Statutory Redundancy Payment Calculator - work out how much statutory redundancy pay you could be entitled to.

Click here to launch the calculator

This calculator estimates the statutory redundancy payment due to an employee based upon their age, earnings and length of service.

The term "redundancy" refers to the dismissal of an employee for a reason that is not related to the behaviour or conduct of the individual employee. Examples include companies who run into financial difficulties or restructure and close down or relocate certain operations. Often redundancies are "collective" in nature, and employers are obliged to consult with their employees before putting such plans into effect. If an employee is dismissed for reasons of conduct, capability or simply retires, redundancy payments are not applicable.

Many large employers will provide termination packages far in excess of the minimum, but many smaller employers do not. Anyone who has been employed for over two years is entitled to a Statutory Redundancy payment, and this is calculated according to the following formula:

Half a weeks pay for each year of service where the employee was aged under 22 during the year.
A full weeks pay for each year of service where the employee was aged between 22 and 40 during the year.
A week and a half's pay for each year of service where the employee was aged 41 or over during the year.

Please note that this is calculated from the START of the employment. For example if you started employment aged 20 and were made redundant at age 35, you would be entitled to 2 x half a weeks pay and 13 x a full weeks pay. This is calculated using only WHOLE years of employment. In this example, if you worked for 13 years and 9 months, the payment would be calculated using 13 years.

It should be noted that the payments are calculated backwards from the date of leaving, not forwards from the date of joining. For example, if you left employment at age 53 with 15 years of service, you would benefit from the majority of the years being paid at the higher rate.

Other points

The maximum number of years is capped at twenty.
The maximum weekly pay is currently capped at £719. This increases each February in line with inflation.
If your earnings fluctuate from week to week, you need to average this out over a period of twelve weeks.

This means that the maximum possible statutory redundancy payment is £21,570 but is usually a lot less. This is non-taxable, although redundancy payments above the statutory minimum may be liable to national insurance or income tax charges.

For more information on statutory redundancy requirements, follow this link.

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