UK Redundancy Pay: Questions Answered

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Everything people ask about UK statutory redundancy pay in 2026 — beyond the basic calculation. Use the calculator for your figure, then read on for the rules around it.

Frequently asked questions

Who is eligible for statutory redundancy pay?

Employees with at least 2 years' continuous service who are dismissed because of genuine redundancy. Agency workers, the genuinely self-employed and those who unreasonably refuse suitable alternative work generally don't qualify.

Is statutory redundancy pay taxed?

Statutory redundancy pay is tax-free, and the first £30,000 of any wider redundancy package is also free of tax and National Insurance.

What if my employer is insolvent?

You can claim statutory redundancy pay (and other owed amounts, within limits) from the government's Redundancy Payments Service if your employer can't pay.

Does redundancy pay include my notice?

No. Redundancy pay is separate from notice pay. You're entitled to both — statutory notice is 1 week per year up to 12 weeks, paid at full pay.

Can I get more than statutory?

Yes, if your contract offers enhanced redundancy. Statutory is only the legal minimum this calculator shows.

What counts as continuous service?

Generally unbroken employment with the same employer (or an associated one). Certain gaps and transfers can preserve continuity — check the specifics if you've had breaks.