Who qualifies for redundancy pay?
Qualifying for redundancy pay
To qualify for statutory redundancy pay an employee must have been employed for two years by the date of dismissal, irrespective of their hours of work.
Unfair dismissal claims can be pursued only after one year of qualifying service but this is not sufficient for redundancy claims.
Criteria for non-qualification
Employees are not entitled to statutory redundancy pay if:
- offered suitable alternative work
- guilty of misconduct
- industrial action is occurring and redundancy notice is served
The time limit for submitting an unfair selection for redundancy claim is three months from the date of contract termination but six months if the claim is just related to a failure to make a redundancy payment. Employees will also forfeit the right to claim statutory redundancy pay if they leave work prior to the actual issue of the redundancy notice. But employees under notice can mutually agree with their employers to extend the notice, for example, in the expectation that the company’s trading position will improve, without compromising their redundancy entitlement.
Specific types of workers are excluded from the statutory scheme but have alternative arrangements - crown employees, NHS workers and most merchant seafarers. Other excluded categories are sharefisherman, domestic servants, those employed by close relatives, foreign government employees and employees married to their employer.
The information in this section provides guidance and some basic details of employment rights. They do not attempt to be comprehensive, and should not be taken as an authoritative statement of the law. For latest advice and guidance, please contact our Helpdesk.
Member advice from our Helpdesk
If you are a TSSA member and are looking for advice or assistance in connection with your employment or membership, you can contact our Members’ Helpdesk.
We can advise on a range of workplace issues including; discipline and grievance hearing, maternity rights and redundancy.
Helpdesk opening hours: 09:00 - 17:00 Monday - Thursday | 09:00 - 16:00 Friday
Please note: we cannot undertake to provide advice to non-members, to members of other unions, or to members on behalf of their partners/friends. If you are not yet a member, please join TSSA online.