Eligibility

You must have at least 2 years' continuous service with the same employer to qualify for statutory redundancy pay (ERA 1996 s.155).

The formula

For each year of reckonable service, the multiplier depends on your age during that year (counting backwards from your age at the redundancy date):

  • Under 22: 0.5 weeks per year.
  • 22 to 41 inclusive: 1 week per year.
  • 42 and over: 1.5 weeks per year.

Maximum reckonable service: 20 years (most recent 20).

Weekly-pay cap: £700/week from 6 April 2025 (uplifted every April).

Worked example

You're 45, you've worked there 10 years, and you earn £1,000/week.

  • Years 1-4 (ages 45, 44, 43, 42) count at 1.5 weeks/year = 6 weeks.
  • Years 5-10 (ages 41 down to 36) count at 1 week/year = 6 weeks.
  • Total: 12 weeks.
  • Your weekly pay is capped at £700.
  • Statutory redundancy pay: 12 × £700 = £8,400 (tax-free).

Your contract may pay more. Always check our redundancy calculator for your exact numbers.