Statutory Redundancy Pay
Statutory Redundancy Pay is a minimum payment employees are entitled to if they are made redundant after at least two years of continuous employment. The amount depends on the employee's age, length of service, and weekly pay (capped at £751/week in 2025/26). Employees may also be entitled to notice pay and any outstanding holiday pay. Employers cannot discriminate in their selection for redundancy.
Statutory Redundancy Pay (SRP) is calculated using a formula based on age, length of service (up to 20 years), and weekly pay (capped at £751/week from April 2026). Employees get 0.5 week's pay for each year worked under age 22; 1 week's pay for each year aged 22–40; and 1.5 weeks' pay for each year aged 41 or over. The maximum SRP is £22,530 (20 years × 1.5 × £751). Entitlement starts after 2 years' continuous employment. SRP is tax-free. Employees are also entitled to notice pay and accrued holiday pay. Employers who claim not to have the funds to pay SRP can be reported to the Insolvency Service's Redundancy Payments Service. Dismissal selection criteria must not be discriminatory — selecting part-time or pregnant workers for redundancy first can constitute automatic unfair dismissal.
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