Claiming Statutory Redundancy Pay
How to claim statutory redundancy pay after two or more years' continuous employment ends in redundancy. Explains the age-banded formula, the current weekly pay cap, and what to do if an employer refuses to pay or becomes insolvent, including claiming from the Insolvency Service or an Employment Tribunal.
Overview
Statutory redundancy pay is a legal minimum payment for employees dismissed because their role has genuinely ceased to exist. To qualify, you must have at least two years' continuous service with the same employer and be an employee rather than a self-employed contractor. The amount depends on age and length of service: half a week's pay for each full year worked under 22, one week's pay for each full year aged 22 to 40, and one and a half weeks' pay for each full year aged 41 or over, with length of service capped at 20 years. Weekly pay used in the calculation is itself capped — for dismissals from 6 April 2026 the cap is £751 a week, giving a maximum statutory award of £22,530; earlier dismissals use lower historic caps. Employers should pay automatically with final wages. If an employer cannot pay because it is insolvent, the employee can claim from the Insolvency Service's Redundancy Payments Service. If an employer simply refuses to pay, the employee can bring an Employment Tribunal claim, but ACAS Early Conciliation must be attempted first, and the claim must be issued within six months of the dismissal. This guide covers England & Wales.
Who Can Use This Process
- You have been continuously employed for at least 2 years
- You have been dismissed by reason of redundancy (the job has ceased to exist)
- You are an employee (not a self-employed contractor)
Step-by-Step Process
Check Your Eligibility
Confirm you meet the qualifying conditions: 2+ years' continuous service, dismissed for redundancy, and you are an employee. Agency workers and some other categories may not qualify.
- Voluntary redundancy also qualifies if you were genuinely selected for redundancy
Calculate Your Entitlement
Statutory redundancy pay is calculated based on your age, weekly pay (capped at £751 per week from April 2024), and length of service. Half a week's pay for each year under 22; one week's pay for each year aged 22–40; one and a half weeks' pay for each year aged 41+. Maximum 20 years' service counts.
- Use the GOV.UK redundancy pay calculator for an estimate
- Your contract may provide for enhanced redundancy pay above the statutory minimum
Request Payment from Your Employer
Your employer should pay statutory redundancy pay automatically as part of your final pay. If they do not, write to them requesting payment and give them a reasonable deadline.
Claim from the Insolvency Service (if employer insolvent)
If your employer is insolvent and cannot pay, you can claim redundancy pay from the Redundancy Payments Service (part of the Insolvency Service). Apply online within 6 months of your dismissal.
Employment Tribunal Claim
If your employer refuses to pay and is not insolvent, you can bring a claim in the Employment Tribunal within 6 months of the relevant date. ACAS Early Conciliation is required first.
Costs
Important Warnings
The 6-month time limit is strict — if you miss it, you may lose your entitlement.
Refusing a suitable alternative role offered by your employer may disqualify you from redundancy pay.
Statutory redundancy pay is tax-free up to £30,000.
Useful Links
Frequently asked questions
- How long does the claiming statutory redundancy pay process take?
- The end-to-end timeline depends on which stage you're at. Common steps run on these timeframes: "Payment should be made with final wages"; "Claims typically processed within 3–6 weeks"; "Claim within 6 months". Add court / counterparty response time on top — disputed matters can run months longer than the bare minimum.
- How much does it cost?
- Main outlays are: Tribunal claim — Free; ACAS Early Conciliation — Free. Court fees often qualify for Help with Fees remission if you're on a low income. Solicitor fees are extra and vary widely — many matters can be done as a litigant in person.
- What are the most common mistakes to avoid?
- Watch out for: The 6-month time limit is strict — if you miss it, you may lose your entitlement.; Refusing a suitable alternative role offered by your employer may disqualify you from redundancy pay.; Statutory redundancy pay is tax-free up to £30,000.. If you're unsure on any of these, get advice from a regulated solicitor or a free service like Citizens Advice before acting.
- Where can I find the official forms and guidance?
- The official sources are: Redundancy pay calculator (GOV.UK); Claim redundancy pay from the Insolvency Service. Always use the forms / guidance from the issuing authority's own site — third-party copies can be out of date.
- Can I do this myself without a solicitor?
- Yes — many people complete this kind of matter as a litigant in person. The site walks through each step in plain English. A solicitor is recommended if: large sums are at stake, the other side has legal representation, the matter involves criminal liability, children, immigration, or you're unsure on any procedural deadline. Free advice is available from Citizens Advice, Law Centres, and (for some matters) LawWorks pro bono clinics.
Part of our Employment Disputes hub
Pre-claim grievance through ACAS Early Conciliation, ET1, and Employment Tribunal hearing under the post-ERA 2025 regime.