REDUNDANCY
PAYMENTS
FREQUENTLY ASKED
QUESTIONS
What is the current
weekly limit for redundancy pay?
The
statutory limit is £290.
How long will it
be before I can expect my money?
If
your employer is paying the redundancy, then it should be paid
on the last day that you work or as soon as is possible; if there
is to be any lengthy delay, then it must be agreed with the employee.
If the employee feels that they are having to wait too long, then
they can take the employer to an Employment Tribunal.
I have heard that
the law will soon be changing and I will be entitled to £1000
redundancy for each year worked
This
is not the case at present and it is not likely to change in the
foreseeable future.
How do I obtain a
copy of the notification form HR1 or claim form RP1?
Form
HR1 
(20Kb) and
Form RP1 (27Kb) may be downloaded from our website, or you can call
0845 145 0004 or email
us to request the appropriate form.
Do I pay tax and
NI on my redundancy payment?
There
are NO deductions on redundancy up to £30,000. For anything over
that amount, you must contact your local tax office.
Do I pay tax on my
notice pay?
Tax
may not be deducted from your notice pay in some circumstances;
it is advisable to contact your local tax office for clarification.
Am I entitled to
a redundancy payment if I work only a few hours a week?
It
does not matter how many hours a week you work; if you have worked
for the employer for two years or more since the age of 18, you
are entitled to redundancy payment.
I am a woman over
60. Am I entitled to redundancy payment?
You
are treated the same as a man and you can claim a redundancy payment
until you are 65, unless the company policy is for retirement,
for both men and women, at an earlier age.
How much notice of
redundancy am I entitled to?
The
statutory notice is one week for every complete year worked, up
to a maximum of 12 weeks. Where you have completed over one calendar
month but less than one year, you are entitled to one week's notice.
If your contract states differently, you should be paid for the
longer of the contract and statutory period unless the company
is insolvent.
What can I do if
I disagree with the redundancy payment?
In
the first instance you must contact your employer to see why there
is a discrepancy. If they do not amend the payment, then you have
the right to put your case to an Employment Tribunal, which must
be done within 6 months of being made redundant. You must make
an application on form IT I.
If I have been laid
off, can I still claim redundancy?
You
can request your redundancy after being laid off for 4 weeks consecutively
or for 6 weeks out of 13 and have received less than 1/2 a week's
pay. Your employer is obliged to pay the redundancy unless they
can offer you 13 weeks' work within 4 weeks.
I am entitled to
5 weeks' notice but the company has not paid me for it and it
is not insolvent
You
must apply to an Employment Tribunal in the first instance and
if you are awarded a decision and the employer still does not
pay you, then you can take the matter to the county court (or
in Scotland, the sheriff court).
I am an employer.
What is the consultation period if I make 30 people redundant?
The minimum consultation period required
is
20
- 99 employees - at least 30 days
100+
employees - at least 90 days
Am I entitled to redundancy payment?
You
need to have completed 2 full years of service since the age of
18. Further information is available in the document Redundancy
entitlement - statutory rights (PL808).
The business that
I work for has been taken over by a new company. Am I entitled
to redundancy?
This
may be a transfer of an undertaking and it is possible that you
may not be entitled to a redundancy payment. As it varies with
each case, you will need to contact our helpline on 0845 145
0004 and provide them with the details. Information can
also be obtained from the document Employment
rights on the transfer of an undertaking (PL699) and from
Acas (Advisory, Conciliation and Arbitration Service).
What about my company
car and mobile phone during my notice period?
Unfortunately,
we are unable to advise on this. You should contact Acas who may be able to assist. You can also obtain your
own legal advice.
How much time am
I allowed for job hunting?
There
is no set time. It is whatever is reasonable. More information
is available in the document Redundancy
entitlement - statutory rights (PL808).
If during my notice
period my employer reduces my hours, should I be paid my normal
weekly wage?
Yes,
you should be.
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