How Much Am I Entitled To When I Am Made Redundant?
GMB negotiates enhanced redundancy pay schemes with employers
for our members. Check your contract of employment, or
contact your local GMB representative to see if there is an
enhanced redundancy pay scheme.
The amount of your statutory redundancy payment is based on the
length of your continuous employment, your age and your week’s
pay.
The maximum length of continuous employment that may be counted
is 20 years.
Your gross weekly pay (ie before tax) is limited to a maximum of
£400 (where the redundancy takes effect on or after 1 Feb
2011. Before that, the limit was £380.)
You are entitled to:
· One and a half weeks’ pay for each
year of employment you were aged 41 and over.
· One week’s pay for each year of
employment you were aged 22 to 40 inclusive.
· Half a week’s pay for each year of
employment you were aged up to 21 inclusive.
Therefore the formula used to calculate your payment is:
Years of employment x multiplier x weeks pay (up to £400
limit)
This table
will help you make your calculation. Just read along the
row and column that correspond to your age and number of complete
years of service. The table will then tell you how many weeks’ pay
you should get.
Example:
You are 50 years old and earn £400 per week gross and have been
working continuously with your employer for 10 years.
Calculation
50 years of age and 10 years of service. The table gives a
multiplier of 14½ .
Therefore multiply your week’s pay of £400 by 14½ = £5,800
The result is the same if your gross weekly wage is higher than
£400 per week because you are limited by the £400 maximum.
If your weekly wage is lower than £400 per week, say £190, then
you should use this figure. Therefore you would multiply £190
by 14½ = £2,755.