Redundancy Payments and Law

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"People who sought help and advice about redundancy payments, and their job search effectively plan their way forward and develop new careers. Redundancy is an opportunity for positive change. Spend time on self-discovery and refocusing your career - life balance.


Employers must give you a lump-sum payment if you are made redundant and if you have at least 2 years continuous service since the age of 18. If this has been agreed in your Contract of Employment, you may be entitled to non-statutory payments.

Do You Qualify for a Redundancy Payment?

You will receive a payment only if you are an employee with a Contract of Employment. The self-employed or members of partnerships do not qualify. However, they have separate contractual agreements.

The amount of your redundancy payment.

The amount of your redundancy payment is dependant on your continuous employment, how your continuous service relates to your age band and your weekly pay.
For every continuous year of service between the ages of 18 and 21, you should receive a week's pay. For every year of continuous service between 22 and 40, you should receive 1week's pay. Between the ages of 41 and 65 you should receive 1 weeks' pay. However, if you are more than 64 the total amount will be reduced.

The redundancy payments scheme (Employment Rights Act 1996) outlines the rules for offsetting pension and lump sum payments under occupational pension schemes against statutory redundancy payments.

It is not a complete or authoritative statement of the law; only the courts can provide that. If in doubt, you should seek your own independent legal advice.

The Redundancy Payments Offices can give you more information about entitlement in cases where an employer fails to pay a statutory redundancy payment for which an employee qualifies.


There is a helpline to answer your questions. The number to ring is 0845 145 0004 (calls are charged at local rates).

Here's a Redundancy Payment Calculator (opens new window) for calculating the number of weeks' pay due.

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