Statutory Redundancy Calculator

While some people will face a life of employment without interruption, there are many who will find their employment coming to an abrupt halt when an employer faces a difficult financial time and needs to cut costs or a company folds and must let its employees go. The name given to this abrupt end is redundancy.

For many, it can be a daunting experience causing much concern about finances and finding work. To help ease some of this worry the government put in place a scheme for statutory redundancy pay. While some employers will pay a greater amount to an employee than this scheme sets out, the framework for statutory redundancy ensures that every employee who is let go will receive a minimum form of financial compensation.

Here at Cavendish Law, we have a number of years’ experience in advising clients who are faced with redundancy to ensure they receive the correct amount of financial compensation. Where you are in doubt as to what you are entitled to you should seek advice from a solicitor who can provide expert guidance tailored to your circumstances.

100% Success Rate in Contentious Cases for both Employees & Employers

Contact our employment lawyers on 02071674800
or contact us online.

Can I be made redundant?

While some employers such as the police cannot make certain staff redundant, most employers have the right to make employees redundant. However, as an employee, you have a right to check that your redundancy has been fair.

If the business is in decline, your skills are no longer of use or there has been a takeover then your redundancy may be fair and genuine. However, if you are made redundant on discriminatory grounds, because of a dispute with your employer or for whistleblowing then the redundancy will be deemed unfair and not genuine.

Where a redundancy is found not to be fair or genuine then it can be challenged and another form of financial redress may be open to you. It is vital where there is doubt as to whether your redundancy is genuine that you seek advice from employment law specialists.

Am I eligible for statutory redundancy pay?

In order to receive statutory redundancy pay you must fulfil four criteria. First, as discussed above, your redundancy must be fair and genuine.

Secondly, you must have worked for the employer for a continuous period of two years. This can be a difficult timescale to confirm if there have been periods of sickness or a change in management.

Thirdly, you must not be self-employed, employed as a police officer, serve in the armed forces, work for the Crown, hold public office or be an employee of a foreign government if you are to receive statutory redundancy pay.

Finally, you must be classed as an employee, whether full or part time. To be classed as an employee you must be working under an employment contract and it is not necessary that you are paying tax as an employee. You could be classed as an employee if you are expected to work a minimum number of hours and you receive paid holiday.

It is vital that these criteria are satisfied. Given how difficult they can be to determine, you should consult a solicitor who can guide you through the process and thoroughly examine your specific circumstances.

Can I lose my right to statutory redundancy pay?

There are situations in which you can lose your right to statutory redundancy pay to ensure the system is not biased against your employer.

Many employers, especially small employers with close knit teams, may try to find an alternative job for you within the company. If this is the case and you refuse the other job without what is deemed to be a good reason then you will lose your right to redundancy pay. 

You can also lose redundancy pay by leaving before your job has ended. You may leave for good reason such as an offer of employment elsewhere or you have moved out of the area, but you must do so in the knowledge that you will not receive the redundancy pay.

In addition, if you do something that is deemed to be gross misconduct during the period between being told of redundancy and the job ending then you will forfeit your right to statutory redundancy pay.

How much can I get?

How much you can receive depends on your age, gross weekly pay (your pay before tax deductions) and your years of service. Any redundancy payment that you receive is completely tax-free.

The government has provided an online calculator to allow you to calculate your entitlement. However, by way of a brief overview the amount you will receive is set out below:

  • Age 18 – 22 = half a week’s pay for every full year worked for that employer.
  • Age 22 – 40 = one weeks’ pay for every full year worked for that employer.
  • Age 41 + = one and a half weeks’ pay for every full year worked for that employer.

Can my payment be reduced?

There are circumstances in which your payment can be reduced such as if you agreed to take a lower wage to help the business through economic hardship before being made redundant. However, this will depend on the contractual agreement between yourself and your employer.

If you are on sick leave or maternity leave your redundancy pay will not be reduced and your weekly pay before the period of leave commenced will be used in the calculation.

When will I receive my redundancy pay?

Employers should ensure statutory redundancy payments are paid either on the date you leave work or on a date you both have agreed on. Your payment should be explained to you and should be received into your bank account as if it was a wage.

If you have problems receiving your statutory redundancy payment from your employer you should contact a solicitor immediately.

Contact our Redundancy Solicitors for Senior Employees and Executives, London

Cavendish Employment Law Limited is a specialist employment law firm with a Head Office in London and leading employment lawyers throughout the UK. We’re experts in this complex and fast-moving area of law, with a well-deserved reputation for not only getting results for our clients but also exceeding their expectations.

We’re a City law firm with a high profile and an enviable track record in advising and representing employees from all parts of the employment spectrum, including fund managers, senior insurance brokers, leading bankers, hedge fund managers, middle-managers, and ancillary staff. If you’re looking for expert advice on a potential redundancy or have been made redundant, we will give you practical assistance aimed at ensuring you’re treated fairly throughout the process. Please contact us for more information.

100% Success Rate in Contentious Cases for both Employees & Employers

Contact our employment lawyers on 02071674800
or contact us online.



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