Entitlement to statutory redundancy payment
Entitlement to statutory redundancy payment

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Entitlement to statutory redundancy payment
  • Statutory entitlement
  • Entitlement to a statutory redundancy payment for lay-off or short-time working
  • Is the worker an employee
  • Eligibility
  • Excluded employees
  • Dismissal for misconduct
  • The 'relevant date'
  • No notice, or less than required statutory minimum
  • Period of continuous employment
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit and IP completion day—implications for employment lawyers.

Coronavirus (COVID-19): The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020), SI 2020/814, which provide that employees who are furloughed under the Coronavirus Job Retention Scheme (CJRS) receive statutory redundancy pay, statutory notice pay and other entitlements based on their normal wages, rather than a reduced furlough rate, are considered in Practice Note: Coronavirus Job Retention Scheme—right to statutory redundancy and other termination payments.

An employee is entitled to a redundancy payment when they are dismissed by reason of redundancy.

Statutory entitlement

A worker is entitled to a redundancy payment when:

  1. they are an employee (see: Is the worker an employee below)

  2. they have been continuously employed for not less than two years at the ‘relevant date’ (see: The 'relevant date' and Period of continuous employment below)

  3. they have been dismissed

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