When being made redundant What are you entitled to?
If you’re being made redundant, you might be entitled to redundancy pay. You’ll only get redundancy pay if it is a genuine redundancy – check if your redundancy is fair. There are 2 types of redundancy pay you could get: ‘statutory’ redundancy pay – what the law says you’re entitled to.
When your made redundant do you leave straight away?
If you’re made redundant, your job won’t end straight away – you’ll get a paid notice period. You might get notice pay instead of your notice period – this is called ‘pay in lieu of notice’. Your employer will tell you if they’ll give you pay in lieu of notice.
Do you get a payout if made redundant?
Your employer can’t pay you less than this. But they might have to pay you more if your employment contract says so. This is called ‘contractual redundancy pay’. This could mean a bigger lump sum or getting a payout, even if you’ve worked there for less than two years.
Can you negotiate redundancy pay?
The payment is based on age, gross weekly salary and length of service. If so, the higher redundancy payment should be made, rather than the statutory amount. Often it is possible to negotiate a severance payment with your employer, especially where there are question marks over the validity of the redundancy.
What happens to your workplace pension if you are made redundant?
If you’re made redundant, you’ll have to stop paying into it and do one of the following: Leave your pension in the scheme and when you retire you’ll get an income from that. Transfer your pension into a new employer’s scheme (if they allow you to). If you’re old enough, you might be able to take early retirement.
What should I do with my redundancy money?
Making the most of your redundancy pay
- First, check all the money’s yours.
- Use your lump sum as regular income.
- Keep up payments on essential extras.
- Clear your debts.
- Paying into your pension.
- Invest in other ways.
- Start your own business.
- Get some training.
