Step 1: Am I eligible for statutory redundancy pay?

Eligibility requires at least two years of continuous service and being made redundant as an employee.

To qualify for statutory redundancy pay, you must be an employee (not a contractor) and have at least two years of continuous service with the same employer when the redundancy ends.

The payment is payable only when the employee is genuinely made redundant due to the needs of the business and not for voluntary resignation or retirement.

There are common situations that can affect eligibility, such as changes to your contract or if you are on a fixed‑term contract that ends because of redundancy.

• You must have at least 2 years of continuous service
• You must be an employee, not a self‑employed contractor
• Redundancy must be for business reasons (not you choosing to leave)

Step 2: Age bands and weeks’ pay

Redundancy weeks depend on your age in each year of service.

In the statutory redundancy pay calculation, your entitlement for each year of service depends on your age during that year. The standard bands are: under 22 earns 0.5 weeks, 22–41 earns 1 week, and 41 or older earns 1.5 weeks.

You can receive a maximum of 20 years of service for redundancy pay calculations, even if you have worked longer. The calculation uses a weekly pay figure that is subject to a government cap, which changes annually, so check GOV.UK for the current amount.

There is also a maximum total due, known as the maximum weeks’ pay (often described as up to 30 weeks’ pay in total under the rules). The weekly cap and the 30‑week total ensure the award remains proportionate.

• Age bands determine weekly entitlement per year
• Maximum service for SRP calculation: 20 years
• Weekly pay is capped; check current GOV.UK figure
• Total entitlement cannot exceed 30 weeks’ pay

Step 3: Applying the calculation

Add up annual entitlements and apply caps to determine the gross SRP.

For each year of service (up to 20 years), determine the appropriate weekly entitlement based on your age in that year, then sum these figures.

Multiply the total number of weeks by the lower of your actual weekly pay and the government weekly cap to obtain the gross statutory redundancy pay.

Remember, the total is capped at 30 weeks’ pay, so even with longer service or higher ages, you won’t receive more than 30 weeks’ pay.

• Calculate per-year entitlement using the age bands
• Sum up to 20 years of service
• Apply the 30-week cap and the weekly pay cap

1. 1) List every year of service and your age in that year.
2. 2) Assign the weekly entitlement (0.5, 1, or 1.5 weeks) for each year.
3. 3) Sum all yearly entitlements to get total weeks.
4. 4) Multiply the total weeks by the lower of your actual weekly pay and the government weekly cap.

Step 4: Negotiating or challenging an offer

If your employer offers less than the calculated amount, check your figures, gather evidence, and discuss; you may need formal steps.

If the offered amount from your employer is less than your calculated statutory redundancy pay, ask for a written explanation and provide your calculations and payslips.

Keep records of your service, pay history, and any correspondence. A constructive conversation early can resolve many disputes without formal action.

If informal talks don’t fix the issue, you can consider formal steps such as a written grievance, contacting ACAS for early conciliation, and potentially making a Tribunal claim if the redundancy payment remains unpaid or underpaid.

• Review your calculation with pay records
• Request a written explanation from your employer
• Consider ACAS early conciliation if needed
• Seek tribunal redress if payment is still unresolved

Step 5: Time limits and tribunal options

Time limits are strict; understand when the clock starts, and consider early conciliation.

Time limit: You have three months minus a day from the date the entitlement to payment arose—usually the date of dismissal or when the redundancy payment should have been made.

ACAS early conciliation can extend the deadline. If you start ACAS early conciliation before the three-month deadline, the period is extended to accommodate the EC process; see GOV.UK guidance for the exact extension in your case.

A tribunal claim will assess whether the employer paid the correct amount and, if not, may order payment plus any statutory interest.

Tax treatment: Statutory redundancy pay is tax-free up to £30,000; any amount above is taxable.

• Time limit is typically 3 months less a day from entitlement date
• Start with informal resolution and ACAS early conciliation
• Tribunals can award missing payments and interest
• Tax treatment: tax-free up to £30,000; above that is taxable