Being told you are being made redundant can be unsettling. But redundancy is not simply a case of your employer ending your employment and handing you a final payslip.
Depending on your circumstances, you could be entitled to redundancy pay, notice pay, holiday pay and more. You also have rights during the redundancy process itself.
Here’s what you need to know.
Redundancy pay
If you’ve worked for your employer for at least two years, you may qualify for statutory redundancy pay.
The amount depends on your:
- age;
- length of service; and
- weekly pay.
You may also be entitled to an enhanced redundancy payment if your employer has a contractual redundancy scheme or offers an enhanced package.
So do not assume the statutory figure is all you are entitled to.
Notice pay
Redundancy pay and notice pay are two different things.
Your employer must usually give you notice or make a payment in lieu of notice (PILON).
Check your contract carefully. Your contractual notice period may be longer than the statutory minimum.
If you receive benefits such as private medical insurance, a company car or other perks, check how these will be treated during your notice period or under a PILON.
Unused holiday
Have you built up holiday that you have not taken?
You should normally be paid for accrued but untaken holiday when your employment ends.
Your final pay could therefore include:
- salary up to your termination date;
- holiday pay;
- notice pay; and
- redundancy pay.
It’s worth checking the figures carefully.
Outstanding wages
It follows that any outstanding wages owed to you must be made payable. This would also include any confirmed bonus payments.
Redundancy Procedure
We have previously written information on how an employer should conduct a redundancy procedure. You can read more by following this link: https://lincslaw.co.uk/blog/redundancy-procedure-has-a-genuine-redundancy-situation-occurred/
How Can Lincs Law Help?
Lincs Law provide bespoke Employment Law advice. We are happy to have an initial conversation with you to learn of your Employment Law concerns and, thereafter, we offer an initial Fixed Fee Consultation; https://lincslaw.co.uk/fees/employees/
If you would like to Contact Us, please email us at ContactUs@lincslaw.com or telephone 01522 440512.
Lucy Stones
Associate Employment Solicitor
Lincs Law
Tags: bonus payments Contractual payments enhanced redundancy pay Holiday Pay Lincs Law lucy stones Notice Pay redundancy Statutory Redundancy Payments