Redundancy pay

[Tock389]

There is talk of redundancies where I work. Basically it is an office, where I have been a permanent, full time administrator since June 2004. Am I entitled to any sort of redundancy payout? My friend says it is two years' minimum before you get any sort of payout?

What is the law about this?

[acw]

Unfortunately your friend is correct. 

http://www.dti.gov.uk/er/redundancy/ready.htm

Sorry to be the bearer of bad news.  Good luck and I hope you don't get made redundant, or that if the worst happens, you find a new job easily and quickly! :-)

[Sammy Snake]

Someone at our Company was made redunant after 12 months in her role recently, and she got a payout.  Ok, so she may have only got a week or twos wages but it's better than nothing!

[acw]

A week or two is all a lot of people are entitled to!  Perhaps Sammy Snake's company were being generous and making a good will gesture.  Hopefully other companies would do the same.  :-)

[ursula62]

I believe that the government minimum  payout is a week's money for every year worked after the first two years, up to a maximum of eight weeks money.  So, if you have worked there for less than two years you get nothing. If you have worked more than 8 years you get 8 weeks money and no more.

Many firms pay a lot more than the statutory minimum. Also, many large companies also provide redundancy counselling and careers advice to help people made redundant. This is available to all staff who face this possibility, not just those who have worked more than 2 years. Sometimes they even pay grants to help you retrain. It depends on the reasons for the redundancies.

I would ask your HR department about the rumours you've heard. These days rumours of staff cuts are common and sometimes unfounded. Other times the redundancies come as a complete shock, viz the story in the papers recently about people being sacked by email or text message.

[OBonio]

By law, the company don't have to pay out. Some are generous though and will give you something.

[OBonio]

Let me rephrase. If you've been there less than 2 years, you aren't entitled to anything but some companies will payout anyway. Depends on their policy.

[acw]

I'm sorry - what did my first answer say!?!  What did the link to the dti say!?!  Was my post invisible!?!