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Redundancy is relevant to all and can affect Nannies

Redundancy is a difficult time and many smaller employers are unaware of the terms of making an employee redundant. For the employees point of view through loyalty to working for someone over a period of time redundancy can in some cases help them financially whilst trying to source alternative work. If you have been in your workplace for 2+ years and your services are no longer required this constitutes redundancy. This week several of my previous nannies have contacted me to say their job has come to an end and having been there for 4,5 and 10 years they have just been given one months notice. So employment law is complicated and for this reason i have been on ACAS website to give you correct information. Please note that an employer can offer you alternative employment but if the terms and conditions change you do NOT have to accept it. Any queries please contact ACAS who will give you Free advice and its up to date and is inline with employment law.

Redundancy pay

You’re entitled to redundancy pay if you have a contract and have worked continuously for your employer for 2 years before they make you redundant.

How much redundancy pay you get depends on your age and how long you’ve worked for your employer.

You may get more than the ‘statutory’ amount (the minimum the law says you should get) if it’s included in your contract.

How redundancy pay is worked out

Redundancy pay is based on:

  • your earnings before tax (gross pay)

  • the years you've worked for your employer

  • your age

If you're aged 22 or under
Your employer must give you half a week's pay for each full year you've worked.
If you're aged 22 to 41

Your employer must give you:

  • 1 week's pay for each full year you worked after age 22

  • half a week's pay for each full year you worked before that

If you're aged 41 or over

Your employer must give you:

  • 1.5 week's pay for each full year you worked after age 41

  • 1 week's pay for each full year you worked when you were between 22 and 41

  • half a week's pay for each year you worked before age 22

Your employer must tell you in writing how your redundancy pay has been worked out.

Calculate your redundancy pay

You can use the redundancy pay calculator on GOV.UK this link opens in a new window.

You’ll need to know your weekly pay (before tax and other deductions) to use the calculator.

How you'll get paid

Your employer should tell you:

  • when you’ll get your redundancy pay – this should be on your last day or on a date soon after if you both agree – for example in your final pay

  • how you’ll get paid, for example in your monthly pay or separate payments

Up to £30,000 of redundancy pay is tax free.

You may not be eligible for statutory redundancy pay if your employer offers you a suitable alternative job and you turn it down.

Limits on redundancy pay

There are limits to how much redundancy pay you can get. You can only get it for up to 20 years of work.

This means, for example, that if you’ve worked for your employer for 22 years you’ll only get redundancy pay for 20 of those years.

The maximum weekly amount used to calculate redundancy pay is £525 – even if your wage is more per week.

The maximum statutory redundancy pay you can get in total is £15,750.

You have to claim for any unpaid redundancy within 6 months of your job ending.

If your employer does not pay you

If you do not get your redundancy pay you need to:

  1. Write to your employer as soon as you think you should have been paid – normally your last day or a date soon after if you both agreed, for example your final pay

  2. Tell them what you’re entitled to and include any evidence to back it up, for example a letter confirming your first day at work for them or email confirming a recent pay increase.

Call the Acas helpline if you still do not get paid after writing to your employer. We can find out if your employer will agree to early conciliation this link opens in a new window – a way to resolve disputes without going to an employment tribunal.

Further help:

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