YOUR REDUNDANCY PAY — THE FACTS
Statutory redundancy pay is calculated using three factors: your age, your length of service, and your weekly pay.
For workers aged 41 and over, the law entitles you to 1.5 weeks' pay for every year of service worked after your 41st birthday. For service between ages 22 and 40, you receive one week's pay per year. For any service worked before age 22, you receive half a week's pay per year.
The current weekly pay cap is £643 (April 2024 rate). You can count a maximum of 20 years of qualifying service. This means the maximum statutory redundancy pay available is £19,290 — and if you are over 50 with a long service record, you may be entitled to the full amount or close to it.
Critically, many employers offer enhanced redundancy pay above the statutory minimum. Always check your contract and your employer's written redundancy policy before you accept any offer. Enhanced terms can significantly increase what you receive, and employers are not always forthcoming about them.
WHAT A FAIR REDUNDANCY PROCESS LOOKS LIKE
Regardless of your age, salary, or seniority, your employer is legally required to follow a fair and transparent process. That means:
✅ Giving you adequate advance warning that redundancies are being considered ✅ Consulting with you individually and genuinely — not simply informing you of a decision already made ✅ Using objective and non-discriminatory selection criteria ✅ Exploring suitable alternative roles within the organisation before dismissing you ✅ Giving you the right to be accompanied at any redundancy or consultation meeting ✅ Providing a formal right of appeal against the redundancy decision
Where 20 or more redundancies are planned within 90 days, collective consultation rules apply. Your employer must notify the government via an HR1 form and begin a minimum 30-day consultation period (45 days where 100 or more roles are affected). Failure to comply can result in a protective award of up to 90 days' pay per affected employee — paid by the employer regardless of the redundancy payment already made.
HOW TO SPOT AGE DISCRIMINATION DISGUISED AS REDUNDANCY
Age discrimination in redundancy is unlawful under the Equality Act 2010. It is not always obvious — but these are the warning signs to look for:
⚠️ Selection criteria that disproportionately disadvantage older workers — such as "adaptability," "flexibility," or weighting against length of service ⚠️ Being selected while younger colleagues performing the same role are retained ⚠️ Being steered toward early retirement rather than offered genuine alternative employment ⚠️ Assumptions made about your retirement plans, long-term commitment, or ability to develop ⚠️ A process that felt rushed, scripted, or where real consultation never took place
If age played any part in your selection — even alongside other stated reasons — you may have valid grounds for an age discrimination claim at an Employment Tribunal. These claims are separate from unfair dismissal, carry no upper limit on compensation, and can be brought even where the redundancy itself was genuine.
WHAT TO DO BEFORE YOU SIGN ANYTHING
This is the most important part. Before you accept any offer, sign any settlement agreement, or waive any rights:
Check your redundancy pay calculation against the statutory formula — errors and underpayments are common, particularly for long-serving employees Review your employment contract for enhanced redundancy terms your employer may not have volunteered Request full written details of the selection process, the criteria used, and how you were scored Assess honestly whether the process followed the legal requirements at every stage If a settlement agreement is offered, you are legally required to receive independent legal advice before signing — and your employer must contribute toward the cost of that advice Do not let time pressure push you into accepting less than you are entitled to. Take the time to understand your position fully.
TAKE ACTION TODAY — FREE TOOLS AND GUIDANCE
👉 Use our free Redundancy Pay Calculator to check exactly what you are owed: myredundancyrights.co.uk 👉 Read your full legal rights in plain English — no jargon, no cost 👉 Download our free Redundancy Action Plan — step by step guidance from day one 👉 Use our free template letters to request your selection criteria, appeal the decision, or write a formal grievance 👉 Find a solicitor through our Employment Law Partner Network if you need professional legal advice
MyRedundancyRights provides free, plain English guidance for every UK worker facing redundancy. No jargon. No cost. No catch.
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