How is my statutory redundancy pay affected if I am paid in lieu of notice?
Where you are dismissed with a payment in lieu of notice, you are entitled to add on the minimum statutory notice period to the actual time you have been employed on the date your employment ends. Your minimum statutory period of notice is 1 week’s notice for the first 2 year’s service and then 1 further week for every additional year worked up to a maximum of 12 weeks.
So if, for example, you had five years and 11 months’ service, you would be entitled to five weeks’ statutory minimum notice. If you had been dismissed with a payment in lieu of notice, your redundancy payment would be calculated based on six years of service. This is because the five weeks’ minimum notice would have taken you past the anniversary date when you commenced employment.