If your employer has no work for you this will usually be a redundancy situation and all employees with two years or more service will be entitled to redundancy pay. But if there is a clause in your contract permitting the employer to lay off or introduce short time working this may affect your claim. See I have a lay-off clause in my contract, can I claim a redundancy payment?
How much redundancy pay are you entitled to?
Statutory redundancy pay depends on your age and length of service. You will be entitled to your gross weekly pay, up to a maximum of £538 per week, for each year of service up to a maximum of 20 years, with 1.5 weeks per year over the age of 40.
For example if you have worked for five years, earn more than £538 per week and are 35 years old you would receive £2,690. If your employer usually pays enhanced contractual payments this should apply instead.
For employees who were made redundant after being furloughed during the Covid pandemic your redundancy pay must be calculated on your pre-furlough pay and not any reduced rate that was agreed during furlough.
In order to make redundancies an employer must:
- have a fair selection process as to who is to be made redundant
- consult with you (and in some cases the union), and consider offering any alternative work that is available.
If the employer acts unfairly, or in a discriminatory way, in making redundancies there could be an unfair dismissal claim.
If it is likely to be a temporary period of no work, you might want to accept a short period of leave or reduced hours, rather than taking redundancy pay, in order to maintain your employment. Contact the union to discuss this further.
This page is designed to give general information about members’ rights on returning to work. It does not cover all circumstances and should not be treated as a definitive answer. Members should contact Prospect either through the Member Contact Centre on 0300 600 1878 or contact their union rep or full-time officer for specific advice.
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Members can get more detail by logging in and downloading our guide to redundancy.