Q: I recently accepted voluntary redundancy from my company and have been given an official finishing date. When is the latest that the company can pay my redundancy package?
A: In instances where an employee is entitled to statutory redundancy pay, the employer should pay when they leave the job or very soon afterwards.
In any event, the employer must make the redundancy payment within six months of the end of the person’s employment.
If the employer says they are not willing to pay the employee redundancy pay or fails to do so within the six months of them leaving, the employee can make a claim to an employment tribunal.
If, in the meantime, their employer goes bankrupt, an employee can approach the Department for Trade and Industry (DTI) to make a claim from the National Insurance Fund.
However, the DTI will only pay out statutory redundancy pay.
They will not cover any enhanced redundancy payments that an employee was due to receive from their employer.
An employee is also only entitled to statutory redundancy pay if they have worked continuously for the same employer for more than two years.
Individuals can also lose out on redundancy payments if they resign before the employer has given them notice that their job is coming to an end.
TUC senior employment rights officer