Entitlement to statutory redundancy payment
Entitlement to statutory redundancy payment

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

  • Entitlement to statutory redundancy payment
  • Statutory entitlement
  • Is the worker an employee
  • The 'relevant date'
  • Period of continuous employment
  • Dismissal
  • By reason of redundancy
  • Nature of a redundancy payment
  • Calculation
  • Written statement
  • more

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

See Precedents:

  1. ET1 grounds of claim—redundancy payment

  2. ET3 grounds for resisting claim—redundancy payment

  3. Receipt—redundancy payment

Statutory entitlement

A worker is entitled to a redundancy payment when:

  1. he is an employee

  2. he has been continuously employed for not less than two years

  3. he has been dismissed

  4. the dismissal was by reason of redundancy

An employee may also claim a statutory redundancy payment if he is laid off (as defined) or is put on short-time working (as defined) for a specified number of weeks. For further information, see Practice Note: Redundancy payments for lay-offs and short time.

Is the worker an employee

A worker must be an employee before he can claim a redundancy payment. Some types of worker who would normally be excluded are brought within the redundancy payments provisions by special legislation, and other classes of worker are excluded.

Eligibility

The definition of 'employee' for these purposes is 'an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment'. Contract of employment means either a contract of service or a contract of apprenticeship (see Practice Note: Employee status—Statutory definitions of 'employee').

The effect of this is that an apprentice will be entitled to a redundancy payment (provided