Redundancy Pay Claims Guide
If you have been made redundant with at least 2 years of service and your employer has not paid you statutory redundancy pay, you can claim this at an employment tribunal. This guide explains the eligibility requirements, the statutory calculation formula, and the process for submitting your claim.
Quick Reference
What is a Redundancy Pay Claim?
A redundancy pay claim is a statutory right under the Employment Rights Act 1996 s.135. If you are dismissed by reason of redundancy after at least 2 years of continuous employment, you are entitled to a statutory redundancy payment. Redundancy is defined in s.139 as a situation where the employer's requirement for employees to do work of a particular kind has ceased or diminished, or is expected to cease or diminish.
If your employer has failed to pay you this entitlement, you can bring a claim to the employment tribunal within 6 months of the date your employment ended. The tribunal will determine whether you are entitled to payment and calculate the amount due based on your age, service, and weekly pay.
What You Need to Prove
Statutory Redundancy Pay Calculation
Statutory redundancy pay is calculated using a formula based on your age, length of service, and weekly pay:
- 0.5 week's pay for each full year of service when you were under 22 years old
- 1 week's pay for each full year of service when you were aged 22 to 40
- 1.5 weeks' pay for each full year of service when you were aged 41 or older
The calculation has two important limits: only the last 20 years of service count, and weekly pay is capped at £719 (from 6 April 2025). This means the maximum statutory redundancy payment is £21,570 (30 weeks at £719). Your age is calculated at the date your employment ended.
Unfair Redundancy Selection
Even where a genuine redundancy situation exists, the selection process must be fair. If your employer used unfair selection criteria, failed to consult properly, or selected you for a discriminatory reason, this may constitute unfair dismissal in addition to any entitlement to redundancy pay.
Examples of unfair selection include:
- Selecting you because you are pregnant or on maternity leave
- Selecting you because of trade union membership or activities
- Using criteria that are indirectly discriminatory (such as length of service that disadvantages women)
- Selecting you for whistleblowing or asserting statutory rights
- Failing to apply selection criteria objectively or consistently
If you believe the selection was unfair, you should consider bringing both a redundancy pay claim and an unfair dismissal claim. These have different time limits (6 months vs 3 months) and different remedies.
Eligibility Requirements
To claim statutory redundancy pay, you must meet the following requirements:
- Employee status: You must have been an employee (not self-employed or a worker without a contract of employment)
- 2 years continuous service: You must have at least 2 years of continuous employment with the same employer, ending on the relevant date
- Dismissed by reason of redundancy: Your dismissal must be for a genuine redundancy reason as defined in ERA 1996 s.139
- Not already paid: Your employer has not already paid you the statutory redundancy payment (or has underpaid)
- Within time limit: You must submit your claim within 6 months of the date your employment ended
How to Make Your Claim
Notify ACAS Early Conciliation
Contact ACAS within 6 months of your employment ending. You must complete early conciliation before submitting an ET1. ACAS will pause the time limit while they attempt to resolve your claim.
Gather Your Evidence
Collect your employment contract, payslips, redundancy consultation documents, selection criteria (if applicable), any correspondence about redundancy, and calculate your statutory redundancy entitlement. Note any alternative roles that were not offered to you.
Generate Your Particulars of Claim
Use ET1 Claim to create a professionally structured Particulars of Claim. Include the redundancy circumstances, your service dates, the statutory calculation, and any issues with selection or failure to offer suitable alternatives.
Submit Your ET1 Form
Complete the ET1 form on the government portal, attach your Particulars of Claim, and ensure submission before the time limit expires (remembering to account for the ACAS extension).
Prepare for the Hearing
Review the employer's ET3 response, prepare your witness statement, organize your documentary evidence, and be ready to explain your service, the redundancy situation, and why you are entitled to payment.
Common Issues in Redundancy Pay Claims
Continuous Service Calculation
Your 2 years of continuous service must be with the same employer. If you have worked for multiple employers within a group, or if there was a TUPE transfer, continuity may be preserved. Certain breaks in employment (such as for pregnancy or industrial action) do not break continuity. Always calculate your start date carefully.
Suitable Alternative Employment
Under ERA 1996 s.141, if your employer offers you suitable alternative employment before your redundancy takes effect and you unreasonably refuse it, you may lose your entitlement to statutory redundancy pay. The alternative role must be suitable (considering skills, status, pay, and location) and you must have a reasonable period to consider it (usually a trial period).
Redundancy vs Other Reasons for Dismissal
Your employer may argue that you were dismissed for misconduct or capability, not redundancy. If the real reason was redundancy but the employer fabricated another reason to avoid paying, this is both a redundancy pay issue and an unfair dismissal issue. Evidence of the genuine reason for dismissal is critical.
Enhanced Contractual Redundancy
If your contract provides for enhanced redundancy terms above the statutory minimum, a claim for the difference between what you were paid and the contractual entitlement is an unlawful deduction from wages claim or a breach of contract claim, not a statutory redundancy pay claim. These have different legal tests.
Tips for a Stronger Claim
- Check your calculation carefully: Use the statutory redundancy calculator to verify your entitlement. Remember the weekly pay cap (£719 from 6 April 2025) and the 20-year service limit. Small errors in dates or age can affect the amount.
- Request selection criteria in writing: If you were selected for redundancy from a pool, ask your employer for the selection criteria and scoring matrix. This is important if you believe the selection was unfair or discriminatory.
- Document suitable alternative employment: Keep records of any alternative roles that existed within the organization. Employers have a duty to consider offering suitable alternatives before making you redundant.
- Consider an unfair dismissal claim alongside: If the redundancy selection was unfair, discriminatory, or procedurally flawed, you may have both a redundancy pay claim and an unfair dismissal claim. These are separate remedies with different compensation limits.
- Note the longer 6-month time limit: Redundancy pay claims have a 6-month time limit, not the usual 3 months for unfair dismissal. However, you should still act promptly to preserve evidence and ensure timely submission.
- Check for enhanced contractual redundancy: Some contracts offer enhanced redundancy terms above the statutory minimum. If your employer offered enhanced redundancy but you dispute the amount, this is a breach of contract claim, not a statutory redundancy claim.
Time Limits for Redundancy Pay Claims
The time limit for redundancy pay claims is 6 months from the date your employment ended (the "relevant date" under ERA 1996 s.145). This is longer than the 3-month time limit for unfair dismissal, but you should still act promptly.
You must complete ACAS early conciliation before submitting your ET1. The early conciliation period extends the time limit: if you notify ACAS on day 1, you have until at least one month after the end of early conciliation to submit, or the remainder of the 6-month period plus the conciliation period, whichever is longer.
The tribunal has discretion to extend the time limit if it was "not reasonably practicable" to present the claim in time, but this is a strict test. Do not rely on an extension being granted.
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