An important part of what to do when being made redundant is knowing your rights and what you are entitled to claim.
If you’re wondering, about being made redundant, ‘can I claim benefits?’ here are some of the redundancy benefits offered by employers.
You should check with your employer if they have a contractual redundancy policy, and if they do, ensure they are following it.
This is important as a contractual redundancy policy entitles your employer to follow a detailed redundancy process including redundancy pay and redundancy pay tax.
- What redundancy pay UK is available and what am I entitled to?
Redundancy pay is an after redundancy employment benefit employees are offered by an employer. To be entitled to this pay you need to have worked continuously for an employer for at least two years or have a fixed-term contract of two years or more that expires and is not renewed because of redundancy. For others not covered by this, you are eligible to notice period money and any holiday pay you’re owed.
Statutory redundancy day and contractual redundancy pay are the two main types of redundancy pay, here’s more about each.
Statutory redundancy pay is redundancy pay that all employers have to pay by law, if you classify for redundancy pay. You shouldn’t have to claim this redundancy pay from your employer, it should be automatically paid the same way your wages are. If your employer fails to do this, put the request in writing and if they don’t after this you may need to take them to an Employment Tribunal.
- Statutory redundancy pay calculator
How much statutory redundancy pay you’re entitled to depends on how long you’ve worked for your employer, how old you are and how much you earn a week. The redundancy pay limit is capped at £430.
Here’s how to calculate how much you’re owed:
- Half a week’s pay for each full year of service where you were under 22
- 1 week’s pay for each full year of service where you were older than 22 but under 41
- 1.5 week’s pay for each full year of service where your age was 41 or above
- The maximum number of years that can be taken into account is 20 years
- Contractual redundancy pay
Contractual redundancy pay is an additional payment that is only entitled to employees if it is stated in your employment contract. If you receive this, you should still receive the full statutory redundancy pay as well.
- Is my redundancy an unfair dismissal?
It’s important to know that you weren’t made redundant for an unfair reason. Under the Employment Rights Act (1996) you have the right to ask your employer to provide a written statement of the reasons for your dismissal within 14 days. Find out more about which particular reasons a tribunal is likely to find justifiable for an unfair dismissal.
If a Tribunal finds you have been unfairly dismissed, they may order your employer to reinstate you and give you back your job, re-engage you in a different job or pay compensation. It’s important to know all your rights regarding redundancy, so you are treated fairly and are entitled to the benefits you have earned.