In any case where redundancy is threatened, specific advice and assistance is available and should be sought from your school/college rep or division/association/branch secretary.
If I am made redundant what payments may I be entitled to receive?
You may receive one or more of the following, depending on your statutory and contractual entitlements, and any agreements which the union may have negotiated locally. You may receive:
- statutory redundancy pay
- a discretionary enhanced redundancy payment
- compensation for early retirement on grounds of redundancy
- notice pay.
Am I entitled to statutory redundancy pay?
You will have an entitlement to statutory redundancy pay (which is the legal minimum entitlement) if:
- you are an employee (agency supply workers will not normally qualify for redundancy pay, but seek advice from the Adviceline in England or the Wales office), and
- you have two years’ continuous employment with your employer at the date of dismissal (successive employment with different local authorities may count as continuous employment)
- you have been dismissed by reason of redundancy.
How much statutory redundancy pay am I entitled to?
The amount of statutory redundancy pay you are entitled to will depend on the length of your continuous service, your age and how much you are paid. The minimum statutory entitlement is calculated as follows:
|For each year of service from age 41 or over||1.5 weeks’ pay|
|For each year of service from age 22 to 40||1 week’s pay|
|For each year of service below age 22||0.5 week’s pay|
The maximum number of years of employment that can count is 20 years.
From 6 April 2021 to 5 April 2022, a week’s pay will be limited to a maximum of £544 (gross). The maximum limit normally changes every April, so contact the NEU Adviceline if you are at all unsure about the limit applied in your case. Alternatively, use the Government’s statutory redundancy pay calculator.
The formula used to calculate payment is:
- years of employment x multiplier x weeks pay (up to statutory limit).
You are 60 years old and earn £650 per week gross. You have worked continuously with the same employer for 23 years.
Although you have 23 years of service, only 20 years of service will count in the calculation. Your gross weekly wage will also be limited to £544 per week.
60 years of age and 20 years of service equates to a multiplier of 29.5 weeks’ pay, ie 19 years @ 1.5 weeks’ pay and 1 year @ 1 week’s pay. Multiply £544 by 29.5 to give you £16,048.
What if I earn less than the statutory week’s pay?
Your actual weekly wage will be used to calculate your entitlement if you earn less than the statutory limit.