Question 1

How much statutory redundancy pay am I entitled to in the UK?

Accepted Answer

UK statutory redundancy pay depends on your age, length of service (up to 20 years), and weekly pay (capped at £700 from April 2025). You get 0.5 week's pay per year of service under age 22, 1 week's pay per year aged 22-40, and 1.5 weeks' pay per year aged 41 and over. You need at least 2 years' continuous service to qualify.

Question 2

Can I negotiate a better redundancy package?

Accepted Answer

Yes. Most employers will negotiate above the statutory minimum, especially if there are process failures in how the redundancy was handled. Common negotiation points include enhanced redundancy pay, extended notice periods, payment for untaken holiday, bonus entitlements, and outplacement support.

Question 3

What is a settlement agreement?

Accepted Answer

A settlement agreement (formerly compromise agreement) is a legally binding contract where you agree to waive your rights to bring employment tribunal claims in exchange for a financial package. Your employer must pay for you to receive independent legal advice before you sign. The first £30,000 of a settlement payment is normally tax-free.