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Who is Entitled to Statutory Redundancy Pay?

By: Paul Geraghty - Updated: 3 Mar 2023 | comments*Discuss
Redundancy Statutory Redundancy Pay

Redundancy payments are the silver lining in the cloud. Statutory redundancy payments tend not to be very generous, but they’re certainly better than nothing. But who exactly is entitled to one?

Entitlement to Statutory Redundancy Pay

The basic rule about Statutory Redundancy Pay (SRP) is that you are entitled to it if you have worked for your employer continuously for more than two years before being made redundant. You need to have a contract of employment, but this does not have to be in written form. Virtually everyone who does work for anyone else establishes a de facto contract of employment by doing so.

If you have less than two years’ continuous service, unfortunately you will not be entitled to any Statutory Redundancy Pay at all, although your contract of employment may give you rights to non-Statutory Redundancy Pay.

Part-time workers are entitled to SRP just as full-time workers are. Short-term casual workers, however, are not. If you work for a company through an agency, for example, legally your employer is the agency, so you will not be entitled to anything if the company itself announces some redundancies.

Self-employed people and freelance workers are generally not entitled to Statutory Redundancy Pay. Similarly, directors of companies usually have no entitlement.

Workers on fixed-term contracts are entitled to SRP if the duration of the contract is two years or more and it is not renewed by reason of redundancy.

If you have been put on short-time working by your employer for four weeks in a row, or six weeks within a 13 week period, you are also entitled to redundancy pay.

When You Are Not Entitled to Statutory Redundancy Pay

If you are dismissed from your job, rather than made redundant from it, you are not entitled to statutory redundancy pay. If you resign from your job, whether in a normal way or because you feel that you have been constructively dismissed, you are not entitled to SRP either.Certain categories of worker are always excluded from the statutory entitlement to redundancy pay. Among others, this include apprentices and those who serve in the military.

If you leave the job from which you are being made redundant and start a new one during your notice period, you may lose your entitlement to SRP.

If your employer offers you a new job as an alternative to making you redundant, and you reject it without good reason, you may lose your entitlement to SRP. Your employer is entitled to refuse to pay your SRP if the new job is substantially equivalent to the old one. You may feel that, in some important respect, it was not equivalent. When there is a dispute about this, it would have to be aired at an Employment Tribunal. If you win there, your employer would be forced to pay you SRP.

When the Company You Work For Has Been Taken Over

In general, the Transfer of Undertakings Protection of Employment regulations (TUPE) ensures that when the company you work for is taken over by another, your contract of employment is automatically continued by the new proprietor. This means that if you worked a company for one year before it was taken over, and then worked for the new company for another year after that, you would be entitled to statutory redundancy pay because, from a legal perspective, you have completed two years of continuous work for the same employer.

If the company you worked for was taken over, and the new proprietor agreed to continue your employment as before, but, for some reason, you decided not to accept this, you would not be entitled to redundancy pay. Your decision would be considered a form of voluntary resignation.

Entitlement to Statutory Redundancy Pay – Conclusion

In this age of changing work patterns, it is not always clear at first glance who is entitled to Statutory Redundancy Pay. But in recent years the government has been hardening regulations somewhat to bring some formerly excluded categories of worker into the fold.

