Employee redundancy calculator
An employee made redundant when a company can no longer pay, including one going through administration or liquidation, is entitled to statutory redundancy pay based on age, length of continuous service and weekly pay, up to a statutory cap reviewed every April.
Estimate the redundancy payment
Based on the figures entered, this employee looks likely to qualify. They may also be owed unpaid wages, accrued holiday pay and statutory notice pay on top of this. If the company cannot pay, claim directly from the Redundancy Payments Service.
Worked example: change the figures to your own. Weekly pay is capped at the statutory limit (£751 for redundancies on or after 6 April 2026, reviewed each April), so the most any statutory claim can reach is £22,530. Needs at least 2 years continuous service. Confirmed by the Redundancy Payments Service on the actual facts of the case.
Source: Redundancy Payments Service, gov.uk.
Claiming when the company can't pay
If the employer is insolvent, an administrator or liquidator will usually direct employees to claim statutory redundancy pay, notice pay, holiday pay and unpaid wages directly from the Redundancy Payments Service rather than as an ordinary claim in the insolvency itself, since these payments are guaranteed by the National Insurance Fund regardless of what the company's own assets recover. See our company insolvency tracker for the wider picture of how often this happens, and CVL for what liquidation itself involves.
Common questions
Who qualifies for statutory redundancy pay?
An employee with at least 2 years continuous service who is dismissed by reason of redundancy. This applies whether the company is trading normally, in administration, or in liquidation.
Where does the money come from if the company has no funds left?
If the company cannot pay, employees can claim statutory redundancy pay, notice pay, holiday pay and unpaid wages directly from the government-backed Redundancy Payments Service, funded by the National Insurance Fund, rather than waiting on the insolvency process. The liquidator or administrator handling the company will normally point employees to this route.
Does this apply to a director as well as ordinary employees?
A director who was also genuinely employed under a contract of employment, paid through PAYE, can also claim, but the eligibility questions are different for a director. See our director redundancy calculator for that specific case.
Not sure where you stand?
If your employer has gone into administration or liquidation and you are not sure what you are owed or how to claim it, tell us what’s happening and we’ll help you understand your options, including when speaking to a Licensed Insolvency Practitioner is the right next step. Free and confidential.
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