In the UK, employees with 2 or more years' service usually get statutory redundancy pay of half a week's, one week's or one and a half weeks' pay per full year, depending on age. As of October 2026, GOV.UK caps weekly pay at £751 and the total at £22,530. Australia uses a different scale based on service, from 1 year.
The rules sound similar in both countries and work quite differently, so I've split them. Contracts can always give more than the statutory minimum; they can never give less.
UK: how statutory redundancy pay is worked out
| Age during each full year of service | Pay for each full year |
|---|---|
| Under 22 | Half a week's pay |
| 22 or older, but under 41 | One week's pay |
| 41 or older | One and a half weeks' pay |
- Length of service is capped at 20 years.
- A week's pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.
- For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum statutory redundancy pay is £22,530 (as of October 2026). Earlier redundancies have lower caps.
- You have 6 months from the date your job ends to apply.
- If you were on furlough and paid less than usual, it's based on what you'd normally have earned.
GOV.UK's redundancy pay calculator does the sums from your age, service and weekly pay.
UK: who doesn't get statutory redundancy pay
You're not entitled if your employer offers to keep you on, or offers suitable alternative work that you turn down without good reason. Dismissal for misconduct isn't redundancy. GOV.UK also excludes some groups, including crown servants and members of the armed forces or police, apprentices who aren't employees at the end of their training, and a domestic servant who's a member of the employer's immediate family.
Lay-offs can count too. If you've been temporarily laid off, without pay or with less than half a week's pay, for more than 4 weeks in a row or more than 6 non-consecutive weeks in a 13-week period, you can write to your employer to claim. You must do it within 4 weeks of your last non-working day in that period.
UK: notice and notice pay
| Length of employment | Statutory redundancy notice |
|---|---|
| One month to 2 years | At least one week |
| 2 to 12 years | One week for each year |
| 12 years or more | 12 weeks |
On top of redundancy pay, your employer should either pay you through your notice period or pay you in lieu of notice. Notice pay is based on your average weekly pay over the 12 weeks before notice starts. If your contract includes payment in lieu of notice, your employment can end straight away and you get the basic pay you'd have earned in the notice period.
UK: is redundancy pay taxed?
GOV.UK says statutory redundancy pay under £30,000 isn't taxable, as of October 2026. A termination payment can also include holiday pay, unpaid wages and company benefits such as bonuses, and what you pay tax and National Insurance on depends on what's in it.
Australia: redundancy pay under the National Employment Standards
The Fair Work Ombudsman says an employee may be entitled to redundancy pay if they have at least one year of continuous service, are covered by the national workplace relations system, and their employer has at least 15 employees. Most small business employers don't have to pay redundancy pay under the NES.
| Continuous service | Redundancy pay under the NES |
|---|---|
| 1 year, less than 2 | 4 weeks |
| 2 years, less than 3 | 6 weeks |
| 3 years, less than 4 | 7 weeks |
| 4 years, less than 5 | 8 weeks |
| 5 years, less than 6 | 10 weeks |
| 6 years, less than 7 | 11 weeks |
| 7 years, less than 8 | 13 weeks |
| 8 years, less than 9 | 14 weeks |
| 9 years, less than 10 | 16 weeks |
| At least 10 years | 12 weeks |
Yes, the scale drops back to 12 weeks at 10 years; Fair Work has a separate explainer on why. Redundancy pay is paid at the employee's base rate for ordinary hours, without bonuses, loadings, allowances, overtime or penalty rates, and unused annual leave and long service leave are paid out on top. Awards and enterprise agreements can set different entitlements. Unpaid leave doesn't count towards service but doesn't break it either.
For employers
- Check the contract first: it may promise more than the statutory amount.
- Work out continuous service and the right weekly pay figure for the country you're in.
- Give at least the statutory notice, or pay in lieu if the contract allows.
- Pay outstanding wages and holiday with the final pay.
A good HR system for a small business keeps the service dates you'll need, and UK payroll software handles the final pay and tax treatment.
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My verdict
If you're an employee, run the official calculator before any meeting, then check your contract for anything better than the statutory figure. If you're the employer, the UK and Australian minimums are fixed and public, so the risk isn't the amount; it's getting service, notice and the final pay wrong under pressure.
Frequently asked questions
How much redundancy pay will I get in the UK?
Half a week's, one week's or one and a half weeks' pay for each full year of service depending on your age, with service capped at 20 years and weekly pay capped at £751 as of October 2026.
What is the maximum statutory redundancy pay?
For redundancies on or after 6 April 2026, GOV.UK says the maximum is £22,530.
How long do I need to work for redundancy pay in the UK?
Normally 2 years or more with your current employer.
Is redundancy pay taxable?
In the UK, statutory redundancy pay under £30,000 isn't taxable. Other parts of a termination payment, such as holiday pay, can be.
Do small businesses in Australia have to pay redundancy pay?
Most small business employers don't have to pay redundancy pay under the National Employment Standards. The NES entitlement applies where the employer has at least 15 employees.
What's the time limit to claim redundancy pay?
In the UK, you have 6 months from the date your job ends.
What notice do I get if I'm made redundant in the UK?
At least one week if employed between one month and 2 years, one week per year between 2 and 12 years, and 12 weeks after 12 years.
