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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Other questions we get asked about Support

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How do I legally lay off an employee?

Check the employment contract for a layoff clause. Provide written notice explaining the reason for the layoff. Offer statutory guarantee pay if eligible. Consult with the employee and explore alternatives (e.g., reduced hours). If the layoff is extended, consider redundancy procedures. The employee can also request redundancy. Employees can apply for redundancy and claim redundancy […]

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Can we dismiss quickly during probation?

Probation allows faster decisions but still requires a fair process: concerns explained, a chance to respond, notice/pay handled correctly, and care taken to avoid discrimination.

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What is the reason we calculate part-time employees’ holiday entitlement in hours rather than days?

Part-time employees’ holiday entitlement is calculated in hours rather than days to ensure fairness and accuracy, as their working hours may vary. This method accounts for their specific work patterns, making it easier to calculate their pro-rata holiday entitlement based on the actual hours they work compared to full-time employees. For free managers guides and […]

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We’re a start-up with nothing in place. What’s legally essential?

Written employment contracts, core policies (disciplinary, grievance, absence, equality, data protection), Ro-work checks, payroll and auto-enrolment, Basic H&S, and compliant onboarding. Add a staff handbook as you grow.

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What is considered workplace harassment?

Workplace harassment is any unwanted conduct related to a protected characteristic (e.g., age, race, sex, disability, religion) that creates an intimidating, hostile, degrading, humiliating, or offensive environment. Harassment can include verbal, physical, or non-verbal behaviour and can involve bullying, inappropriate jokes, or discriminatory comments  (For a free Managers Guide , go to  How To HR  […]

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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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