How does redundancy payment work

Find out how to work out average pay for bonuses and commission on GOV. If your staff were put on furlough , they may have received reduced pay.

See detailed examples of calculating redundancy pay for employees who have been on furlough. You should pay redundancy no later than an employee's final pay day. 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. If you're aged 17 to 21 Your employer must give you half a week's pay for each full year you've worked. If you're aged 22 to 40 Your employer must give you: 1 week's pay for each full year you worked from age 22 half a week's pay for each full year you worked before that If you're aged 41 or over Your employer must give you: 1. Limits on redundancy pay There are limits to how much redundancy pay you can get.

When you'll get paid Your employer should tell you when you'll get your redundancy pay — this should be on or before your final pay date. You and your employer can agree to a different date, which should be put in writing. If your employer does not pay you If you do not get your redundancy pay you should: 1.

You have to claim for any unpaid redundancy within 6 months of your job ending. Last reviewed. Print Download. Print close X. Download close X. Email address. Select the statement you most agree with:.

I do not understand the information. I cannot find the information I'm looking for. I cannot work out what to do next. Write to your employer telling them you intend to claim statutory redundancy pay. This must be done within 4 weeks of your last non-working day in the 4 or 6 week period. If your employer does not reject your claim within 7 days of receiving it, write to your employer again giving them your notice. Your claim could be rejected if your normal work is likely to start within 4 weeks and continue for at least 13 weeks.

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