Statutory redundancy pay in Northern Ireland

You qualify for statutory redundancy pay in Northern Ireland if you are an employee with at least two years of continuous service and your job is made redundant. The amount depends on your age, your years of service (only the last 20 count) and your weekly pay, which is capped at £783. That cap puts the ceiling at £23,490. These figures come from the nidirect redundancy page, which does not give a start date for the current cap, so check it before you rely on a calculation.

Who qualifies

The rule is two years of continuous employment with the same employer, counted to the date your employment ends, which is normally the last day of your notice. A fixed-term contract of two years or more that ends without renewal because of redundancy also qualifies. The continuous service guide explains what breaks or keeps a run of service in the public sector.

Nothing is due if your employer keeps you on, or offers suitable alternative work that you refuse without good reason. Redundancy is a dismissal because your employer needs fewer people, so it is also not redundancy if the employer immediately takes on a direct replacement for you.

How the amount is worked out

For each full year of service, you get:

Your age in that year of service	Pay for each year
21 or under	half a week
22 to 40	one week
41 or over	one and a half weeks

A week’s pay includes regular overtime, bonuses and commission, up to the £783 cap. Only the most recent 20 years count, and the maximum payment is £23,490.

Say you are 30, earn £500 a week and have five years of service. Every one of those years falls in the 22 to 40 band, so you get five weeks’ pay, which is £2,500. If your service spans more than one age band, add up each band separately. The nidirect page has worked examples for that, and the take-home pay calculator shows what your normal monthly pay looks like once the payments stop.

Many public sector employers pay more than the statutory minimum under their own schemes. nidirect says your contract may offer a more generous package, so read your terms. The Northern Ireland Civil Service has its own scheme, covered in the NICS redundancy compensation scheme guide.

Tax

nidirect says redundancy pay under £30,000 is not taxable. Pay in lieu of notice and other elements can be taxed differently, so ask HMRC if you are unsure how your payment breaks down.

Who pays and when

Your employer pays. If the employer is insolvent, you may be able to get the money from the government. You do not have to claim it. You should receive it on your last day of notice, shortly afterwards or on your next payday, together with a written statement of how it was calculated.

If it does not arrive, write to your employer asking for payment. A trade union official or another employee representative can help. If the employer still refuses or cannot pay, you can take the matter to an Industrial Tribunal. Claims for unpaid redundancy pay, including the tribunal claim, must be made within six months of your job ending. The industrial tribunals in Northern Ireland guide covers how a claim works.

Alternative jobs and the trial period

Your employer is expected to offer a suitable alternative job before making you redundant. Suitability depends on the terms of the job, your skills and circumstances, and the pay, status, hours and location. You have the right to a four-week trial period in the new job, which can be extended in writing if you need training.

If you decide during the trial that the job is not suitable and you give notice, your right to statutory redundancy pay is unaffected. If you reach the end of the trial without giving notice, that right ends. Unreasonably refusing a suitable offer can also cost you the payment, and an Industrial Tribunal can decide disputes about suitability.

Temporary lay-off

If you are laid off without pay, you can claim redundancy pay by writing to your employer after more than four weeks in a row, or six weeks in any 13-week period, without work or pay.

What to check

• Your exact start date and any gaps, because the two-year test turns on them.
• The written statement of your pay calculation, line by line.
• Whether your contract or a collective agreement gives more than the statutory sum.
• The six-month deadline, if anything is unpaid.

Free help is available from the Labour Relations Agency, Advice NI and your trade union. The Redundancy Payments Helpline can check a calculation, and the number is on the nidirect page.