Managing Redundancies Part 6 of 7


Making people redundant is never easy, the current climate may leave you in a position where you need to take the decision to initiate redundancies in your workplace, in our series of 7 short videos we will explain how you should manage the process.

How much will you have to pay your Employees


 You must pay redundancy to Employees who have:

  • An employment contract
  • Worked for a 2 full years
  • During the coronavirus pandemic, Employees have the same redundancy rights, including redundancy pay.


You must pay at least the statutory amount to your Employees.


It is dependent on their age and how long they have worked for you and capped at 20 years working backwards from the date you made them redundant. You must pay:

  • 5 weeks pay for each year of work after their 41st birthday
  • 1 week pay for each year of work after their 22nd birthday
  • half a week for each year of work before their 22nd birthday


Weekly pay should also include:

  • Regular overtime if their contract says they must get paid for it
  • Any bonuses or commission


The limit for weekly pay is £538. The maximum total amount of statutory redundancy pay is £16,140

You should check your employment contracts as you might need to pay more than the statutory amount.


Next steps


In our final part 7 of this video series we will look at supporting your Employees and planning for the future, if you need support please do get in touch.

If you are planning any redundancies please do get in touch as the process can become complicated, our team of fully practicing trained and experienced Legal and HR Consultants can assist you and take the pressure.

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