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Welcome to www.Statutory-Redundancy.co.uk your online information resource for statutory redundancy in the UK.

What is Redundancy?

There are three types of redundancy:

  1. Job Redundancy;
  2. Place of Work Redundancy; and
  3. Employee Redundancy

Job Redundancy is where an employer ceases to operate its business. The legal definition of this type of redundancy is that the employer has ceased or intends to cease to carry on business for the purposes of which the employee was employed by him (section 139(1)(a)(i) of the Employment Rights Act 1996).

Place of Work Redundancy is where an employer ceases to operate its business in the location where the employee is employed. The legal definition of this type of redundancy is that the employer has ceased or intends to cease to carry on that business in the place where the employee was so employed (section 139(1)(a)(ii) of the Employment Rights Act 1996).

Employee Redundancy is where an employer does not cease to operate the business but the requirement for a specific type of work reduces or cease. The legal definition of this type of redundancy is the fact that the requirements of the business
(i) for employees to carry out work of a particular kind, or

(ii) for employees to carry out work of a particular kind in the place where the employee was employed by the employer,

have ceased or diminished or are expected to cease or diminish (section 139(1)(b)(i)&(ii) of the Employment Rights Act 1996).

How Much Redundancy Pay am I entitled to?

Redundancy pay is calculated based on your age, length of service and pay using the following formula:

(Age factor) x (number of complete years of service) x (gross weekly salary (capped at £464)) = Statutory Redundancy Entitlement.

The age factor is

  • 0.5 for each full year of service where your age was under 22;
  • 1 for each full year of service where your age was 22 or above, but under 41; and
  • 1.5 for each full year of service where you age was 41 or above.

Therefore, an employee aged 35 with 5 years service and a gross weekly wage of £600 would be entitled to:

1 (age factor) x 5 (number of years service) x £464 (gross salary capped at £464) = £2,320

You can use the following calculator to calculate statutory redundancy entitlement:

Age at termination of employment:
(minimum 17)
Number of complete years of service:
(minimum 2, maximum 20)
Gross weekly pay (before tax):
(maximum £464.00)
Statutory Redundancy Entitlement:

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