Question 1

Do I qualify for redundancy pay with under 2 years' service?

Accepted Answer

No, you need at least 2 full years of continuous employment to qualify for statutory redundancy pay. However, you may still be entitled to notice pay, payment for unused holiday, and any outstanding wages.

Question 2

What if I worked part-time?

Accepted Answer

Part-time workers have the same redundancy rights as full-time employees. Your redundancy pay is calculated using your average weekly pay (calculated over the 12 weeks before your notice period). If you work part-time, this will naturally result in a lower weekly figure, but you're not disadvantaged compared to full-time workers.

Question 3

How is weekly pay calculated if I have variable hours or commission?

Accepted Answer

For variable pay, take the average of your gross weekly pay over the 12 weeks before your redundancy notice. Include all regular pay elements: basic pay, guaranteed overtime, commission, and bonuses that are part of your normal pay. Exclude one-off payments.

Question 4

What if I was on maternity, paternity, or shared parental leave?

Accepted Answer

Time spent on maternity, paternity, or shared parental leave counts towards your continuous service. For calculating weekly pay, use your normal pay before the leave started, not any reduced statutory pay you received during leave.

Question 5

Do I pay tax on redundancy pay?

Accepted Answer

The first £30,000 of statutory redundancy pay and any ex-gratia payment is tax-free. Any amount over £30,000 is subject to income tax (but not National Insurance). Payment in lieu of notice (PILON) and holiday pay are always taxed as normal earnings.

Question 6

Can my employer make me redundant if I'm pregnant?

Accepted Answer

You can be made redundant whilst pregnant, but only if it's a genuine redundancy situation. You have extra protection - if there's a suitable alternative vacancy, you must be offered it in priority over other employees. Dismissal whilst pregnant can be automatically unfair unless it's a genuine redundancy.

Question 7

What's the difference between redundancy and being sacked?

Accepted Answer

Redundancy occurs when your job is no longer needed (business closure, reduced workload, job role eliminated). Being sacked (dismissed) is usually for conduct, capability, or other reasons related to you personally. With redundancy, you may be entitled to statutory redundancy pay if you qualify.

Question 8

Can I be forced to take voluntary redundancy?

Accepted Answer

No, voluntary redundancy is just that - voluntary. Your employer can offer voluntary redundancy and you can choose whether to accept. If you decline, you may still be at risk of compulsory redundancy if your employer proceeds with workforce reduction.

Question 9

What if my employer can't afford to pay redundancy?

Accepted Answer

If your employer is insolvent (bankrupt, in administration, or liquidation), you can claim statutory redundancy pay, notice pay, and holiday pay from the government's National Insurance Fund. Contact the Redundancy Payments Service. You may not receive contractual redundancy pay above the statutory minimum.

Question 10

How long do I have to claim if my employer doesn't pay?

Accepted Answer

You normally have 6 months from your employment ending to make a claim to an employment tribunal for unpaid redundancy pay. This can be extended in some circumstances, but don't delay - seek advice quickly if your employer won't pay what you're owed.

Question 11

Can I work during my notice period?

Accepted Answer

Yes, unless your employer puts you on garden leave (pays you but asks you to stay away from work). You're entitled to reasonable time off during your notice period to look for new work or arrange training. This should be paid, but check your contract for specific terms.

Question 12

What if I find a new job before my redundancy date?

Accepted Answer

You can ask to leave early, but your employer doesn't have to agree. If they agree, you should still receive your full redundancy pay. If you resign without agreement, you may lose your right to redundancy pay. Get advice before making decisions.

Frequently Asked Questions

Ready to Calculate Your Redundancy Pay?