Frequently asked questions

Can my employer refuse to pay redundancy pay?

No — if you qualify (2+ years' service, genuine redundancy), statutory redundancy pay is a legal entitlement your employer cannot withhold.

Is redundancy pay tax free?

Yes — statutory redundancy pay is tax-free up to £30,000 in total termination payments. Amounts above £30,000 are subject to income tax.

How long does an employer have to pay redundancy pay?

Your employer must pay redundancy pay on or before your last day of employment — or as soon as reasonably practicable after that date if the calculation takes longer.

Can I be made redundant while on sick leave?

Yes — a genuine redundancy can proceed while you are on sick leave. However, selecting you for redundancy because of your sick leave is potentially discriminatory and may be automatically unfair.

Does TUPE protect my redundancy rights?

Yes — TUPE makes dismissal connected to a business transfer automatically unfair, and your service with the old employer counts towards any future redundancy pay entitlement.

What is the redundancy pay cap in the UK?

The weekly pay cap for statutory redundancy pay is £643 for 2026/27. The maximum you can receive is £22,530 (20 years × £643 × 1.5 age multiplier).

Can I be made redundant while on maternity leave?

Yes, but only in very specific circumstances — and you have stronger rights than other employees. You must be offered any suitable alternative vacancy before it is offered to anyone else.

Do I get notice pay if I'm made redundant?

Yes — notice pay and redundancy pay are separate entitlements. You receive both: your notice period (or pay in lieu) plus your statutory redundancy payment.

What happens to my pension if I'm made redundant?

Your pension pot is yours — redundancy does not affect it. You become a deferred member of any final salary scheme and can keep or transfer a defined contribution pot.

Can I be made redundant and then rehired by the same employer?

Yes — this is legal, but if you return quickly with no change to role or terms, HMRC and tribunals may challenge whether the redundancy was genuine.

How is a week's pay calculated for redundancy purposes?

A week's pay is your normal weekly wage, capped at £643 for 2026/27. For variable pay, it's averaged over the 12 weeks before the notice date.

What makes a redundancy selection unfair?

Redundancy selection is unfair if the pool is too narrow, the criteria are discriminatory, the process is a sham, or you were selected for a prohibited reason (pregnancy, disability, trade union activity).

What is ACAS early conciliation and do I have to do it?

ACAS early conciliation is a free, mandatory pre-step before bringing most Employment Tribunal claims. You must contact ACAS first — failing to do so means your claim will be rejected.

Can my new employer change my terms after a TUPE transfer?

No — changes to your terms connected to the TUPE transfer are void, even if you agree to them in writing. Only changes for a genuine ETO reason unconnected to the transfer are permitted.

What is constructive dismissal in the UK?

Constructive dismissal is when your employer's conduct is so serious that you are forced to resign. Legally it is treated as a dismissal — you can claim unfair dismissal if you have 2+ years' service.

Can my employer cut my pay without my agreement?

No — unilaterally cutting your pay is a breach of contract. Your employer must get your written consent, or give notice and terminate the old contract before offering a new one.

Can I be sacked while pregnant in the UK?

Dismissing an employee because of pregnancy or maternity is automatically unfair and unlawful sex discrimination under the Equality Act 2010. This is a day-one right — no qualifying period required.

What is ACAS early conciliation and is it mandatory?

ACAS early conciliation is a free mediation service you must use before filing most Employment Tribunal claims. It is mandatory — you cannot submit a claim without an ACAS certificate number.

How long do I have to bring an unfair dismissal claim?

You have 3 months less one day from your effective date of termination to bring an Employment Tribunal claim. You must contact ACAS first — the clock pauses during early conciliation.

Can I be made redundant while on sick leave in the UK?

Yes — genuine redundancy can happen while you are on sick leave. However, if the real reason is your absence or illness rather than a genuine business need, it may be unfair dismissal or disability discrimination.

What happens to my wages if my employer goes bust in the UK?

You become a preferential creditor for up to 8 weeks of unpaid wages (capped at £800/week). You can also claim statutory redundancy pay, notice pay, and holiday pay from the government's National Insurance Fund.

How is Statutory Sick Pay calculated in the UK?

Statutory Sick Pay (SSP) is £123.25 per week for 2026/27, paid from your first day of illness for up to 28 weeks. The old 3 waiting days and Lower Earnings Limit are both abolished from 6 April 2026.

What is the minimum wage in the UK in 2026?

The National Living Wage for workers aged 21+ is £12.21/hr from April 2025. Workers aged 18–20 get £10.00/hr, and under-18s get £7.55/hr.

Does my employer have to pay out unused PTO when I leave?

It depends on your state. There is no federal law requiring PTO payout. California, Colorado, and several other states treat accrued vacation as earned wages and require payout. Most states leave it to company policy.

What is the WARN Act and does it apply to me?

The federal WARN Act requires employers with 100+ employees to give 60 days' notice before mass layoffs or plant closings. Some states have 'mini-WARN' laws that apply to smaller employers.

How long does COBRA coverage last?

COBRA continuation coverage lasts 18 months for most qualifying events (job loss or reduced hours), extended to 36 months in certain circumstances such as divorce, death, or a dependent losing coverage.

Is severance pay taxable in the US?

Yes — severance pay is treated as regular wages and is subject to federal income tax, Social Security, Medicare (FICA), and state income tax where applicable.

Can my employer withhold my final paycheck?

No — withholding a final paycheck is illegal in every US state. Federal and state wage and hour laws require prompt payment, and some states require payment on the last day of employment.

What is at-will employment and what does it mean for me?

At-will employment means your employer can terminate you at any time, for any reason (or no reason), without notice — as long as the reason is not illegal. Most US private-sector employment is at-will.

What is the WARN Act and does it apply to me?

The federal WARN Act requires employers with 100+ employees to give 60 days' advance notice before mass layoffs or plant closings. If your employer violates it, you may be owed up to 60 days of back pay.