You can pay later than this if you both agree another date in writing. If you do not pay an employee on time, they might be able to make a claim to an employment tribunal. If making redundancy payments puts your organisation at risk, you can ask the Redundancy Payments Service RPS for financial help.
If you're insolvent you can get RPS to make your redundancy payments and recover the debt from your assets. Find out how to get financial help from the Redundancy Payments Service. If you like, you can tell us more about what was useful on this page. Please do not include any personal details, for example email address or phone number. If you have a question about your individual circumstances, call our helpline on We cannot respond to questions sent through this form.
Step 1: Check if redundancies are necessary Step 2: Follow the right process Step 3: Tell employees Step 4: Hold redundancy consultations Step 5: Select employees for redundancy Step 6: Work out redundancy pay Step 7: Give redundancy notice Step 8: Offer an appeals process Step 9: Offer alternative employment Step Support your staff and plan for the future.
Step 6: Work out redundancy pay You must pay at least the legal minimum 'statutory' amount of redundancy pay to your employees who have worked for you for at least 2 full years. The rate can change each year. The number of weeks' redundancy pay you should receive is calculated up until a set 'relevant date'. It's important to know when this date is so you can work out how many years service you have. In most cases, this is the date when your employment ends the last day of your notice period.
In some situations this will be different:. There are limits to how much redundancy pay you can get. You can only get it for up to 20 years of work. This means, for example, that if you've worked for your employer for 22 years you'll only get redundancy pay for 20 of those years. More information on whether elements of the payment, such as pay in lieu of notice, is taxable is available from HM Revenue and Customs.
Pay in lieu of notice is money paid to you by your employer as an alternative to being given your full notice. If they can't pay because they're insolvent, you might be able to get the money from the government. If you've been made redundant, your employer will normally pay you either on the last day of your notice period, shortly afterwards, or on your next pay day.
Your employer should give you a written statement showing how any payment has been worked out. If you have doubts about the way your employer has calculated your statutory redundancy pay you can call the Redundancy Payments Freephone Helpline on If your employer does not give you statutory redundancy pay when you are entitled to it, you should write to them asking for payment.
If you have an employee representative, such as a trade union official, they may be able to help. You need to make a claim to the tribunal within six months, or you may lose the right to a payment. Careers webchat is available from 9. Outside of these hours, or if all advisers are busy, you can ask questions online.
Chat with a careers adviser in Northern Ireland. Join a union. How is my redundancy pay calculated? This is calculated as follows: half a week's pay for each year of employment up to the age of 22; one week's pay for each year of employment between the ages of 22 and 40; one and a half week's pay for each year of employment over the age of 41; a maximum of 20 years' employment can be taken into account; and there is a statutory maximum limit to a week's pay.
Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action. Previous Next. Can my employer make me redundant? I have been made redundant. What payment am I entitled to? I have been told I will be made redundant.
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