Who Is Entitled to Statutory Redundancy Pay?

Originally written by Paul Geraghty, updated by the editorial team on 25th June 2026

Losing your job through redundancy is unsettling, but statutory redundancy pay can provide some financial cushion while you look for new work. The amounts are modest, but they are a legal entitlement for those who qualify. This article explains who can claim statutory redundancy pay and what the main requirements are.

The Two Year Rule

The basic qualifying requirement for statutory redundancy pay is straightforward: you must have worked for your employer continuously for at least two years before the date your employment ends. This is often called the two year service requirement.

If you have been employed for less than two years, you will not qualify for statutory redundancy pay under the standard rules. However, if your redundancy is connected to whistleblowing or discrimination, separate legal protections may apply that could affect your overall claim, even if they do not change the basic redundancy pay eligibility criteria.

Your contract of employment or your employer's redundancy policy may also offer enhanced redundancy terms that apply even with shorter service. These contractual payments are separate from the statutory minimum and depend entirely on what your employer has agreed to provide.

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Employment Status and Contracts

To qualify for statutory redundancy pay, you need to be classed as an employee. Although it may seem clear cut, the distinction between employee and non employee status is crucial for legal purposes because not everyone who works for an organisation is legally an employee.

Employees can have verbal or implied contracts, so a written contract is not necessary. In practice, if you turn up for work on a regular basis, receive a wage, and your employer controls how and when you do your job, you will usually be considered an employee for legal purposes.

Workers who are genuinely self employed do not qualify for statutory redundancy pay. The same applies to contractors who work through their own limited companies. These arrangements carry different legal rights and obligations.

Part time employees are entitled to statutory redundancy pay on the same basis as full time employees, with the amount calculated according to their working hours and pay.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Agency Workers and Casual Staff

Agency workers present a more complex situation. If you work at a company but are supplied by an employment agency, your legal employer is usually the agency rather than the company where you carry out your work. This means any redundancy claim would typically be against the agency, not the host business.

Whether agency workers build up continuous service depends on the specifics of their contract and employment relationship with the agency. Some agency arrangements may allow for continuity of service across different assignments, particularly where there is an ongoing employment relationship with the agency itself. However, many agency workers who move frequently between unconnected assignments may struggle to establish the required two years of continuous service with any single employer.

Casual workers on zero hours contracts may or may not qualify, depending on their working pattern. If you have worked regularly for the same employer for two years or more and meet the definition of an employee, you can qualify. Sporadic or genuinely casual arrangements with long gaps between work are less likely to count as continuous employment.

If you are unsure about your employment status, you can check the guidance on GOV.UK or contact Acas for advice. Getting this right matters because it affects not just redundancy pay but other employment rights too.

Calculating Your Entitlement

Once you know you qualify, the amount you receive depends on three factors: your age, your length of service, and your weekly pay. The calculation uses a formula that gives different weightings to years of service depending on how old you were during each year.

There is a cap on the weekly pay figure used in the calculation, and this cap is updated each year. The maximum number of years that count towards your payment is twenty. Current rates and thresholds are published on GOV.UK, and you can use the official redundancy pay calculator there to work out your likely entitlement.

Statutory redundancy pay is tax free up to a limit of thirty thousand pounds. Most statutory payments fall well below this threshold.

Your employer should include your redundancy payment with your final pay, along with any outstanding wages, holiday pay, and notice pay. If your employer refuses to pay or becomes insolvent, you may be able to claim through the Redundancy Payments Service. This government scheme covers statutory redundancy pay, unpaid wages, holiday pay and notice pay when employers cannot meet their obligations due to insolvency.

For detailed guidance on current figures and how to make a claim, visit GOV.UK or speak to Acas, who offer free and impartial advice on workplace matters.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Redundancy Pay Calculator lets you find out how much statutory redundancy pay you could be entitled to. Enter your details and get an estimate in less than a minute. Try it now →

65 questions

Ask Redundancy Expert a Question

Leicester 03/03/2023 at 6:30 pm

I think your guidance states, self employed people are "generally" not entitled to redundancy payment. Do you have examples of exceptions when Statutory entitlement 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 employer but for tax purposes if self employed.

Charlie 23/02/2023 at 7:28 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?

Angelino 31/01/2023 at 12:54 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?

Buck 02/10/2022 at 6:24 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

Bernadette 12/09/2021 at 10:40 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 !

WIZARD 17/06/2021 at 9:59 am

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

Wayne 24/01/2021 at 10:45 pm

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 24/01/2021 at 10:33 pm

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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?

Bri 09/10/2020 at 4:34 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.

Shelly 13/08/2020 at 12:51 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

Hilbo 30/07/2020 at 2:33 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

Colin Thompson 16/07/2020 at 4:34 am

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?

