Is there an age limit for voluntary redundancy?

There is no upper or lower age limit on the entitlement of statutory redundancy pay. Your employer will have to pay you the statutory minimum redundancy payment even if you are under 18.

How is voluntary redundancy pay calculated?

As a general guideline, minimum redundancy entitlements (and, therefore, the minimum amount you can be offered as voluntary redundancy pay) based on your age are as follows: Half a week’s pay for each full year served (under 22 years old) One week’s pay for each full year served (between 22 and 41 years old)

How long do you have to work before you get statutory redundancy?

After two years with your employer, you’ll qualify for a minimum statutory redundancy payment. If you’ve worked there for less than two years, you’ve no right to any recompense. For those who have at least 24 months’ continuous service, your entitlement depends on your age and longevity at the company.

How much do you get if you are made redundant?

If you are made redundant you may have a package in place. But not necessarily. Use this calculator to see how much the law says your entitled to. The maximum weekly pay taken into account for this calculation is £450. The number of qualifying years is also capped – at 20. Anything above these figures does not count towards your redundancy pay.

What do you get if you are made redundant in Northern Ireland?

A redundancy payout is essentially compensation for your loss of work. Here’s how it works: You get statutory redundancy pay as a minimum, provided you’ve worked for your employer for two years or more. The limit is currently £538 a week (£560 in Northern Ireland) if you were made redundant on or after 6 April 2020.

What are the procedures for collective redundancy in the UK?

In addition to the provisions in the legislation as regards collective redundancies your employer must follow certain fair procedures. These include giving you at least 2 weeks’ notice and paying your redundancy payment on the date of dismissal. There are also various procedures when selecting people for redundancy, alternative work and time off.

How many employees are eligible for voluntary redundancy?

Generally, for an employee to be eligible for redundancy payment, they must have been working with the business for at least one year and the business needs to have fifteen or more employees at the time, including the employees whose roles are being made redundant.

How long do you have to work before you get redundancy pay?

You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more. Length of service is capped at 20 years. Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.

Is it possible to avoid unfair dismissal with voluntary redundancy?

Voluntary redundancy will also avoid the risks associated with the breach of unfair dismissal provisions. However, it is important to note that voluntary redundancy is not a way to avoid paying for redundancy payments and other entitlements owed to the affected employee. Payment of entitlements is still required.

Is the UK going to have a redundancy crisis?

These losses will inevitably have a knock-on effect on employment in the private sector, making the idea of taking redundancy rather less attractive. Howard Archer, chief UK economist for IHS Global Insight, says he expects a “clear deteriorating trend” in employment during the next two years.