Statutory redundancy pay is the legal minimum that an employer is required to pay out when it comes to a redundancy agreement.
However, you can only qualify for statutory redundancy pay if you’ve worked with your current employer for a minimum of two years.
It’s calculated based on age, weekly pay, and the number of years you’ve worked for your employer – your weekly pay is based on the average amount earned over the 12 weeks before you receive your redundancy notice, including any regular overtime, bonuses, and commission.
You might get more than the minimum amount if it specifies otherwise in your contract, so it’s worth checking your employment contract to see if there’s anything relating to redundancy pay and agreements in there.
You should know that if your employer offers you a suitable alternative role and you reject it, you’re most likely NOT going to be eligible for statutory redundancy pay.
Statutory Redundancy Pay Calculator
There are plenty of redundancy pay calculators available, although you should always double-check the validity and credibility of them before proceeding.
The best way to check your statutory redundancy pay eligibility is to use the government’s statutory redundancy pay calculator, which will give the most accurate and up-to-date figures.
Your redundancy pay might be higher than the legal minimum but there is no requirement for that to be the case.
If you feel like you should be entitled to more, it could be worthwhile exploring whether a settlement agreement is possible.
While it’s unusual for an employee to ask for a settlement agreement, it’s not unheard of – and it may be a good idea if you’re entering a redundancy situation and you want a quick resolution.
A settlement agreement is where an employee agrees to waive their right to bring legal action against their employer, usually in exchange for a settlement payment.
This is often used in a redundancy arrangement, and it can be a positive outcome for both parties – the employee receives a bigger financial pay-out and perhaps receives other benefits, while the employer can move on from the situation and focus on running the business.
The first £30,000 of any settlement agreement or redundancy payment is tax-free, and any settlement agreement can include things such as:
- A termination payment
- Any remaining salary, notice pay, holiday pay, bonuses, and commission
- A written agreement for the employee to waive their right to bring legal action at a later date
- A signature by a solicitor or official representative
- A ‘non-derogatory clause’ where both the employee and employer agree not to say anything negative about each other
- A non-disclosure clause
Redundancy Solicitors Near Me
Redundancy is a difficult process. People who have been part of a business for many years are leaving the company through no choice of their own, and the uncertainty around your future is challenging.
Ensuring that you receive a fair settlement is crucial to the financial future of you and your family – but achieving that is easier said than done.
At Solicitors Near Me, we know how important it is to have expert employment solicitors to help achieve your goals – which is why we connect you with employment solicitors near you for FREE.
Yep, there’s no obligation to proceed with the solicitors we connect you with, and there’s absolutely no cost until you decide to proceed with them.
Redundancy Advice Near Me
Whatever your needs, there’s a solicitor near you that help you with redundancy legal advice…