Redundancy can be a difficult experience for employees, but UK redundancy pay laws provide financial support to those affected. If you are made redundant, you may be entitled to a statutory redundancy payment (SRP) or an enhanced redundancy package from your employer.



In this article, we’ll cover who is eligible for redundancy pay in the UK, how it is calculated, notice periods, and employee rights.



What is Redundancy Pay?

Redundancy pay is a financial compensation given to employees who lose their jobs due to downsizing, company closure, or restructuring. In the UK, redundancy pay is divided into:



1️⃣ Statutory Redundancy Pay (SRP) – The legal minimum amount employers must pay.

2️⃣ Contractual (Enhanced) Redundancy Pay – Additional pay offered by employers as part of company policy or individual contracts.



Who is Eligible for UK Redundancy Pay?

To qualify for statutory redundancy pay, you must:



✔️ Have worked for your employer for at least two years continuously.

✔️ Be an employee (not a freelancer or contractor).

✔️ Be made redundant due to genuine business reasons (not dismissed for misconduct or performance issues).



You will not qualify for redundancy pay if:



❌ You have worked for less than two years.

❌ You were dismissed for misconduct.

❌ You were offered a suitable alternative job by the same employer and refused without a valid reason.



How is Redundancy Pay Calculated?

Statutory redundancy pay in the UK is calculated based on: