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 £751 for 2026/27. The maximum you can receive is £22,530 (20 years × £751 × 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 £751 from 6 April 2026. 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.

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 £12.71/hr from April 2026. Workers aged 18–20 get £10.85/hr, and 16–17-year-olds and apprentices get £8.00/hr.

What is a settlement agreement in the UK?

A settlement agreement is a legally binding contract where you agree to waive Employment Tribunal claims in exchange for a payment. You must receive independent legal advice before signing — otherwise it is not valid.

How much is a settlement agreement worth?

A typical settlement agreement includes statutory redundancy pay (if applicable), notice pay (PILON), an ex gratia payment of 1–6 months' salary depending on claim strength, and a legal fees contribution of £500–£1,500.

Is a settlement agreement taxable in the UK?

The first £30,000 of total termination payment is tax-free. Amounts above £30,000 are subject to income tax. Pay in lieu of notice (PILON) is always fully taxable, regardless of the threshold.

How much compensation can I get from an Employment Tribunal?

Unfair dismissal: basic award up to £22,530 plus compensatory award capped at £123,543 (or 52 weeks' pay). Discrimination claims are uncapped — you can also claim injury to feelings (Vento bands: £1,300–£62,900).

What are Vento bands in discrimination claims?

Vento bands are the ranges used for injury to feelings awards in discrimination claims. Lower band: £1,300–£12,600 (less serious). Middle: £12,600–£37,700. Upper: £37,700–£62,900 (most serious). Reviewed annually.

What is PILON (pay in lieu of notice)?

PILON is a payment made instead of requiring you to work your notice period. Your employer can pay your notice in a lump sum and end employment immediately. Since April 2018, PILON is always fully taxable.

What is garden leave in the UK?

Garden leave means you remain employed and on full pay during your notice period but are told not to come to work. Your employer keeps you away from clients, colleagues, and confidential information while the notice period runs.

Can my employer change my employment contract without my consent?

No — your employer cannot unilaterally change the terms of your contract without your agreement. If they do, this is a breach of contract and may amount to constructive dismissal if the change is fundamental.

What is a zero-hours contract in the UK?

A zero-hours contract guarantees no minimum hours — your employer offers work when available and you can accept or decline. You still have statutory rights including national minimum wage, holiday pay, and (usually) worker status.

What is gross misconduct in UK employment law?

Gross misconduct is conduct so serious that it fundamentally breaches the employment relationship — allowing the employer to dismiss without notice. Examples include theft, violence, fraud, serious health and safety breaches, and gross insubordination.

What is the Employment Tribunal in the UK?

The Employment Tribunal is an independent judicial body that resolves employment disputes — unfair dismissal, discrimination, unlawful deductions from wages, and more. Claims must generally be brought within 3 months of the relevant act, after ACAS early conciliation.

How does salary sacrifice (salary exchange) work in the UK?

Salary sacrifice, or salary exchange, reduces cash pay for a pension contribution or other benefit. Tax and NI treatment depends on the benefit.

What is auto-enrolment pension in the UK?

Auto-enrolment requires employers to automatically enrol eligible workers into a workplace pension. Minimum contributions are 8% of qualifying earnings total — at least 3% from the employer, the remainder from the employee.

What is disability discrimination in the UK?

Disability discrimination under the Equality Act 2010 occurs when someone is treated unfavourably because of a disability — a physical or mental impairment that has a substantial, long-term adverse effect on normal day-to-day activities.

Can my employer make deductions from my wages?

Your employer can only deduct from your wages if the deduction is authorised by your contract, agreed in writing beforehand, or required by law (such as income tax and NI). Unauthorised deductions can be recovered at the Employment Tribunal.

What is a TUPE transfer?

TUPE (Transfer of Undertakings — Protection of Employment) protects your employment rights when the business or service you work for changes hands. Your contract transfers automatically on identical terms, and dismissal connected to the transfer is automatically unfair.

Can I claim unfair dismissal without 2 years' service?

Generally no — unfair dismissal requires 2 years' continuous service. But there are important exceptions: dismissals connected to pregnancy, whistleblowing, trade union activities, discrimination, or asserting a statutory right are automatically unfair from day one.

Do I get paid for unused holidays when I leave a job?

Yes — when you leave a job, your employer must pay you for any statutory holiday you have accrued but not taken. This applies regardless of how you leave (resignation, redundancy, or dismissal).

What is the National Living Wage in 2026?

The National Living Wage (for workers aged 21+) is £12.71/hour from 1 April 2026. Workers aged 18–20 receive £10.85/hr, and workers aged 16–17 and apprentices receive £8.00/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 Fair Labor Standards Act (FLSA)?

The FLSA is the primary US federal law governing minimum wage, overtime pay, recordkeeping, and child labour standards. It applies to most private and public sector employers. Minimum wage: $7.25/hr federal (many states are higher). Overtime: 1.5× for hours over 40 per week.

What is the FMLA (Family and Medical Leave Act)?

The FMLA gives eligible employees up to 12 weeks of unpaid, job-protected leave per year for serious health conditions, childbirth, adoption, or caring for a seriously ill family member. Applies to employers with 50+ employees.

Can my employer fire me while I am on FMLA leave?

Generally no — firing an employee because they took or requested FMLA leave is illegal retaliation. However, employers can still terminate for legitimate, pre-existing reasons (performance, layoffs) if they can prove the reason is unrelated to the FMLA leave.

What is the ADA and what disability rights do employees have?

The Americans with Disabilities Act (ADA) prohibits discrimination against qualified individuals with disabilities and requires employers with 15+ employees to provide reasonable accommodations unless doing so causes undue hardship.

