How to Calculate Voluntary Redundancy

If your employer needs to reduce the size of the workforce at the company, the result may be your redundancy. This may happen for a number of reasons, including elimination of your job, a need to cut costs or if the business is closing.


Dismissal must be the reason for you leaving your job to receive redundancy pay. Someone who resigns does not necessarily qualify for redundancy pay. But in a situation where you are asked to take voluntary redundancy, this should qualify as a dismissal, the reason being redundancy.

Factors for Payment

The calculation for statutory redundancy pay takes into account three factors. The first is how long you have been continuously employed. The second is your age. The third is the amount of your weekly pay, but there is a maximum limit for this pay. Some employers do offer more generous packages above and beyond the required statutory redundancy pay. Check your contract for this information.


For the years that you worked under the age of 22, you will receive 0.5 week's pay for each full year of service. For the years you worked between the ages of 22 and under 41, you will receive 1 week's pay for each full year of service. And for the years you worked at the age of 41 or above, you will receive 1.5 week's pay for each full year of service.

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About the Author

Sherri McKelvey started her professional writing career in 2010. She writes for various websites with expertise in the areas of training, management, human resources and recruitment. McKelvey graduated magna cum laude with a Bachelor of Arts in psychology and professional writing from the College of New Jersey.

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