Redundancy
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Where you lose your job because your employer is closing the business or reducing the number of staff, this is known as redundancy. -
Your employer should use a fair and objective way of selecting people to make redundant. -
Before your employer makes you redundant, they might offer you another job in the business. This is known as ‘alternative work’. -
If you are being made redundant, your job won’t end straight away. By law, you are entitled to a minimum paid notice period. -
If you lose your job you may be eligible for redundancy pay. This page summarises the rules on qualifying for a redundancy payment. -
Find out about redundancy pay and how your statutory redundancy is calculated. -
Your employer should pay the redundancy lump sum to you when your employment ends. Get advice if you are having problems getting your redundancy pay. -
If your employer has no work available for you, or less work available than usual, you may be put on a lay off or short time working arrangement. -
Your redundancy lump sum is calculated according a certain formula based on your years of service in an employment. This worksheet is to help you work it out for yourself. -
Lump sum payments in compensation for loss of employment are subject to tax. How is tax calculated and what are your entitlements?This document is in: Income tax in retirement