What is Title VII of the Civil Rights Act?

Title VII prohibits employment discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), and national origin. It covers employers with 15+ employees. Enforced by the EEOC.

How do I file an EEOC complaint?

File a charge of discrimination with the EEOC within 180 days (or 300 days in dual-jurisdiction states) of the discriminatory act. You can file online, by mail, or in person at an EEOC office. You must exhaust this process before suing in federal court.

How does overtime law work in the US?

Under the FLSA, non-exempt employees must receive 1.5× their regular rate for hours worked over 40 in a workweek. Overtime is calculated weekly — you cannot average over two weeks. Many states have additional daily overtime rules.

Are salaried employees exempt from overtime in the US?

Not automatically. Salaried employees are only overtime-exempt if they meet both a salary threshold ($684/week minimum) AND a duties test — executive, administrative, or professional roles. Being salaried alone does not make you exempt.

What whistleblower protection do employees have in the US?

Federal law protects employees from retaliation for reporting violations of specific laws. Over 20 federal statutes cover different sectors. The DOL enforces most of them. Many states have broader protections covering any reporting of illegal activity.

What is a non-compete agreement in the US?

A non-compete agreement restricts you from working for competitors or starting a competing business for a period after leaving. Enforceability varies hugely by state — California, North Dakota, and Minnesota ban them entirely; others enforce reasonable ones.

What is COBRA health insurance?

COBRA lets you continue your employer's group health insurance for up to 18 months after leaving a job — but you pay the full premium including the employer's share, which makes it expensive. It applies to employers with 20+ employees.

What is the federal minimum wage in the US in 2026?

The federal minimum wage is $7.25/hour — unchanged since 2009. Most states and many cities set higher rates. Tipped employees have a federal tip credit minimum of $2.13/hour (if tips bring them to at least $7.25/hour).

Can my employer monitor my work computer in the US?

Yes — employers in the US have broad rights to monitor work-owned devices and networks with little restriction. Employees have very limited privacy expectations on employer-owned equipment. Some states require disclosure of monitoring practices.

What is wrongful dismissal in Canada?

Wrongful dismissal in Canada means being dismissed without sufficient notice or pay in lieu. Unlike UK unfair dismissal, it is a breach of contract claim — courts focus on reasonable notice, not the fairness of the decision to dismiss. Awards range from weeks to 24+ months' salary.

How much notice is required when terminating employment in Canada?

Statutory minimum notice ranges from 1–8 weeks depending on province and service length. Common law 'reasonable notice' can be much longer — typically 1 month per year of service for senior employees, up to 24+ months. Most employers pay in lieu.

What is constructive dismissal in Canada?

Constructive dismissal in Canada occurs when an employer makes a fundamental, unilateral change to an employee's terms — such as cutting salary, changing job duties, or relocating them — entitling the employee to treat themselves as dismissed and claim reasonable notice pay.

What is Employment Insurance (EI) in Canada?

Employment Insurance (EI) is a federal program providing temporary income replacement for workers who lose their job through no fault of their own, become sick, or take parental leave. Benefits are 55% of average insurable earnings, up to a maximum of $695/week for 2026.

What is a probation period in Canada?

Probation periods in Canada are typically 3 months under provincial employment standards acts — during this time, employers can dismiss without notice. After probation, full termination notice rights apply. Probation must be written into the contract to be effective.

How do I file a human rights complaint in Canada?

Human rights complaints in Canada are filed with the relevant provincial human rights tribunal or commission — or the Canadian Human Rights Commission for federal-sector employers. There is no filing fee, no minimum service period, and no cap on compensation for injury to dignity.

What is a Record of Employment (ROE) in Canada?

A Record of Employment (ROE) is a document your employer must issue when your employment ends or you stop working. It is needed to apply for EI benefits. Your employer must issue it within 5 days of your last day or final pay period.

What is unfair dismissal in Australia?

Under the Fair Work Act 2009, a dismissal is unfair if it was harsh, unjust, or unreasonable. You must have completed the minimum employment period (6 months, or 12 months for small business) to make an unfair dismissal claim to the Fair Work Commission.

How do I make an unfair dismissal claim in Australia?

Lodge an application with the Fair Work Commission (FWC) using Form F2 within 21 days of your dismissal taking effect. The FWC will hold a conciliation conference first. If unresolved, a formal hearing follows. Compensation is capped at approximately $46,500.

What is a General Protections claim in Australia?

A General Protections claim (Part 3-1 of the Fair Work Act) protects employees from adverse action — including dismissal, demotion, or discrimination — taken because they exercised a workplace right, engaged in industrial activity, or had a protected attribute.

What is a casual employee in Australia?

A casual employee in Australia has no guaranteed ongoing hours, no commitment to ongoing employment, and receives a 25% casual loading on top of the minimum wage instead of paid leave. After 12 months of regular patterns, they have the right to convert to permanent employment.

What is long service leave in Australia?

Long service leave is a leave entitlement for long-serving employees — typically 8.67 weeks' leave after 10 years of continuous service with the same employer. Rates and qualifying periods vary by state and territory.

What is the superannuation guarantee rate in 2026?

The Superannuation Guarantee (SG) rate is 12% for the 2026/27 financial year (up from 11.5% in 2025/26). Employers must pay this into your super fund on top of your salary for most employees earning over $450/month.

What is government-funded parental leave in Australia?

The Australian Government Parental Leave Pay scheme provides up to 22 weeks of pay at the National Minimum Wage for eligible parents (from July 2025, expanding to 26 weeks by July 2026). Paid by Centrelink via the employer.