What is notice pay in a redundancy process?

An employment contract will generally state the notice period an employer must provide if a member of staff is made redundant. If you’re facing this situation you should be paid for this statutory notice period, or alternatively, receive pay ‘in lieu of notice.’

Statutory notice periods in a redundancy process depend on the length of time you’ve worked for your employer:

• Between one month and two years: at least one week’s notice
• 2-12 years: one week’s notice for each year worked
• 12 years or more: 12 weeks’ notice

You may also be eligible to contractual notice, which could be the same length of time as statutory notice. It can also be longer, but not shorter in duration.

How much notice pay will you receive if you’re made redundant?

Statutory notice pay

You should receive your normal full pay for the entire statutory notice period if you work your usual hours. This also applies if you’re on holiday, sick leave, maternity, paternity, adoption, or parental leave.

Contractual notice pay

You’ll receive your full pay if you’re at work. If not, and you’re on holiday or on sick leave, for example, your usual rate of holiday or sickness pay will apply.

What is pay ‘in lieu of notice?’

In a redundancy process it’s common for employers to pay staff ‘in lieu of notice.’ This means you won’t work a notice period and your employment ends straight away, but you should still receive the full amount of notice pay as described above.

For more information on notice pay in redundancy, and how much you may be entitled to, contact our expert team at Redundancy Claims UK. We’ll assess your situation and ensure you understand your rights in the process. RCUK are Authorised and Regulated by the Financial Conduct Authority. Authorisation No 830522. You can check our registration here.