy pay you are entitled to based on your age, length of service, and weekly salary.

4. Payment: The employer should pay your statutory redundancy pay once the redundancy has been confirmed.

If your employer refuses or fails to provide redundancy pay, you may need to take legal action, and this is where EmploymentLawUK can support you with free legal advice.

How EmploymentLawUK Can Help

At EmploymentLawUK, our goal is to offer guidance, support, and if necessary, pro bono representation to individuals experiencing redundancy. Whether you need help calculating your statutory redundancy pay or dealing with an employer who refuses to pay, we are here to help. Our clinic, run by a non-practising barrister, focuses on providing clear, cost-free assistance for all employment law matters.

We also provide templates and coaching to help you manage your employment-related issues effectively. Our ultimate aim is to empower individuals like you with the information and support needed to handle redundancy matters confidently and assertively.

What If You’re Not Eligible for Statutory Redundancy Pay?

There are some circumstances where an employee might not be entitled to statutory redundancy pay. This can include situations where an employee has not been employed for at least two years or where they are dismissed for gross misconduct. However, it is always worth seeking advice, as there may be other options available, such as contractual redundancy pay or negotiating a settlement agreement.

The Implications of Redundancy

While redundancy can feel overwhelming, it's important to understand your rights and options. Statutory redundancy pay is designed to provide some financial cushioning during the transition to your next job. However, redundancy often signals a larger shift in the workforce, and many businesses may be undergoing restructuring or financial changes. If you are faced with redundancy, it's a good idea to evaluate your future options carefully and seek professional advice on how best to proceed.

Conclusion: Empower Yourself with Knowledge

Statutory redundancy pay is a vital part of the employment rights landscape in the UK. Being informed about your rights, how redundancy pay is calculated, and the process for claiming it can help reduce the stress of this challenging time. If you find yourself in the unfortunate position of redundancy, remember that you have resources available to ensure you receive the pay you are entitled to. EmploymentLawUK is here to provide free, professional advice to support you throughout the process.

Ultimately, staying informed and seeking the right help can make a significant difference in navigating redundancy effectively and securing a brighter future.

By understanding statutory redundancy pay and seeking guidance where needed, you can take proactive steps in protecting your rights and ensure that your financial well-being is maintained as you move forward in your career.