Limbo 06/07/2020 at 11:59 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

Damo 17/06/2020 at 2:57 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

Tamms 30/05/2020 at 8:08 pm

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

Jacqui 31/03/2020 at 12:02 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!

Erlie 26/03/2020 at 4:44 pm

I am working for almost 9 years 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

Nobby 20/03/2020 at 3:47 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

None 13/03/2020 at 10:05 am

I have been with my employer on a self employed basis for 15 years .. am I entitled to any redundancy ?

Ian the Lawyer 14/02/2020 at 12:29 pm

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?

Hill 21/01/2020 at 2:10 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 building i am still doing some book keeping for him until it is sold.
He tells me what days to work and what times to go in to the office.
Am i entitled to any payment on termination.

Daz 28/08/2019 at 7:21 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

Bongo 14/07/2019 at 8:50 am

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 helped with 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

Luke 21/02/2019 at 12:26 pm

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?

Jock Mcnab 30/01/2019 at 2:12 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

None 19/01/2019 at 3:16 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 go in to work it starting that same day can he do this
Grateful for advice thanks

DonJock 04/12/2018 at 11:57 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?

Kevin Harkins 26/11/2018 at 12:47 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.

Bingo 13/08/2018 at 8:05 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

RedundancyExpert Editor 27/07/2018 at 12:33 pm

whichwill help you answer your question.

lost sheep 26/07/2018 at 11:51 pm

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

P J 04/07/2018 at 6:13 pm

Hello my wife has 20 years service as a cleaner for a cinema that is closing down she does
Not work for the cinema but works for a cleaning company how does she stand about redundancy many thanks PJ

RedundancyExpert Editor 28/06/2018 at 2:53 pm

The link here may help you more.

Lis 27/06/2018 at 7:51 pm

Hi, i am treasurer for an unincorporated charity, the charity is closing and a long serving employee is entitled to redundancy which the charity will not be able to pay. Can they claim from the government?
Thanks

Megj 09/05/2018 at 2:26 pm

I have worked for the same company for 12 years in June .in September I had to move areas but continued to do my job ( as it was work from home anyway )yesterday my manager came to me and said they no longer need me and that they will give me 3 months then I am to be done with the company . This doesn't seem right . They won't say out loud i am sacked I suppose because I have done nothing to be sacked for . Nor have they offered me redundancy ... what do you think I am entitled to ? Thankyiu

D 24/04/2018 at 5:47 am

Hi I have be maded redundant. I have been with this company for 18 years and now this company is saying that they don’t pay out redundancy, they only pay out what the government says. Is this right.

Polly 06/03/2018 at 10:24 am

The company I currently work for are relocating and I have been offered employment by the company who are moving into the premises. Am I entitled to redundancy? I have been employed by the current company for nearly 12 years

RedundancyExpert Editor 13/02/2018 at 11:46 am

When a business changes owner, its employees may be protected under the Transfer of Undertakings (Protection of Employment) regulations (TUPE), , for more information on what this means.

DJC 12/02/2018 at 5:12 pm

Hi, if employer is in liquidation and employee is transitioned to a new employer would employee still be entitled to statutory redundancy pay?

Plinky 12/10/2017 at 10:51 pm

Company entered a CVA which failed a few months later
All staff and the director received statutory redundancy payments but were refused payments for holiday pay and outstanding wages due
Reason given was claims were deemed to be after the original date of the CVA

Sus 05/10/2017 at 4:05 pm

Old company went insolvent on Friday. New company started on the Monday. Employee been given job exactly the same in new company. Is he entitled to redundancy?

RedundancyExpert Editor 05/10/2017 at 9:40 am

Please see gov.uk link here for more information on your situation and what your rights are.

Templer 04/10/2017 at 1:10 am

Hi

I’ve work full time for the same company for 10 years. Then I reduced my hours to 20 for awhile but then I dropped down to 5 hours as I’m over 63 and wanted more time with family.

Now the company I worked for has gone into administration.

Am I entitled to redundancy?

Lee

MUSH 20/08/2017 at 9:56 pm

I have just been told that i need to find another job till christmas because there is no work , boss gave me two weeks to find something witch i have got new job now , and i was wondering am i entitled to any redundancy pay, been with them for three years and three months , and i have made my mind up not to go back , any help will be great ,

Jo Editor 22/08/2017 at 3:30 pm

@carol - yes, if your job is being made redundant.

Carol 15/08/2017 at 9:59 am

Do you get redundancy pay if you have been off work for 11 months sick?

Dan 14/08/2017 at 2:09 pm

I have just been made redundant last week, I have worked for the company since 2011 when I started my apprenticeship and only completed my apprenticeship in July of last year. Am I entitled to any redundancy or not?

