Statutory Redundancy Payment Claim

Statutory Redundancy Pay

A Statutory Redundancy Payment (SRP) is a legal entitlement for employees in the UK who are made redundant, provided they meet certain eligibility criteria. Here’s a guide to help you understand and claim statutory redundancy pay:

Eligibility for Statutory Redundancy Pay

To qualify for SRP, you must:

1. Be an employee (not self-employed or a contractor).

2. Have worked for your employer for at least 2 years continuously.

3. Be dismissed due to redundancy (e.g., your job no longer exists, the business is closing, or there’s a reduced need for employees).

You won’t be eligible if:

• You’re a casual worker or agency worker (unless you meet specific criteria).

• You’ve been offered and refused suitable alternative work by your employer.

• You’re dismissed for misconduct.

Statutory Redundancy Pay

The amount of SRP depends on:

1. Your age.

2. Your length of service (up to a maximum of 20 years).

3. Your weekly pay (capped at £643 per week as of April 2024).

Redundancy pay calculation

The calculation is as follows:

• For each full year of employment:

  • Aged 18–21: 0.5 week’s pay.

  • Aged 22–40: 1 week’s pay.

  • Aged 41 and over: 1.5 weeks’ pay.

Example:

• If you’re 35, have worked for 5 years, and earn £500 per week:

  • 5 years x 1 week’s pay = 5 x £500 = £2,500.

Statutory Redundancy Pay Claim

1. Check Your Redundancy Letter:

   • Your employer should provide written notice of redundancy, including details of your SRP.

2. Calculate Your Entitlement:

   • Use the UK government’s redundancy pay calculator.

3. Receive Payment:

   • Your employer should pay your SRP along with your final wages, holiday pay, and any notice pay (if applicable).

4. If Your Employer Refuses to Pay:

   • Contact Acas (Advisory, Conciliation and Arbitration Service) for free advice.

   • You may need to make a claim to an employment tribunal.

   • Use our Statutory Redundancy Template to make a claim.

Redundancy Rights

In addition to SRP, you may be entitled to:

• Notice pay: Either worked or paid in lieu.

• Holiday pay: For any accrued but untaken holiday.

• Unfair dismissal claim: If you believe the redundancy was unfair or discriminatory.

If Your Employer Cannot Pay redundancy pay

If your employer is insolvent and cannot pay your SRP, you can claim from the Redundancy Payments Service (RPS). You’ll need to:

1. Complete the RP1 form (available on the UK government website).

2. Submit it to the RPS.

Redundancy Pay Deadlines

• You must claim SRP within 6 months of your employment ending.

• If you miss the deadline, you may lose your entitlement unless you have a valid reason.

Redundancy Pay Help

• Acas Helpline: 0300 123 1100 (free advice).

• Citizens Advice: Visit Citizens Advice for guidance.

• GOV.UK: Official information on redundancy pay: GOV.UK Redundancy Pay.

If you’re unsure about your rights or need help with a claim, seek professional advice or contact Acas for support.

Make a redundancy pay claim

If you are owed statutory redundancy payment and you want to make a claim for your statutory redundancy payment, then simply use our statutory redundancy payment claim template. Once you have filled out the template then simply attached to an ET1 Form and submit online. The statutory redundancy payment is calculated using your notice pay along with how many weeks you have worked for your employer.

If your employer is insolvent you can claim some of the money your employer owes you from the Redundancy Payments Service - this is a government service. You can claim: up to 8 weeks' unpaid wages. But you will have to obtain a judgement. So use the statutory redundancy payment template and get started. If you need help to finalise one of our free Particulars of Claim Templates we can coach you or check it for you.