# Can a 70 year old be made redundant?

## Can a 70 year old be made redundant?

But instead of scrapping the mandatory retirement age or opting for a default age of 70, the government has opted for 65 as a default retirement age. Workers over 65 who lose their jobs other than by retirement will have the right to claim compensation for unfair dismissal or a redundancy payment.

## How many years service is redundancy capped at?

20 years
Length of service is capped at 20 years. Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.

At what age does redundancy payments stop?

There is no upper or lower age limit on the entitlement of statutory redundancy pay. Your employer will have to pay you the statutory minimum redundancy payment even if you are under 18.

Can I be made redundant because of my age? No. Being made redundant based on your age would be classed as discrimination.

### How much of redundancy is tax free?

Up to £30,000 of redundancy pay is tax free. Any non-cash benefits that form part of your redundancy package, such as a company car or computer, will be given a cash value. This will be added to your redundancy pay for tax purposes. This might then take your total redundancy pay over the £30,000 limit.

### What is the maximum amount of redundancy pay?

one week’s pay for each year of employment between the ages of 22 and 40; one and a half week’s pay for each year of employment over the age of 41; a maximum of 20 years’ employment can be taken into account; and. there is a statutory maximum limit to a week’s pay.

What is the maximum payout for redundancy?

Do I get redundancy if company closes?

If you close your business, you will have to make your employees redundant. Depending on how many employees you have and how long you have employed them for, you will have to: make statutory redundancy payments.

## What is a good redundancy package?

Statutory redundancy is calculated using a formula which is based on the length of service, your age and your weekly pay. 0.5 week’s pay for each full year worked when you’re under 22; 1 week’s pay for each full year worked when you’re between 22 and 41; 1.5 week’s pay for each full year worked when you’re 41 or older.

## How can I maximize my redundancy payout?

Negotiating a higher redundancy payout – 10 top tips

2. Check your contract of employment.
3. Check your employer’s redundancy policies.
5. (Almost) always seek to negotiate the financial values.
6. Be clear and polite when negotiating.
7. Take good notes of meetings.

Does redundancy pay count as income?

Your redundancy payment won’t be treated as income when working out how much benefits you can get. It will be treated as capital. This means that the amount you get in redundancy payment will be added to any other savings you have.

What are you entitled to if you are made redundant?

If you’re being made redundant, you might be entitled to redundancy pay. You’ll only get redundancy pay if it is a genuine redundancy – check if your redundancy is fair. ‘contractual’ redundancy pay – extra money your contract says you can get on top of the statutory amount.

### Can you negotiate redundancy pay?

The payment is based on age, gross weekly salary and length of service. If so, the higher redundancy payment should be made, rather than the statutory amount. Often it is possible to negotiate a severance payment with your employer, especially where there are question marks over the validity of the redundancy.

### What happens if a company Cannot pay redundancy?

If your employer is insolvent there may not be enough funds available to make redundancy payments. However, you can claim payments from the National Insurance fund up to a set maximum to cover your redundancy payment, your unpaid wages, accrued holiday pay and notice pay. Claims must be made to the Insolvency Service.

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.