Redundancy
Your employee will be entitled to redundancy pay if at the point of being made redundant they have been employed by you for a minimum of 2 years.
The minimum amount of redundancy pay due to them depends on their age and gross weekly pay amount.
Employee Age | Redundancy Pay due per full year of employment (England, Scotland, Wales) | Redundancy Pay due per full year of employment (Northern Ireland) |
Under 22 | Half a week’s pay or £321.50, whichever is lower | Half a week’s pay or £334.50, whichever is lower |
Between 22 and 40 | One week’s pay or £643.00, whichever is lower | One week’s pay or £669.00, whichever is lower |
41 or Above | One and a half week’s pay or £964.50, whichever is lower | One and a half week’s pay or £1003.50, whichever is lower |
The data in the table above is correct for the 2023/2024 tax year.
Redundancy pay is capped at 20 years service and is exempt from tax and NIC's up to £30,000.
We urge all NannyPaye clients to contact our team for further assistance on accurately calculating Redundancy Pay.
Further Support
If you are considering making your employee redundant, there is a proceedure to follow to ensure that you do this fairly and correctly. You can find more information, a guide and template letters in your Members Area in the section called 'Your Legal Documents'.