Redundancy pay is worked out on the basis of age, weekly pay and length of service (employees must have worked for you continuously for 2 years or more to qualify). They will be entitled to:
- 0.5 week’s pay for each full year of service under the age of 22
- 1 week’s full pay for each full year of service over 22 and under 41
- 1.5 week’s full pay aged 41 and over
However, if you were made redundant on/after 6th April 2022, pay is capped at £571 (£594 in Northern Ireland) per week. Length of service is capped at 20 years.
The maximum amount of statutory redundancy pay an employee can receive is £17,130 (£17,820 in Northern Ireland).
If you were made redundant before 6th April 2022, these amounts will be less.
