Statutory redundancy pay and contractual redundancy pay Statutory redundancy pay is the legal minimum. Your employer can’t pay you less than this. This is called ‘contractual redundancy pay’. This could mean a bigger lump sum or getting a payout, even if you’ve worked there for less than two years.
What payments are you entitled to when made redundant?
‘statutory’ redundancy pay – what the law says you’re entitled to. ‘contractual’ redundancy pay – extra money your contract says you can get on top of the statutory amount….How much statutory redundancy pay you can get
- up to age 22 – half a week’s pay.
- age 22 to 40 – 1 week’s pay.
- age 41 and older – 1.5 weeks’ pay.
What is a genuine redundancy situation?
A genuine redundancy is one where your employer has a real business reason to make you redundant – usually because: your employer doesn’t need you to do your job any more.
Can a company make you redundant then employ someone else?
Once employment has terminated by reason of redundancy, if the economic situation suddenly changes and the employer needs to employ someone, it may re-employ the redundant employee. The employer is under no obligation to offer the redundant employee their job back; it is entitled to recruit someone else instead.
What happens if a redundancy is not genuine?
Other possible reasons for non-genuine redundancies include failure to undergo a proper consultation with the redundant employees and failing to issue a redundancy pay for the employees. If a non-genuine redundancy has been confirmed, employees can file for an unfair dismissal claim.
How long after being made redundant can my job be re advertised?
You can advertise a job after redundancy at any time. However, employment tribunals account for the time between redundancies and rehiring. Because of this, any employers that are considering advertising a job after redundancy should wait three months.
How long after making someone redundant can you replace them?
Therefore, generally, you should not recruit into a role that you have made redundant for a minimum of 6 months after the termination date of the employee.
Unfortunately, employers are allowed to make an employee redundant and then hire someone to do the job for lower pay. This would include an apprentice carrying out the role after the previous employee was made redundant. However, they should have offered this role (and the pay) to you before hiring the new person.
How do I know if my redundancy is fair?
Check if your redundancy is fair
- Contact your nearest Citizens Advice if you need help at any stage.
- Check if your employer has discriminated.
- Check if you’ve been chosen for a fair reason.
- Make sure your employer holds a group consultation if they’re making at least 20 people redundant.
Because of this, any employers that are considering advertising a job after redundancy should wait three months. This is as soon as a job can be advertised after redundancy, as the time limit for employees to make a claim in an employment tribunal is three months.
When do you get redundancy pay if you are made redundant?
If you’re made redundant on or after 31 July 2020, the rules make clear that any statutory redundancy pay you’re due MUST be based on your normal wage.
How much can you claim from national insurance if you are made redundant?
If you’re owed wages or holiday pay from a firm that’s gone bust, you can also claim the following from the National Insurance Fund via the Redundancy Payments Service. Unlike redundancy pay, this is taxed, though it does use the same ‘maximum’ rule of no more than £538 a week (£560 in Northern Ireland).
What’s the maximum amount you can get if you are made redundant in Northern Ireland?
The maximum amount of statutory redundancy pay you can get is £16,140 (£16,800 in Northern Ireland). If you were made redundant before 6 April 2020, you will get lower amounts. Note it isn’t the age you are now that counts, but the age during each year you’ve been in your job.
How does being on furlough affect your statutory redundancy pay?
A new law passed by the Government and effective from 31 July 2020 means that being on furlough will not affect your statutory rights to redundancy pay or the relevant amount of notice. The new rules ensure: Any statutory redundancy pay you’re due MUST be based on your normal wage.
