1

I know that UK redundancy pay is based on a week's pay for each full year worked, with some adjustment for age which we can ignore. There are also various caps and minimum periods to ignore.

But consider a situation where a full-time employee has just under 5 years service (i.e. would only be entitled to 4 weeks redundancy pay). An opportunity arises for a few months part time (50%, same salary pro-rata) work, taking the length of service to over 5 years, and therefore 5 weeks redundancy pay. Would this 5 weeks then be 5 weeks at 50%, meaning a reduction in redundancy pay for working longer?

Very closely related bonus question: If the option arose to be made redundant at just under 5 years then come back part time for a few months (accruing no further redundancy pay as the service would be less than a year), is there a minimum period to be out of work or out of that particular employment without causing eligibility problems?

2

You are entitled to the average of what you have earned over the past twelve weeks (up to the date of the redundancy notice) - so in this case, probably about equal to 75% of full-time salary, rather than half. (That link has a calculator: it may be worth plugging the details in and seeing what it suggests)

However, per Citizens Advice, there is a special case if you agree to "short-time working" - which may or may not be the case here, depending on exactly how it is defined.

If you’ve been laid off or put on short-time working, and then made redundant, your redundancy pay will be based on your usual weekly pay when you did your normal hours.

The only time this won’t apply is if you agreed to a permanent change in the number of hours you work.

2
  • Unfortunately this would be more than 12 weeks at the lower rate so the averaging wouldn't help. And it would be a different role that I'd have to apply for so I doubt the exemption CA describe could be made to apply - not worth risking. The calculator, BTW, assumes a fixed salary so the averaging is up to the user.
    – Chris H
    Jan 5 at 21:33
  • Although based on how the same employer has handled fixed term extensions in the past "at the date of the redundancy notice" could turn out to be at the start of the part time bit
    – Chris H
    Jan 5 at 21:35

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