Complete guide to statutory redundancy rights. ERA 1996 redundancy pay formula, 2-year qualifying service, consultation obligations (s.188 TULRCA for 20+), unfair selection claims, and how to negotiate enhanced redundancy.
Statutory redundancy pay = (age × service in complete years × weekly pay cap). Weekly pay cap: £643/week (April 2024). Maximum statutory redundancy: £20,800 (16 weeks x £643 for someone 41+ with 20+ years). You must have 2 years' continuous service to claim. For 20+ employees, employers must consult via s.188 TULRCA (failure to consult is unfair dismissal). If you believe selection was unfair or based on discrimination, claim unfair dismissal at tribunal. Enhanced redundancy is negotiable - push for at least 2-3 weeks' pay per year service.
Calculation: (age group weeks × complete years of service × weekly pay capped at £643/week). Age 22-40: 1 week per year. Age 41+: 1.5 weeks per year. Example: age 45, 8 years service = (1.5 x 8 x £643) = £7,716. Maximum 20 years counts - cap at £20,800 (1.5 x 20 x £643 approximately).
Check if your employer consulted on redundancy (s.188 TULRCA applies to 20+ redundancies). Employer must consult with employees/reps for at least 30-90 days depending on number affected. Failure to consult is unfair dismissal (claim at tribunal). Collect evidence: meeting minutes, consultation letters, timeline.
Statutory redundancy is minimum. Negotiate enhanced package: aim for 2-3 weeks' pay per year service (double or triple statutory). Offer to waive claims in exchange for enhanced package? Larger companies often pay more. Get offer in writing before signing settlement agreement.
If selection was unfair (no fair criteria, based on discrimination, cheaper replacement hired), file tribunal claim for unfair dismissal. ACAS early conciliation first (mandatory). Tribunal can award basic award (statutory redundancy) plus compensatory award for unfair process.
Your role was made redundant due to company restructure, department closure, or business contraction. Claim statutory redundancy (and enhanced if negotiated). If you had 2+ years service and employer followed fair procedures, you're entitled to statutory payment.
You were selected when others with similar roles weren't (no fair selection criteria). Claim unfair redundancy selection at tribunal. Tribunal will assess if selection was fair and reasoned. Can award statutory redundancy plus unfair dismissal compensation.
Your employer made 20+ redundancies without consulting employees/unions (s.188 breach). This is automatic unfair dismissal. Even if you were made redundant for valid reason, failure to consult makes it unfair. Claim unfair dismissal plus statutory redundancy.
Role was made "redundant" but similar position created for lower-paid worker. This suggests redundancy was pretextual - real reason was cost-cutting. Claim unfair dismissal based on unfair redundancy selection.
You were selected for redundancy because of disability, age, race, gender, or other protected characteristic (not objective selection). Claim unfair dismissal plus discrimination claim (Equality Act 2010). No service requirement for discrimination - claim regardless of tenure.
Employer underpaid your redundancy (calculated weekly pay at lower rate, miscounted service years). Challenge calculation. Statutory formula is fixed - if they underpaid, claim the difference plus interest (8% per annum from payment date).
Use FightingBack's WorkRights tool to calculate statutory redundancy and file tribunal claim if selection was unfair.
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