FAQs

What are the legal requirements for redundancy pay?

Statutory redundancy pay if employees have at least 2 years of continuous service.

The amount paid depends on age, years of service, and weekly salary (up to a cap). The formula is:
half a week’s pay for each full year you were under 22
one week’s pay for each full year you were 22 or older, but under 41
one and half week’s pay for each full year you were 41 or older

Length of service is capped at 20 years.

The maximum weekly pay used for calculation is capped at £700 and tax free up to £30K (2024 figure).

Refer to individual contracts as enhanced redundancy pay may be offered.

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What are the legal requirements for redundancy pay?

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If an employee is suspended pending investigation and they produce a fit note saying work related stress which process do I now follow?

You continue the suspension process, as a fit note for work-related stress does not override the suspension. However, you should acknowledge the fit note, offer support, and manage the investigation sensitively.

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