Redundancy rights – where do you stand?

Losing your job is something you hope won’t happen, but if it does, where do you stand when it comes to redundancy rights?

Nine million of us have been on ‘furlough’ during the Coronavirus pandemic. Officially known as the Coronavirus Job Retention Scheme, the Government has been picking up the tab for 80% of each employee’s wages, up to £2,500 a month. But despite the billions being spent in an attempt to save jobs, in the long term, it’s sadly inevitable that redundancy will be on the cards for some of us.

So here’s a run down of what you need to know if it happens to you.

First up, you should be told why you’re being made redundant, say the company is downsizing or shutting up shop for good.

How much notice will I get?

This all depends on how long you’ve been with the company.

You should get at least one week’s notice if you’ve been working for the same company from at least one month up to two years.

And it’s one week’s notice per year, from two years up to twelve years, with a limit of twelve weeks notice if you’ve been there beyond twelve years.

Statutory Redundancy Pay

If you’re an ’employee’, and worked continuously for the same company for two years or more, you can get Statutory Redundancy Pay. This is the basic minimum payout, as some companies may pay more. And how much you get depends on your age and how long you’ve been working for the company.

How much will I get?

  • You should get half a week’s pay for each full year of service if you’re under 22
  • It’s one week’s pay for each full year between the ages of 22 – 40
  • It’s one and a half week’s pay for each full year if you’re 41 and over.
  • Worth knowing that some companies are more generous and will pay a month’s salary for each full year of service.

There are limits on how much you can get. This includes a limit on weekly redundancy pay at £538 and a cap on the maximum statutory redundancy payout at £16,140.

You can work out how much you’ll get using the Government’s Redundancy Pay Calculator

5 fact checklist…….

  • If you’re being made redundant, you may be due paid time off to look for another job so ask your boss.
  • Any time spent on ‘furlough’ counts towards your years of service for redundancy pay.
  • Redundancy pay is tax free up to £30,000. Top this and you’ll only be liable for tax on anything over this limit.
  • You can get financial help in the form of mortgage payment holidays, credit card, loan and car finance freezes so speak to your bank or lender.
  • There’s more on your rights and and redundancy on the Government website and you can get free advice on redundancy issues from ACAS

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