Redundancy Payment
What is the current weekly limit for redundancy pay?With effect from 1 February 2007 the weekly limit is £310. For redundancies prior to 1 February the previous weekly limit of £290 should be used. The limit changes annually in line with the retail prices index (up or down) as appropriate.
How long will it be before I can expect my money?
If your employer is paying the redundancy, then it should be paid on the last day that you work or as soon as is possible; if there is to be any lengthy delay, then it must be agreed with the employee. If the employee feels that they are having to wait too long, then they can take the employer to an Employment Tribunal.
How do I obtain a copy of the notification form HR1 or claim form RP1?
Claim for payments from the National Insurance Fund (Form RP1) can be found in the guide:
Do I pay tax and NI on my redundancy payment?
There are NO deductions on redundancy up to £30,000. For anything over that amount, you must contact your local tax office.
Do I pay tax on my notice pay?
Tax may not be deducted from your notice pay in some circumstances; it is advisable to contact your local tax office for clarification.
Am I entitled to a redundancy payment if I work only a few hours a week?
It does not matter how many hours a week you work; you need to have completed 2 full years of service since the age of 18.
How much notice of redundancy am I entitled to?
The statutory notice is one week for every complete year worked, up to a maximum of 12 weeks. Where you have completed over one calendar month but less than one year, you are entitled to one week's notice. If your contract states differently, you should be paid for the longer of the contract and statutory period unless the company is insolvent.
What can I do if I disagree with the redundancy payment?
In the first instance you must contact your employer to see why there is a discrepancy. If they do not amend the payment, then you have the right to put your case to an Employment Tribunal, which must be done within 6 months of being made redundant. You must make an application on form IT I.
If I have been laid off, can I still claim redundancy?
You can request your redundancy after being laid off for 4 weeks consecutively or for 6 weeks out of 13 and have received less than 1/2 a week's pay. Your employer is obliged to pay the redundancy unless they can offer you 13 weeks' work within 4 weeks.
I am entitled to 5 weeks' notice but the company has not paid me for it and it is not insolvent
You must apply to an Employment Tribunal in the first instance and if you are awarded a decision and the employer still does not pay you, then you can take the matter to the county court (or in Scotland, the sheriff court).
I am an employer. What is the consultation period if I make 30 people redundant?
The minimum consultation period required is
20 - 99 employees - at least 30 days
100+ employees - at least 90 days
Am I entitled to redundancy payment?
You need to have completed 2 full years of service since the age of 18. Further information is available in the document Redundancy Redundancy entitlement - statutory rights. (However as of 1 October 2006, there is no age requirement. You need to have completed 2 full years of service).
The business that I work for has been taken over by a new company. Am I entitled to redundancy?
This may be a transfer of an undertaking and it is possible that you may not be entitled to a redundancy payment. As it varies with each case, you will need to contact our helpline on 0845 145 0004 and provide them with the details.
If during my notice period my employer reduces my hours, should I be paid my normal weekly wage?
Yes, you should be.
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