Can I work after taking redundancy?

Can I work after taking redundancy?

A Typically there are no restrictions on you taking up employment after you are made redundant. Unless the terms and conditions of your redundancy package explicitly forbids you from taking up employment in the near future, you should not worry about getting another job.

What is a normal redundancy package?

For each full year you’ve worked for your employer, you get: up to age 22 – half a week’s pay. age 22 to 40 – 1 week’s pay. age 41 and older – 1.5 weeks’ pay.

Can you negotiate a redundancy package?

When you’re about to be made redundant, you have very little to lose by trying to negotiate a better redundancy package from your employer. Your employer wants to avoid subsequent legal action so will often be more flexible than you might expect.

What should a redundancy package include?

Statutory redundancy pay

  • Half a week’s pay for each complete year of service that you were aged under 22.
  • A full week’s pay for each complete year of service that you were aged between 22 and 40.
  • A week and a half’s pay for each year that you were aged 41 or older.

    How much do you get if you are made redundant after 22 years?

    A 45-year-old employee is being made redundant after working for their employer for 22 years. Their average weekly pay is £300 before tax. They do not get anything for 2 of the years they worked, because the maximum statutory redundancy pay is capped at the last 20 years. In total, they’re entitled to £6,600 statutory redundancy pay.

    When does an employer have to follow redundancy procedures?

    Employers must follow certain processes when an employee is made redundant. Redundancy occurs where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff.

    Do you have to pay tax on redundancy pay?

    The first £30,000 of your redundancy pay is tax free. For any redundancy pay over £30,000, your employer will take the tax from your redundancy pay at your normal tax rate. However, if your employer pays you your final pay after you leave your job, they’ll take the tax from your redundancy pay at the basic rate of 20%.

    Do you get redundancy pay if you accept an alternative job?

    You won’t get any redundancy pay if you accept an alternative job with your current employer before the end of your notice period. If you’ve worked for your employer for 2 years at the end of your notice period, you’re entitled to time off to apply for jobs or go on training.

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