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redundancy claims frequently asked questions

If you are made redundant, this does not mean you have been sacked. Redundancy is normally a situation that occurs through the actions of a business, and has nothing to do with you, personally, as an employee. You should be given time to find new employment (see the process further below) and also you should be paid redundancy pay. You are entitled to redundancy pay, but only if you’ve been working for your employer for at least two years. In terms of your length of service, according to GOV.UK, you’ll get:
  • Half a week’s pay for each full year you were under the age of 22
  • One week’s pay for each full year you were over the age of 22, but under the age of 41
  • One and a half week’s pay for each year that you were over the age of 41
Please note: length of service is capped at 20 years.
Your employer has a duty to pay you your redundancy payment on your final day of employment. By law you should receive a statement that details how your payment was calculated. You and your employer can also agree a payment date soon after your final day of employment, if you wish. If you feel that your employer has miscalculated your redundancy pay or hasn’t paid you correctly during your notice, you may wish to raise this with them. It may be an innocent oversight that can be corrected, or if they refuse to pay you what you’re owed, you may wish to take legal action.
Being made redundant doesn’t mean you leave straight away. You can still work your notice period. You may be offered “pay in lieu of notice”, where your employer pays you instead of you working your notice. You must work your normal hours during your notice period to receive your normal pay, and your redundancy pay when you leave.
Yes, you can. You’re entitled to a week and a half’s pay for each year of employment (working for your current employer) that you’ve worked over the age of 41. Many people in the older age brackets feel as though they are disregarded or discriminated against because of their age, and worry that they may be made redundant as a result. This is unlawful, and would be classed as age discrimination. Unfortunately, you may need to pay tax on your redundancy pay if your final payment exceeds £30,000.
Your redundancy pay will be calculated based on your length of service (see question above on 'How does redundancy work'). But, there are caps in place as detailed by GOV.UK. If you were made redundant on or after 6th April 2020, your weekly pay would be capped at £538. The maximum statutory redundancy pay you could get wold be £16,140. If you were made redundant before 6th April 2020, your payment amounts would be lower.
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