Your Employer Will Not Pay Statutory Redundancy
If you have been made redundant and your employer refuses to pay your statutory redundancy entitlement — or is insolvent and cannot pay — this page explains how to calculate your entitlement, how to enforce it, and how to claim from the Redundancy Payments Service if the employer is insolvent.
Quick Answer
You are entitled to statutory redundancy pay if you have at least 2 years' continuous employment and have been genuinely made redundant. The weekly pay is capped at £700 (2026). If your employer refuses to pay, you can issue an Employment Tribunal claim within 6 months of termination. If the employer is insolvent, apply to the Redundancy Payments Service (RPS) — the government will pay your statutory entitlement directly.
Full Explanation
Statutory redundancy pay is a legal entitlement under the Employment Rights Act 1996 (ERA 1996) ss.135–164 for employees with at least 2 years' continuous service who are genuinely made redundant. The calculation is based on age and length of service: 0.5 week's pay for each year of service under age 22; 1 week's pay for each year of service between 22 and 40; 1.5 weeks' pay for each year of service aged 41 or over. Weekly pay is subject to a statutory cap (£700 per week in 2026) and the maximum total entitlement is capped at 20 years' service.
An employer who dismisses an employee by reason of redundancy is legally required to pay statutory redundancy pay unless they can show the employee lacked 2 years' continuous service, that the dismissal was not by reason of redundancy, or that the employee unreasonably refused a suitable alternative employment offer.
If the employer refuses or ignores a demand for payment, the employee must bring an Employment Tribunal claim within 6 months from the effective date of termination (ERA 1996 s.164) — longer than the usual 3-month unfair dismissal limit. ACAS Early Conciliation is required before issuing the ET1.
Where the employer is insolvent and unable to pay, ERA 1996 s.182 allows the employee to apply directly to the Secretary of State through the Redundancy Payments Service (RPS) for the government to meet the statutory entitlement. The RPS will then seek to recover the payment from the insolvent employer's estate. The RPS also pays arrears of wages (up to 8 weeks, capped), notice pay, and holiday pay.
Note that statutory redundancy pay is the minimum. Many employees are entitled to enhanced contractual redundancy pay — the employer is bound by the contractual terms, and breach is actionable in the Employment Tribunal or County Court.
Legal Basis
- §Employment Rights Act 1996 ss.135–164 — statutory redundancy pay entitlement, calculation, and enforcement
- §Employment Rights Act 1996 s.182 — right to payment from the National Insurance Fund where employer is insolvent
- §Employment Rights Act 1996 s.164 — 6-month time limit for redundancy pay claims to Employment Tribunal
What To Do
Write a Formal Demand for Redundancy Pay
Send a formal letter to your employer citing Employment Rights Act 1996 s.135 and setting out your calculation of the statutory entitlement — stating your start date, end date, age during each year of service, and the capped weekly pay figure. Give the employer 14 days to confirm they will pay.
Contact ACAS for Early Conciliation
If the employer does not respond or refuses, notify ACAS for Early Conciliation before the 6-month time limit expires. ACAS will attempt to facilitate a settlement. If unsuccessful, they will issue an EC certificate allowing you to proceed to tribunal.
Issue an Employment Tribunal Claim (ET1)
Submit the ET1 form online at gov.uk/employment-tribunals, attaching your ACAS EC certificate. The claim should specify the statutory redundancy entitlement, how it was calculated, and the employer's refusal to pay.
Apply to the Redundancy Payments Service If Employer Is Insolvent
If your employer has entered administration, liquidation, or another insolvency process and cannot pay, apply to the Redundancy Payments Service using form RP1 online at gov.uk/claim-redundancy. You will need the insolvency practitioner's details and your employment records. The RPS aims to process claims within 6 weeks.
Important Deadlines
Important Warnings
The Employment Tribunal time limit for redundancy pay claims is 6 months from the effective date of termination. Do not delay.
If your employer has changed its business structure through a TUPE transfer, your continuity of employment is preserved. Do not accept an assertion that your service restarted after a business sale.
Statutory redundancy pay is tax-free up to £30,000. Contractual redundancy pay above statutory may be taxable.