It used to be that most people were retired by the age of 65. Unfortunately however, this is no longer the case. If you are working over the age of 65, you may be doing it to support your lifestyle or the livelihood of others. You may just be doing it for the love of work!
Being made redundant is horrible at any age but do you know your rights if you lose your job later in life? Read on to find out more.
What is redundancy pay?
If your employer informs you that your job is no longer necessary to the business, you are likely to be made redundant. If this happens, you will receive redundancy pay, at a rate that is dependent on how long you have worked at the business.
Can I be made redundant because of my age?
No. Being made redundant based on your age would be classed as discrimination. The GOV.UK website clearly outlines what is classed as unfair dismissal.
If you feel you have been discriminated against, you should contact your employer’s HR department. If this doesn’t help you, you should make a claim to an employment tribunal.
How much redundancy pay could I expect to receive?
Your statutory redundancy pay settlement will depend on how long you have worked for your employer. The maximum amount of statutory redundancy pay you could receive is £15,750, and this is capped up to 20 years of service.
You will be entitled to:
- Half a week’s pay for each year of employment if under the age of 22
- A week’s pay for each year of employment if aged between 22 and 40
- A week and a half’s pay for each year of employment if aged over 41
Will I have to pay tax on redundancy pay?
You will have to pay tax on redundancy pay if the amount is more than £30,000. However, this does not include employee ‘perks’. Find out more in our blog on redundancy pay and tax.
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