Redundancy

What is redundancy?
Where you lose your job because your employer is closing the business or reducing the number of staff, this is known as redundancy.

Being selected for redundancy
Your employer should use a fair and objective way of selecting people to make redundant.

Alternatives to redundancy
Before your employer makes you redundant, they might offer you another job in the business. This is known as ‘alternative work’.

Redundancy notice periods
If you are being made redundant, your job won’t end straight away. By law, you are entitled to a minimum paid notice period.

Do I have a right to redundancy pay?
If you lose your job you may be eligible for redundancy pay. This page summarises the rules on qualifying for a redundancy payment.

How much redundancy pay will I get?
Find out about redundancy pay and how your statutory redundancy is calculated.

Problems getting my redundancy pay
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.

Lay-off, short-time working and redundancy
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.

Taxation of lump sum payments
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