The law on redundancy pay
Redundancy is an area of employment that is heavily regulated by the law. Redundancy pay is subject to many rules and if you are facing redundancy, it is important to know what you are entitled to. An expert employment solicitor will be able to explain your legal entitlement to you.
Under redundancy law, redundancy pay is only available if you meet certain criteria. Firstly, you must have actually been dismissed. Secondly, you must have been in your job for two continuous years. Thirdly, you must have been working as an employee under a contract of employment.
According to the law, redundancy pay must meet the statutory minimum. The amount of redundancy pay you receive will depend on a number of things, including the length of time in continuous employment in your job and your age.
The statutory minimum redundancy pay will be calculated as follows:
- Half a week’s pay for each full year of service where age during the year is less than 22
- One week’s pay for each full year of service where age during the year is 22 or above, but less than 41
- One and a half weeks’ pay for each full year of service where age during the year is 41 and above
Your may be able to negotiate a bigger redundancy payment with your employer, and some contracts of employment will allow for a more generous redundancy payment. If your employer is offering you more than the statutory minimum in order to avoid an unfair dismissal claim, an employment solicitor should be consulted.
If you would like to obtain legal advice on redundancy pay laws, Contact Law can put you in touch with a local specialist employment / redundancy solicitor free of charge. So, if you have any questions or would like our help in finding local employment / redundancy solicitors please call us on 0800 1777 162 or complete the web-form above.
- Last Updated on 20/02/2012