FACTS ABOUT REDUNDANCY PAY
If you have worked for your employer for at least two years then, if you are made redundant, you may be entitled to redundancy pay. The value of redundancy pay you are entitled to will be based on your age, weekly pay and how long you have been employed by that employer.
- You are entitled to a redundancy payment if you are an employee who has worked continuously for that employer for at least two years and you are being made redundant.
- Redundancy pay is also payable when a fixed-term contract of two years or more finishes and is not renewed because of redundancy.
- Your employer should automatically pay your redundancy pay to you – you do not have to claim it. If your employer refuses to give you redundancy pay when you think you are entitled to it, you should formally write to them requesting payment. If they refuse, or cannot make the payment you could make an appeal to an Employment Tribunal.
- If your employer goes bust, the insolvency practitioner looking after the business should send you the necessary forms for claiming any money you are owed. If you don’t receive the forms, write to the insolvency practitioner setting out your claim. In an insolvency, there will be no guarantee that the business can pay what you are entitled to. That’s why the Government has set up special arrangements to ensure that you receive a basic minimum of the money owed from a National Insurance Fund. If this applies, the insolvency practitioner should tell you how to claim payments from the National Insurance Fund through the Redundancy Payments Office and HM Revenue & Customs.
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