This award compensates the applicant for the loss of a secure job. The payment is calculated in accordance with a set formula which is the same as the basic award for unfair dismissal.

In order to bring a claim for redundancy, the applicant must:

• be an employee
• have been dismissed. This includes constructive dismissal i.e. where the employee resigns
• have been continuously employed for 2 years
• not be within an excluded class
• have complied with the resolution procedures, if applicable

The reason for the dismissal must also be redundancy. This means job redundancy (closure of the employer’s business), place of work redundancy (the place where the employee is employed is being relocated) or employee redundancy (the requirement for employees to do work of a particular kind has ceased or diminished).

Since a redundancy payment is designed to compensate the employee for the loss of their job, if the employee is re-employed by their employer or by an associated employer, they do not need compensation and may not be entitled to a redundancy payment. If the employee rejects an offer of a new job, whether they are entitled to redundancy payment turns on two issues:

• the suitability of the alternative offered; and
• the reasonableness of the employee’s refusal

A trial period in the new job may be offered.

Working back from the date of termination, the employee is entitled to:

• one and a half weeks’ gross pay for each complete year of continuous service in which the employee was over 41
• one week’s gross pay for each earlier year in which the employee was 22 or over
• half a week’s gross pay for each earlier year

The total number of years to be taken into account is subject to a maximum of 20.

A week’s pay is subject to a statutory maximum of £380. If you would like to speak to us about redundancy, please call 01562 514867, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or contact us using the contacts page of our website.