Can my employer refuse to pay redundancy pay?

Statutory redundancy pay is a legal right under the Employment Rights Act 1996 (ERA 1996 s.135). If you have 2 or more years of continuous employment and your dismissal is by reason of redundancy, your employer is legally required to pay you. They cannot refuse, reduce, or waive the statutory minimum — any attempt to do so is unlawful.

If your employer refuses to pay, you have two options. First, you can write to them formally requesting payment and citing ERA 1996. Second, if they still refuse, you can bring a claim in the Employment Tribunal. The time limit is 6 months from the date your employment ended (an exception to the usual 3-month limit for employment tribunal claims). The Redundancy Payments Service can also make the payment on your employer's behalf if your employer is insolvent.

Note that your employer can lawfully refuse redundancy pay if you have fewer than 2 years' service, if you unreasonably refused an offer of suitable alternative employment, if you resigned rather than being dismissed, or if the dismissal was for gross misconduct in addition to a redundancy situation. Outside these specific circumstances, refusal is unlawful.