Aside from a fair consultation and the ability to appeal the decision which should form part of a redundancy process as outlined above, employees have a number of financial entitlements.
If they have been employed by the business for at least two years, they are entitled to receive a statutory redundancy payment which is calculated based on their age and length of service as follows:
Half a week’s pay for each full year they were under 22
One week’s pay for each full year they were 22 or older, but under 41
One and half week’s pay for each full year they were 41 or older
Length of service is capped at 20 years for redundancy purposes and there is also a statutory cap on weekly pay which is reviewed each year and is currently £525 (as at April 2019).
In addition, employees also entitled to a period of statutory or contractual notice, or payment in lieu of notice, as well as accrued untaken holiday entitlement.