Know If You Are Eligible for Redundancy Pay
If you face redundancy, you may wonder if you are eligible for redundancy pay. The answer to this question depends on a number of factors, including your employment contract, your length of service, and your age.
In general, redundancy pay is calculated based on your weekly wage and your length of service. The minimum amount you can receive is set by law, but your employer may pay more than this if they choose to and know if you are eligible for redundancy pay.
Your employment contract should state whether you are entitled to redundancy pay and, if so, how it is calculated. If you are unsure about your contract, you can ask your employer or seek advice from a Citizens Advice Bureau.
How to become eligible for Redundancy Pay
Employees can do a few things to become eligible for redundancy pay.
-The first is to ensure they have worked for their company for at least two years.
-The second is to check their contract to see if their employer is obliged to give them any redundancy pay.
The third is to speak to their employer about their entitlement to redundancy pay. You must also be at least 18 years of age and not in receipt of a pension from your employer.
You may be entitled to a statutory redundancy payment if you meet these criteria.
2 Types of Redundancy Pay
Statutory Redundancy Pay
When an employee is made redundant, they are entitled to receive statutory redundancy pay. This is a sum of money paid to the employee to help them cover the costs of losing their job. The amount paid is based on the employee’s length of service, age, and weekly pay.
Contractual Redundancy Pay
A contractual redundancy payment is a payment that an employer is contractually obliged to pay to an employee who is made redundant. The payment amount is usually based on the employee’s length of service and salary.