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Redundancy - Do you know where you stand?

Jul 08, 2014

If you have recently found out that the company you work for is planning to make a number of redundancies do you know what payments you will be entitled to? If you volunteer for redundancy will you be entitled to a bigger payment?

If your role is made redundant, the minimum you are entitled to by law is a statutory redundancy payment, a payment for any accrued but untaken holiday as of the date your employment terminates, and a payment in lieu of your contractual notice period (if you do not work your notice).

A statutory redundancy payment is calculated by reference to age, length of service and weekly salary, as at the date your employment terminates. Length of service is capped at 20 years, and weekly salary is subject to a cap of £464. 

However, it is possible that the company operates a company redundancy policy, in which case you could be entitled to an enhanced redundancy payment. It is worth checking your staff handbook or any employment documentation to find out.

It is possible to apply for voluntary redundancy, but your employer may confine applications to selected categories. For example, if your role is not at risk of redundancy such an application may not be accepted. In any event, volunteering for redundancy does not automatically entitle you to an enhanced payment, unless company policy states otherwise.



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