When Should I Receive My Redundancy Payment? UK Guide

If you’ve been made redundant, one of the first questions you’ll have is when your redundancy payment will arrive. In the UK, employers are legally required to pay statutory redundancy pay promptly after your employment ends, but delays and misunderstandings are not uncommon.

This guide explains what redundancy pay is, when it should be paid, how much you’re entitled to, and what your options are if the payment is delayed or not made at all.

What Is a Redundancy Payment?

A redundancy payment is compensation you receive when your employer dismisses you because your job is no longer needed. You’re entitled to a statutory redundancy payment if you’ve worked for your employer continuously for at least two years and the redundancy is genuine.

There are two types of redundancy pay:                                                                    

• Statutory redundancy pay – the legal minimum you must receive under UK law

• Contractual or enhanced redundancy pay – offered by some employers as part of your contract or a redundancy policy

How Much Redundancy Pay Should I Receive?

As of the 2024–25 tax year, statutory redundancy pay is calculated as:

• Half a week’s pay for each full year you were under 22

• One week’s pay for each full year you were aged 22 to 40

• One and a half week’s pay for each full year you were aged 41 or over

Weekly pay is capped at £643, and the maximum statutory redundancy payment is £19,290.

Your actual payment may be higher if your employer offers enhanced terms in your employment contract or through a collective agreement.

When Should My Employer Pay Me My Redundancy Pay?

There is no fixed statutory deadline for redundancy pay, but in practice, your employer should pay it:

• On your final working day, or

• No later than your final payday

In most cases, redundancy pay is included in your final payslip along with outstanding holiday pay, notice pay (if applicable), and other final deductions.

If you haven't received the payment within a few days to a week after your termination date, you should contact your employer or HR department.

What If My Employer Does Not Pay Me?

If you haven’t received your redundancy pay within reasonable time after your employment ends (usually around 6 weeks), you should:

1. Raise the issue formally with your employer in writing

2. Request a clear timeline for when the payment will be made

3. Keep a record of your correspondence

If this doesn’t resolve the issue, you can:

• Contact ACAS for early conciliation

• Submit a claim to an employment tribunal (within 6 months of your final day)

• Seek legal advice if needed

What If Your Redundancy Payment Is Delayed?

Delays can occur due to admin issues, disputes over entitlement, or financial difficulties. If your employer agrees to pay but it is late, you may be entitled to:

• Interest on the unpaid sum

• Compensation for breach of contract if it causes financial loss

• A formal remedy via tribunal if you’re still not paid

What If Your Employer Is Insolvent?

If your employer has gone into administration or liquidation and cannot pay redundancy, you can claim from the Insolvency Service through the Redundancy Payments Service (RPS).

You may be able to claim:

• Statutory redundancy pay

• Up to 8 weeks’ unpaid wages

• Holiday pay and notice pay

Claims are made online via GOV.UK, and most payments are made within 6 weeks, depending on the complexity of the case.

Final Thoughts

You should receive your redundancy pay on or shortly after your last working day, usually no later than your final payslip. If it's delayed or unpaid, act quickly – you have rights under UK employment law and routes to recover what's owed.

Always request a written breakdown of your redundancy package, keep a record of your final payslip, and don't hesitate to escalate the matter if your employer fails to meet their obligations. Whether through ACAS, a tribunal or the Insolvency Service, support is available to ensure you receive what you’re entitled to.