What are Redundancy Payments?

If you are made redundant, you may be entitled to Redundancy Pay.

You are usually eligible for redundancy pay if you have worked for the same employer for at least two years. The amount of money you receive depends on your pay, your age, and how long you have worked for the employer.

You may also be able to claim redundancy pay if you are temporarily laid off for more than four consecutive weeks, or for six non-consecutive weeks in any 13-week period.

You cannot claim Redundancy Pay if you are dismissed for misconduct or poor performance. All employees in certain professions are exempt from Redundancy Pay, including members of the armed forces and many government employees.

Redundancy payments over a certain amount count as taxable income. In 2011/12 this amount was £30,000.