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Redundancy Appeal

Career Advice and Help
If you are made redundant you may be entitled to a redundancy payment, to find out more read below.
If you have been made redundant then you have the right to a redundancy payment. If you have worked continuously for your employer for at least two years. Statutory redundancy pay isn't taxable. You may also be entitled to redundancy pay when a fixed-term contract of two years or more expires and is not renewed because of redundancies.
A redundancy payment isn't due to you if work picks up and your employer offers to keep you employed. Also it will not be available if your employer offers you suitable alternative work which you refuse without good reason. If you leave your job for a new one before the end of your notice period your payment could be affected.
Redundancy pay can be claimed from your employer if you have been temporarily laid off for more than four weeks in a row (or six weeks in a 13 week period).
As well as a redundancy payment, your employer should give you proper notice of termination of employment (or pay in lieu of notice). Details of the notice period will be in your contract which you should have received and signed before accepting the job.
There may be an arrangement in your contract for how redundancy pay will be calculated and paid to you. If this gives you less than the statutory pay, the statutory amount applies. The first £30,000 of any termination payment is tax-free. More information on whether elements of the payment such as pay in lieu of notice (PILON) is taxable is available from HM Revenue and Customs.
The interactive calculator can tell you how much statutory redundancy pay you might be entitled to.

The total amount you should be paid for redundancy will be based on:
  • How long you’ve been continuously employed
  • Your age
  • Your weekly pay, up to a legal limit (current maximum £330)

You’ll get:*
  • Half a week’s pay for each complete year of continuous service below the age of 22
  • A full week’s pay for each complete year of continuous service between the ages of 22 and 40
  • A week and a half’s pay for each complete year of continuous service above the age of 41

If you were made redundant before 1 October 2006:
  • Service under the age of 18 is not counted
  • Your redundancy payment is reduced by one-twelfth for each complete month you were over the age of 64
  • You do not get any redundancy payment if you were over 65
*these figures where taken from the HM Revenue & Customs website December 2008
If you've been made redundant, your employer will normally pay you either on the last day of your notice period or shortly afterwards, or on your next pay day.

However if you haven't been paid or if the amount you have been paid is too low you should try to sort the problem out directly with your employer. Firstly write to your employer explaining the problem and asking them for a full payment. Your employer is obliged to give you a written statement showing how any payment has been calculated.

If this doesn't work, you can apply to an Employment Tribunal. Always make a claim within six months; otherwise you might lose the right to a payment.
If your employer can not pay because they're insolvent, you might be able to get the money from the Government.
 The Insolvency Service website. For queries about redundancy in Northern Ireland  The Advisory, Conciliation and Arbitration Service (Acas)  The Labour Relations Agency (LRA) offers Your local Citizens Advice Bureau (CAB)  Solicitor or Advice Agency on contract conditions.

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