Labour Research (November 2019)

Law Queries

Redundancy pay


Q. After 12 years’ service, I’ve been told that my job is to be made redundant at the end of next month. If I get another job before then, will I still get my redundancy pay?

A. This depends on whether you have been given notice of redundancy. This is because the statutory right to redundancy pay only arises if you have been “dismissed” by reason of redundancy. If there is no dismissal, there is no redundancy pay.

If you have been given notice of dismissal (told that your employment will end on a specific date), it is possible to bring forward your notice if you give your employer a written counter-notice to end your employment on an earlier date. 


Your employer can challenge this by giving a further written notice insisting on the original end date — as long as they do this before the counter-notice has expired — so this is not an absolute right.


If you have a contractual redundancy pay policy and procedure that is better than the statutory terms, this may have its own rules about notice. But often these enhanced redundancy or voluntary severance packages stipulate that you will not receive the payment if you have already secured other employment. So you should check the terms carefully.


It may also be possible to agree with your employer in advance that you will be entitled to receive redundancy pay in these circumstances. 



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