Andy73 Editor 13/06/2017 at 9:57 am

@Ash - Not if you have been previously classed as self-employed and have only recently been employed by the new owners.

Dizzydiane 16/05/2017 at 4:04 pm

I am taking voluntary redundancy in august. I work 25 hrs as an administrative assistant in a school, I work 38 weeks a year and my salary is divided into 12 equal monthly amounts. I am classed as a term time worker. My redundancy package has been calculated as though I work 52 weeks so my pay works out as £213 pounds a week, I believe that my weekly pay should be around £253 pounds a week based on 44 weeks i.e. 38 weeks worked and 6 weeks holidays which I am expected to take in school holidays. My LEA disagrees who is correct?

Finance Officer 06/04/2017 at 1:42 pm

We're a very small charity and a colleague was made redundant a few months ago because we ran out of money for their project. We now want to re-employ them for a few months. Will they have to pay tax on their (small) redundancy payment?

Munna 11/03/2017 at 3:34 pm

I have been working in shell garage for about a year and it's been taken over by another retailer , my old employer offerd another job and later he changed his mind and wants me to go with new retailer , I don't wish to continue the job any more can I clime redundancy ?

Me 03/03/2017 at 3:37 pm

Being made redundant nxt wk and we have to apply for statutory redundancy online how long does this take to b paid into our bank. I used to get paid at end of month thank you

Alan 03/03/2017 at 2:19 pm

my employer sold his business a fortnight ago and we we're told are jobs are safe. the new owner has just sold up and we've been told now we have no jobs.what are my rights

Joy Editor 24/01/2017 at 2:51 pm

@Erstwhile Freelancer - no, it will start from the time you became an official employee (not a freelancer). JK

Erstwhile Freelancer 24/01/2017 at 10:52 am

I have worked in a college of higher education for 18 years - always in the same role. For the first 10 years I was a freelancer but the role eventually became employed. If I am made redundant now, will the early freelance years be included in any redundancy payment package?

Daz 23/02/2016 at 8:12 am

I am currently working for a company and the director has set another business up almost 3 years ago of which there are 4 directors. His 3 sons (who also work for there father) and 1 daughter. The company has been trading in similar work to our company. If he declares his company as insolvent am I entitled to redundancy, and if he offers us ALTERNATIVE employment with the new company are we obliged to take it. ?

SR2410 24/10/2015 at 11:10 am

The company I worked for and served as a director for went into liquidation in August 2015, The insolvency practitioner sold some of the business assets including the E-Commerce website and Customer list to a similar business 20 miles away. I together with the other director and 6 employees claimed redundancy and notice pay from the government scheme, but this has just been refused as they consider that the business has transferred under TUPE which it has not. The former MD has appealed to the Insolvency Service and the case was reviewed but the result was the same. Where do we go from here? Do we have a claim against the Insolvency Service or the business that bought the assets (who is adamant that it is nothing to do with them!). Any help appreciated.

RedundancyExpert Editor 05/08/2015 at 11:25 am

@pot - more information can be found via the gov.uk site; 'your rights if your employer is insolvent', whichI hope this helps.

pot 02/08/2015 at 3:32 pm

Im an employee and a director of a company that has gone into voluntary liquidation i have worked there for 26 years can i claim redundancy pay from the government any help would be very much appriciated. Thanks

Gloria 23/04/2015 at 3:49 pm

When I was made redundant a month ago, my employers told me the business was insolvent and I could claim redundancy pay from the government. I put in a claim but it was rejected because the company was shown as still active. Now my former employers have sold the business to someone else. Can I still claim RP from my old employer, or should I apply to the new one? Is it legal for them to sell the business when they told their employees they were dissolving the company? Any advice appreciated.

Unni 12/02/2014 at 12:40 pm

I know 4 nurses working in a NursingHome as Bank Nurses. They have been in that position for the last 4-5 years. Following a decision by the Nursing Home to convert it into a Care Home all the Nurses including the Bank Nurses have been made redundant. Regular Nurses are getting Redundancy pay.

My question is are the Bank Nurses eligible for any Redundancy pay?

shark 23/08/2013 at 12:43 pm

Non paid director of company for 7years but was paying of loan

Tim Brittain 26/04/2013 at 6:09 pm

I have been made redundunt.the firm I worked for took voluntary insolvancy. I have filled in the form and have been waiting 5weeks I had a letter of insolvency service redunduncy payments saying dont do anything we be intouch with you .I no the firm has no monney will Iget my redunduncy money

Tommy 19/10/2012 at 9:25 am

I have been a director of a company for twenty nine years after that was bought out and continued working as employee for the new company for four years and now company is closing what redundancy am I entitled to

katiee 20/08/2012 at 12:55 pm

Ive been with employer 1year and 7months am I entitled to any redundancy money?

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