United Kingdom Labour Law

UK statutory
Redundancy Rules 2026

Everything you need to know about redundancy rights, the £643 weekly cap (as of 2024/25), and age multipliers in Great Britain.

Statutory Redundancy Pay (SRP)

In the UK, if you have been an employee for at least 2 years, you are legally entitled to Statutory Redundancy Pay. The amount depends on your age and length of service.

The UK Age-Based Multiplier

Under 22: 0.5 week's pay per year
22 to 40: 1 week's pay per year
41 and Over: 1.5 weeks' pay per year

Consultation & Notice Rights

Employers must follow a fair redundancy process, which includes a consultation period. If they are making 20+ people redundant, there are strict collective consultation timelines (30 to 45 days).

Tax-Free Thresholds

A major benefit in the UK is that the first £30,000 of redundancy pay is usually tax-free. Any amount above this threshold is subject to standard Income Tax and National Insurance contributions.

Pay in Lieu of Notice (PILON)

If your employer wants you to leave immediately, they may pay you "in lieu of notice." This is separate from your redundancy pay and is fully taxable as regular earnings.

Authentic FAQ

What is the maximum weekly pay cap?
The government sets a limit on the amount of 'weekly pay' used for the calculation (currently £700 per week for 2024/25).
Can I lose my redundancy pay?
Yes, if your employer offers you "suitable alternative work" and you refuse it without a good reason, you may lose your entitlement.

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