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[Add a Comment]
I think your guidance states, self employed people are "generally" not entitled to redundancy payment. Do you have examples of exceptions when Statutoryentitlement could arise or non statutory redundancy could be argued should be paid? I have in mind a person who has worked for 15 years for the same employerbut for tax purposes if self employed.
Leicester - 3-Mar-23 @ 6:30 PM
I have work for the same company, under one roof for 32 years, self employed, I clock in and out get paid by the hour and holiday entitlement. The business is closing due to the owner retiring, am I entitled to redundancy?
Charlie - 23-Feb-23 @ 7:28 PM
I worked for the same employer for 23 years but changed company name five times am I entitled for redundancy for the full 23 years?
Angelino - 31-Jan-23 @ 12:54 PM
Hi I started with a company working through a agency I was with them for over 5 years on different sites some 2 years others jobs 1 the company had me on a agency for over 5 years working but Xmas last year they let me go saying the is no more work after 5 years service I was wondering was I lied too about that I couldn’t receive any redundancy I feel like they treated me very unfairly at the end
Buck - 2-Oct-22 @ 6:24 PM
I quite my job a month ago due to health issues. I had been working with my employer for 19 years as a dental nurse . I am 36 years old and did work full-time then dropped down to part time due to having kids. I was with my employer for 19 years would I be eligible for statutory redundancy pay !
Bernadette - 12-Sep-21 @ 10:40 PM
I have worked for the same company for 12 years. They have recentlygone into liquidation. I am Nominally self employed, but I have no other job, and they were my only source of income. Can I claim redundancy
WIZARD - 17-Jun-21 @ 9:59 AM
My wife started work with a small bakery/ cafe business 17 years ago. The business was sold and her employment transferred over to the new owners. The business was again sold and she transferred once again over to the new employer/ owner. That owner is now closing or selling the business and my wife has been told that she is being made redundant. As she has only been under the employment of the current owner for 2 years and 3 months she is only being offered 3 weeks redundancy.. is this correct? Were the transfers under TUPE and if so is she entitled to more redundancy?
Wayne - 24-Jan-21 @ 10:45 PM
Expert avatar Ben Jones, UK Lawyer 18,704 Satisfied customers Virtual Assistant avatar Pearl Wilson, Employment Lawyer's Assistant Welcome! How can I help with your employment law question? You My wife started work with a small bakery/ cafe business 17 years ago. The business was sold and her employment transferred over to the new owners. The business was again sold and she transferred once again over to the new employer/ owner. That owner is now closing or selling the business and my wife has been told that she is being made redundant. As she has only been under the employment of the current owner for 2 years and 3 months she is only being offered 3 weeks redundancy.. is this correct? Were the transfers under TUPE and if so is she entitled to more redundancy?
Wayne - 24-Jan-21 @ 10:33 PM
Been working for 9 years my job tittle changed 2 years ago would i still be entitled to redundancy and would this be for the 9 years or for the 2 years.
Bri - 9-Oct-20 @ 4:34 PM
I've worked in cafe for ten years my boss is selling her business and has a buyer I've been on furlough since early march and she said it could take till October before it opens so 2 question can I work while on furlough and am I intitled to redundancy many thanks
Shelly - 13-Aug-20 @ 12:51 PM
Company taken over in march, our store saved from closure. Been on furlough since april. Last week we were informed we were closing from mon 27/7/20 and no redundancies paid, what do I do now? Been employed 16 hrs a week for 21 years
Hilbo - 30-Jul-20 @ 2:33 PM
I’ve worked in the same building for 19yrs, under different security companies, am I entitled to redundancy on the closure of the building if I don’t want to move to a new site, I’m 54yrs old?
Colin Thompson - 16-Jul-20 @ 4:34 AM
I have worked for my firm for over twenty years but now been told we are having to go over to a contact cleaning firm which means we wil be TUPE Are we entitled to any employee rights having worked for the company for so long
Limbo - 6-Jul-20 @ 11:59 AM
Hi My company was taken over in February, I have been given a choice of take a job at another location 25 miles away for alot less money.Or basically I am out of a job. Can my employer force me into taking it and am I entitled to redundancy pay if I say no to the job due to money situation. Kind regards
Damo - 17-Jun-20 @ 2:57 AM
Yes hi my daughter as just been made redundant because of coronavirus. She as worked for her employer for less than a year. She started working their last July. Can her employer keep her on furlough until she finds another job or is she entitled to redundancy money. Thankyou
Tamms - 30-May-20 @ 8:08 PM
