Statutory Redundancy Pay

The calculation follows section 162 of the Employment Rights Act 1996 and the schedule used by the GOV.UK redundancy calculator:

1. Count your complete years of continuous service at the date of dismissal, capped at 20 years. Section 162(3) reckons service backwards from the end of your employment, so where you have more than 20 years the cap keeps the most recent 20 — usually your highest-multiplier years. Years are counted by calendar dates, not averaged day counts, so exactly two years of service always counts as two.
2. For each year of service, working backwards from the dismissal date, apply the age-based multiplier: 1.5 weeks' pay for each full year in which you were 41 or over; 1 week for each full year aged 22–40; half a week for each full year under 22. The band is set by your age at the start of each 12-month block — only then were you that age for the whole year — so a year in which you turn 41 partway through still counts at 1 week, and the higher rate begins with the first complete year after your birthday.
3. Multiply the total weeks awarded by your week's gross pay, with that figure capped at the statutory limit of £751 per week for dismissals on or after 6 April 2026.

If you have fewer than 2 complete years of continuous service the calculator reports no statutory entitlement — two years is the qualifying threshold in section 155.

What this tool does not check: whether you count as an employee (rather than a worker or contractor), whether the dismissal is legally a redundancy, whether you unreasonably refused suitable alternative employment, or any enhanced contractual redundancy scheme — all of which can change the outcome. It always applies the current £751 cap, so dismissals from earlier years (when a lower cap applied) will be slightly overstated. Statutory redundancy pay is tax-free up to £30,000 combined with any enhanced redundancy your employer offers; notice pay and holiday pay are taxed separately.