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What are redundancy payments

what are redundancy payments

Non payment of Redundancy Pay

How do I get my redundancy Pay?

Redundancy payments are made automatically, there is no need to make a claim unless the employer fails to pay or disputes the entitlement.

The employee should then firstly put in a written claim to the employer and if that fails ask an employment tribunal to consider the matter. This must be done within six months of the job ending. An ACAS Conciliator may be able to assist here.

What do I do if my employer won’t give me my redundancy payment?

If your employer can’t or won’t make a redundancy payment you can make a claim for payment from the Redundancy Payments Office (RPO). The legal obligation for redundancy payments lies with the employer. If an employer genuinely can not afford these settlements, the RPO may be able to make the payments directly to the employees.

If your employer has been declared legally insolvent, the insolvency service who is dealing with your employers circumstances will give you an applications form RP1 which will enable you to make a claim.

If your employer has been declared legally insolvent this means the company has gone into:

  • Liquidation with a court winding up order
  • Administration
  • Receivership
  • Bankruptcy
  • Voluntary arrangement with creditors
  • The employer has died

If however your employer is not legally insolvent and you have been given an employment tribunal award, which the employer has not paid, you can apply to the Redundancy Payments Office (RPO) for payment.

As from April 2006 employees who continue to work for an insolvent employer while the business is being transferred to a new owner may be assisted financially by the National Insurance Fund.

This document can be downloaded from:

Click here for further details on specific Redundancy Payment Offices

If you need any more information about filling in the RP1 form or general advice on redundancy, phone the helpline on 0845 145 0004.

Contact details:

Redundancy Payments Office

7th Floor, Hagley House

83-85 Hagley Road

Birmingham B16 8QG

Telephone 0121 456 4411

Claiming redundancy or insolvency payments

The Insolvency Service provides help to former employees of insolvent companies

who are owed wages and other money. They also assist employees who may be making a redundancy claim if the employer is solvent but can’t or won’t pay.

There are notes attached to the document which you can download or collect from your jobcentre which will assist you in completing the form.

You can claim for the following :-

  • A Redundancy payment .
  • A Compensation payment if your employer has not given you “notice pay” this is the correct notice of dismissal.
  • For Unpaid wages and or Holiday pay .

To ensure that there are no delays with your payment it is advised that the form should be filled in clearly in black ink, that you make sure you have completed all the relevant sections and given as much information as you are able.

How Calculations are made

Your payment may be affected by legal set limits that vary with the type of payment, for instance:

  • Redundancy pay - this is based on age, number of complete years of service and weekly pay. There is a limit of 20 years’ service and 30 weeks’ payment. Please click here for our *redy reconkner* so you may calculate your payment.
  • Notice pay - this is based on length of service and rate of pay.
This is limited to up to a 12 weeks’ payment.
  • Wages owed - this is based on amounts owed for each week. There is a limit of 8 weeks’ payment.
  • Holiday pay - this is based on holiday pay owed for the 12 months prior to the company becoming insolvent. This is limited to a payment of 6 weeks’.
  • National Minimum Wage Regulations 1998, Working Time Regulations 1998.
  • The receiver or liquidator gives will inform the insolvency service of your employer’s wage records, and if it is found that you have been paid below the legal limit by your former employer, the receiver or liquidator will increase your wage and holiday payment to the amounts required by these regulations.

    All payments have a legal limit on a week’s pay; from 1st February 2013 to it is £450.00. This limit is reviewed every year.

    Category: Bank

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