Hi, is it possible to get some help from someone regarding working for an agency please. I have been with an agency for just over 5 years and was working at the same company for that whole time too, the company I worked for decided to make some people redundant but obviously as I work for an agency I just lose my job!! That was 5 weeks ago and I thought my agency was supposed to help me get another job but they haven't. As I have been with them for so long, am I entitled to redundancy pay? Thank you for any advice you can give me!
Jacqui - 31-Mar-20 @ 12:02 PM
I am working for almost 9years as a nanny and they reduce my hours from 25 to 15 hours and i didn’t accept it , i am entitled for redundant pay ! Please advice thank you
Erlie - 26-Mar-20 @ 4:44 PM
Have worked for the same employer for over 20 years and for the last 10 months as self employed. With the virus situation our very own small business was forced to close. What chance redundancy
Nobby - 20-Mar-20 @ 3:47 PM
I have been with my employer on a self employed basis for 15 years .. am I entitled to any redundancy ?
None - 13-Mar-20 @ 10:05 AM
This article states 'Self-employed people and freelance workers are generally not entitled to Statutory Redundancy Pay.' Can anyone point to any examples or cases on this point?
Ian the Lawyer - 14-Feb-20 @ 12:29 PM
I am self employed and have worked for one if my clients for over 16 years. He is now closing the business ans selling the buildingi am still doing some book keeping for him until it is sold. He tellsme what days to work and what times to go in to the office. Am i entitled toany paymenton termination.
Hill - 21-Jan-20 @ 2:10 PM
My employer was dying of cancer so obviously had to close business so been finished since 9th April and he passed away beginning of August I was always told they had no money to pay redundancies until money came in off jobs we had done as I’m a builder but nothing has come in as yet and I know I only have 6 months to claim otherwise I would lose out but can you please help what I can do. Thank you Darren
Daz - 28-Aug-19 @ 7:21 PM
I have worked as an African drum teacher for A school in Wandsworth borough for 30 years 1 day per week during term time , with no breaks. wandsworth pays me as a "casual worker" by me signing off on the hours every month.This has only come into play in the last year. Before that I just received a cheque from wandsworth and the bursar claimed hours for me from Wandsworth.I see myself as an employee as I helpedwith the cultural development of the school, taking kids to other schools , doing concerts, and driving their minibus.They would like to term me as a casual worker with no rights so not to pay....what are my options
Bongo - 14-Jul-19 @ 8:50 AM
I was made redundant at jaguar Land Rover and found a new job (2 weeks) before my end date. I worked there for 2 years and 11 months. Can I claim redundancy as I only resigned to start a new job because I knew I was being made redundant?
Luke - 21-Feb-19 @ 12:26 PM
Can you please answer a question for me, If I move to part time work from full time work, will I be entitled to any redundancy pay? Thank You
Jock Mcnab - 30-Jan-19 @ 2:12 PM
Hi if you work for a small company for last 7yr but then it was sold on 4mth ago with all staf stil doing the same jobs and so on But then friday get a letter frpm new boss saying im being dismissd as there isnt much work and he wil pay me 1 weeks pay but its up to me if i goin to work it starting that same day can he do this Grateful for advice thanks
None - 19-Jan-19 @ 3:16 PM
I've been employed over 20years. My boss has told me he is retiring in next year and if no one wants to take over business he will wind it up. Does he need to pay out redundancy if business is wound up?
DonJock - 4-Dec-18 @ 11:57 PM
Hi, I have been working for the same company for 13 years and last month he said he has no work for me, he will let me know if anything comes up. I have now found out the company is closing in December I am self-employed and paid throu a third party ..but I do not supply tools vans boots anything ..I have only worked for this one company in the 13 years ..am I entitled to any redundancy ? ...he pays my tax to the 3rd party . Many thanks.
Kevin Harkins - 26-Nov-18 @ 12:47 PM
Hi Iv been made redundant And my boss has now put the business up for sale 6 weeks till we close down Iv decided to set up my own buinesss with my redundancy pay so have set the ball in motion for that But if he did sell in 6 weeks would I loose my redundancy pay? As it feels unfair that once you been told your been made redundant you then look at what to do next And 6 weeks is only a short time to sell a business
Bingo - 13-Aug-18 @ 8:05 PM
lost sheep - Your Question:
Hi, I've been working for my company (which is a partnership) for the last 25 years. The boss has told us he has looked into things and he doesnt have to pay redundancy (he says he is insolvent) we requested a reference number to claim of the government but he said he doesnt have one as its "not that type of insolvency"? He is closing the business as there is not enough coming in to keep it running, and he will not be moving premises elsewhere or trading under different name. I am really unsure on my rights here and im worried im going to lose my house if I cant keep the payments (which I was hoping to pay with my redundancy) Any help would be appreciated. Thankyou

Our Response:
The link here, will help you answer your question.
RedundancyExpert - 27-Jul-18 @ 12:33 PM
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