Redundancy when is it paid




















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Top links Find your local Citizens Advice Volunteer with us Jobs in our network Press releases Our blogs Read what we're saying about a range of issues. England This advice applies to England: England home Advice can vary depending on where you live. Check how much redundancy pay you can get This advice applies to England Print. How much statutory redundancy pay you can get You can see how much redundancy pay you'd get using the redundancy pay calculator on GOV.

Redundancy pay is based on your earnings before tax called gross pay. For each full year you've worked for your employer, you get: up to age 22 - half a week's pay age 22 to 40 - 1 week's pay age 41 and older - 1. You won't pay any tax on your statutory redundancy pay. You might be unsure what your length of service is if: you weren't given the statutory notice period you were entitled to you were given pay in lieu of notice In these situations you can work out your length of service by adding on the amount of statutory notice you should have had.

Your employer will deduct tax and National Insurance contributions from any wages or holiday pay they owe you. Being dismissed for misconduct does not count as redundancy, so you would not get statutory redundancy pay if this happened. Write to your employer telling them you intend to claim statutory redundancy pay. This must be done within 4 weeks of your last non-working day in the 4 or 6 week period. If your employer does not reject your claim within 7 days of receiving it, write to your employer again giving them your notice.

Your claim could be rejected if your normal work is likely to start within 4 weeks and continue for at least 13 weeks. Check what you need to do. Outside of these hours, or if all advisers are busy, you can ask questions online.

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When should I receive my redundancy payment? What is a redundancy payment? When are redundancy payments offered? The most common situation in which to make a claim for a statutory redundancy payment is if you have been made permanently redundant from a company without being offered suitable alternative work , which is defined by: The similarity of the new role to your current job The terms of the new role How closely your skills and circumstances align with those required by the new role The similarity of the pay, status, hours and location with your former job If you believe that your employer has the option of suitable alternative employment available yet they have declined to offer it to you, your redundancy may constitute unfair dismissal.

You may also be able to claim for redundancy payments if you have been made redundant temporarily for either: More than four consecutive working weeks More than six non-consecutive weeks within a period of 13 weeks If you are claiming temporary redundancy, you must write to your employer and make a claim within four weeks of your last non-working day within the temporary redundancy period.

When are redundancy payments not applicable? There are many situations in which employees are not entitled to receive a statutory redundancy payment, including: If your employer offers to allow you to resume work Your employer offers you suitable alternative work which you refuse If your employer is offering you what they describe as suitable alternative employment and you believe it is not a suitable alternative, you can make a claim to an employment tribunal to resolve the matter.

These roles include: Former registered dock workers and share fishermen Crown servants Members of the police or armed forces Apprentices who have not been employed at the end of their training Domestic servants employed by immediate family members Who is responsible for paying a redundancy payment? What to do if your redundancy payment is delayed? Subscribe to the newsletter?



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