Understanding your redundancy settlement in the UK
How to review final pay, redundancy compensation and P45 after job loss in the UK — official guidance without invented figures.
When employment ends, you should receive outstanding wages, accrued holiday pay and — if eligible — statutory or contractual redundancy pay. Use GOV.UK and HMRC guidance for amounts; this page helps you organise the review.
Final pay versus redundancy compensation
Your final payslip should cover salary to your last day, unused statutory holiday and any contractual bonuses due.
Statutory redundancy pay applies when you have sufficient qualifying service and the employer is making redundancies — amounts are set in legislation on GOV.UK.
Contractual redundancy may exceed the statutory minimum; check your contract and staff handbook.
Checking each line item
Request an itemised statement. Verify tax, National Insurance and pension deductions.
The first £30,000 of qualifying redundancy payments may receive favourable tax treatment — confirm current HMRC rules.
Do not sign a settlement agreement waiving claims without independent legal advice where required.
Settlement agreements and waivers
Employers often offer enhanced payments in exchange for waiving tribunal claims. ACAS guidance explains the process.
You typically need independent legal advice for the waiver to be binding.
Compare the offer against your statutory and contractual entitlements before deciding.
P45, references and records
You need a P45 for your next employer or HMRC. Chase HR if it is delayed.
Request a written reference if your contract provides for one.
Store contracts, payslips, redundancy letter and all correspondence securely.
If payment is late or missing
Raise a formal grievance then consider Employment Tribunal claims for unlawful deduction from wages within time limits.
If the employer enters insolvency, the Redundancy Payments Service may handle certain debts — see GOV.UK.
Keep evidence for Universal Credit reporting of lump sums.