Maximum redundancy payment?? ?

Question

If someone has served 35 years continuous service for a company and then gets made redundant, will they get 35 years payment or is there a cap? I heard there was a 20 yr cap and have checked on the Employment rights act 1996 but cannot see anything...., help?

Answer 1

No, there is no cap as far as I know ... you should be looking at two weeks' pay for each full year that you've worked.  The payment is based on age with the highest bracket being over 40, but obviously anyone who has worked for a company for 35 years must be over 40.  As someone else has said, you can verify this on the BERR site.

Answer 2

You can work it out exactly on this government web site ready reckoner

20 years is the maximum

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Answer 3

Unless you have a negotiated and signed agreement for a company redundancy package,then you will only be entitled to the normal maximum state redundancy payout,which is not a lot.This is the very reason why a lot of well paid workers did,nt go for pay rises or silly bonus agreements.We went for increases on the basic and/or good separation packages and redundancy agreements,the companies never envisaged all the contracting out that is ruining companies  and quality service,so they signed,thinking it would never happen and they would never have to pay out.

Answer 4

Depends on the Company ..

The larger the Company the more likley you will get a lot more than the minimium demanded by law (almost all large Companies will pay redundancy based on your full 'average' pay (not capped) and the full 35 years ..)