Statutory Redundancy

STATUTORY REDUNDANCY PAY

Statutory Redundancy pay increases from 1st October 2009 from £350.00 per week to £380.00 per week. If an employee's weekly salary is lower than the statutory amount, then the lower amount is payable. Statutory Redundancy pay is tax free up to £30,000. Redundancy pay over £30,000 is subject to tax at basic rate currently 20% and no Employees or Employers NIC is payable. To qualify an employee must have been continuously employed for a minimum of two complete years.

The table below shows how many weeks redundancy an employee would be entitled to based on age and length of employment. If the employees earnings vary each week, an average of the last 12-week period leading up to the redundancy is used. Statutory Redundancy is capped at 20 years service.

STATUTORY REDUNDANCY TABLE

17* - The table starts at age 17, as it is possible for a 17 year old to have 2 years service. Compulsory school leaving age can be 15 3/4 or 15 4/5 where a child is 16 before 1st September.

61* - The table stops at age 61 because for employees aged 61 and over, the payment remains the same.

The number in the grid indicates the number of weeks Statutory Redundancy due, based on age and length of service i.e. if you were 44 and worked for 5 complete years you would be due 6.5 weeks Statutory Redundancy 6.5 x £380.00 = £2,470.

 
Service (Years)
Age
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
17*
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19
1
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20
1
2
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21
1
2
3
-
 
 
 
 
 
 
 
 
 
 
 
 
 
22
1
2
3
-
 
 
 
 
 
 
 
 
 
 
 
 
23
2
3
4
-
 
 
 
 
 
 
 
 
 
 
 
24
2
3
4
5
-
 
 
 
 
 
 
 
 
 
 
25
2
3
4
5
6
-
 
 
 
 
 
 
 
 
 
26
2
3
4
5
6
7
-
 
 
 
 
 
 
 
 
27
2
3
4
5
6
7
8
-
 
 
 
 
 
 
 
28
2
3
4
5
6
7
8
9
-
 
 
 
 
 
 
29
2
3
4
5
6
7
8
9
10
10½
-
 
 
 
 
 
30
2
3
4
5
6
7
8
9
10
10½
11
11½
-
 
 
 
 
31
2
3
4
5
6
7
8
9
10
10½
11
11½
12
12½
-
 
 
 
32
2
3
4
5
6
7
8
9
10
10½
11
11½
12
12½
13
13½
-
 
 
33
2
3
4
5
6
7
8
9
10
11
11½
12
12½
13
13½
14
14½
-
 
34
2
3
4
5
6
7
8
9
10
11
12
12½
13
13½
14
14½
15
15½
-
35
2
3
4
5
6
7
8
9
10
11
12
13
13½
14
14½
15
15½
16
16½
36
2
3
4
5
6
7
8
9
10
11
12
13
14
14½
15
15½
16
16½
17
37
2
3
4
5
6
7
8
9
10
11
12
13
14
15
15½
16
16½
17
17½
38
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
16½
17
17½
18
39
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
17½
18
18½
40
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
18½
19
 
Service (Years)
Age
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
41
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
19½
42
10½
11½
12½
13½
14½
15½
16½
17½
18½
19½
20½
43
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
44
3
10½
11½
12½
13½
14½
15½
16½
17½
18½
19½
20½
21½
45
3
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
46
3
6
10½
11½
12½
13½
14½
15½
16½
17½
18½
19½
20½
21½
22½
47
3
6
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
48
3
6
9
10½
11½
12½
13½
14½
15½
16½
17½
18½
19½
20½
21½
22½
23½
49
3
6
9
10½
12
13
14
15
16
17
18
19
20
21
22
23
24
50
3
6
9
10½
12
13½
14½
15½
16½
17½
18½
19½
20½
21½
22½
23½
24½
51
3
6
9
10½
12
13½
15
16
17
18
19
20
21
22
23
24
25
52
3
6
9
10½
12
13½
15
16½
17½
18½
19½
20½
21½
22½
23½
24½
25½
53
3
6
9
10½
12
13½
15
16½
18
19
20
21
22
23
24
25
26
54
3
6
9
10½
12
13½
15
16½
18
19½
20½
21½
22½
23½
24½
25½
26½
55
3
6
9
10½
12
13½
15
16½
18
19½
21
22
23
24
25
26
27
56
3
6
9
10½
12
13½
15
16½
18
19½
21
22½
23½
24½
25½
26½
27½
57
3
6
9
10½
12
13½
15
16½
18
19½
21
22½
24
25
26
27
28
58
3
6
9
10½
12
13½
15
16½
18
19½
21
22½
24
25½
26½
27½
28½
59
3
6
9
10½
12
13½
15
16½
18
19½
21
22½
24
25½
27
28
29
60
3
6
9
10½
12
13½
15
16½
18
19½
21
22½
24
25½
27
28½
29½
61+
3
6
9
10½
12
13½
15
16½
18
19½
21
22½
24
25½
27
28½
30

 

Useful websites:     www.direct.gov.uk
  www.businesslink.gov.uk
  www.berr.gov.uk