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In certain circumstances, employees who have lost their job are entitled to a payment from their employer, regardless of whether they have another job to go to or not.

This right was introduced in the Redundancy Payments Act 1965 and is now contained in the Employment Rights Act 1996 (ERA 1996).

An employee being made redundant may be eligible for certain other rights as well as redundancy pay, including:

A notice period

A consultation with their employer

The option to move into a different job

Time off to find a new job.

However, under the ERA 1996, an employee has to fulfil certain conditions to be entitled to redundancy pay:

They were an employee

They were dismissed because of redundancy.

They have been continuously employed for two years

They have been dismissed

The amount of redundancy pay is based on:


Gross average wage

Length of continuous employment

Employees must be selected for redundancy in a fair way e.g. because of level of experience or capability to do the job.

An employee cannot be chosen for redundancy because of factors which might contravene the Equality Act 2010 or are unfair – such as age, gender, disability, pregnancy. If this happens, it might be classed as an unfair dismissal.

Employees may be offered a Settlement Agreement by their employer – formerly called a Compromise Agreement – to prevent the employee making a claim for redundancy at an Employment Tribunal.

This is a binding agreement, and it is vital to take expert legal advice before accepting a Settlement Agreement.

If an employer dismisses an employee by reason of redundancy, he has several statutory obligations to fulfil, in addition to making the redundancy payment. An employer may be liable in a claim for unfair dismissal if it fails to act fairly in making an employee redundant.

Our employment law solicitors have a success track record in advising employers on their statutory obligations as an employer, as well as claims for unfair dismissal brought by employees at an Employment Tribunal.

Our employment lawyers act on behalf of claimants and respondents in all Employment Tribunal related matters.

We have a wealth of experience in negotiating Settlement Agreements and our employment solicitors can represent all types of employers, both large and small – as well as individual employees and collective employees in matters relating to the Employment Rights Act 1996 and redundancy.

If you have a problem with employment and wish to make a claim it is important to take legal advice and find out what your rights are as soon as possible.

Service Fees

We operate a transparent fee scale – and can offer a range of competitively priced funding options for claimants and respondents:


Damage based fee.

Contingency fee.

Fixed fees (for specific tasks).

Insurance funded cases.

Some cases can also be funded with Home Contents Insurance or Contents/Buildings Insurance, which has additional Employment Protection Cover. We will advise on the best funding option at the initial client meeting.

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Solicitors Regulation Authority with Registration No: 639404.
Atlantic Solicitors
is the trading name of Atlantic Solicitors Limited,
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