Redundancy Pay for Part‑Time Workers

Redundancy pay is a legal entitlement for eligible employees dismissed because their role is no longer required by the employer. Many part‑time workers assume they are treated differently under redundancy rules. In England and Wales, however, part‑time status does not exclude a worker from statutory redundancy pay. The key issues are whether the individual qualifies, how their pay is calculated, and what practical steps they can take if they believe they have been treated unfairly. This article explains these points clearly, with examples and legal context, suitable for employees, employers, and solicitors alike.

Who Qualifies for Redundancy Pay

To qualify for statutory redundancy pay, a worker must:

• Be an employee under a contract of employment.
• Have been dismissed by reason of redundancy (including lay‑off or short‑time working under certain conditions).
• Have at least two years' continuous service with the employer at the redundancy date.

Part‑time employees meet these criteria in the same way as full‑time employees. Their part‑time status does not prevent statutory redundancy pay if these requirements are met.

How Redundancy Pay Is Calculated for Part‑Time Workers

Statutory redundancy pay for part‑time workers is calculated using the same three‑part formula applied to full‑time employees:

1. Years of continuous service (up to a 20‑year cap). 
2. Age at the relevant date (used to allocate 0.5, 1 or 1.5 weeks' pay per year). 
3. Weekly pay (based on actual earnings, pro‑rated for part‑time hours).

Weekly Pay

For part‑time workers, weekly pay is based on the average earnings per week over the 12 weeks before the redundancy notice was given. If hours or pay varied during that period, the average is used.

For example, a part‑time hairdresser working 20 hours per week at £10 per hour would have a weekly pay figure of £200 (£10 × 20). This weekly pay figure is then used in the statutory redundancy calculation.

Age and Service

Statutory redundancy pay uses age bands to determine the number of weeks' pay allocated per year of service:

• Under 22: 0.5 week's pay per year.
• 22–40: 1 week's pay per year.
• 41 and over: 1.5 weeks' pay per year.

Only completed years of service count and service is capped at 20 years for statutory purposes.

Pro‑Rata Example

A part‑time employee aged 30, with 5 years' continuous service at a weekly pay of £200, would receive:

• 5 years × 1 week's pay × £200 = £1,000 statutory redundancy pay.

This example shows that part‑time workers are treated the same as full‑time workers; the only difference is the weekly pay figure reflects part‑time earnings.

Part‑Time Hours Changes Before Redundancy

A common issue arises when an employee's hours change shortly before redundancy. Statutory rules use the 12‑week reference period immediately before the redundancy notice to calculate average weekly pay.

For example, an employee who reduced their hours from full‑time to part‑time three months before redundancy will have their redundancy pay based on the average of that 12‑week period. This may lead to a lower redundancy payment than if full‑time earnings were used.

In practice, if a change in hours is very recent and temporary, employers and employees may review whether that period should be averaged or whether previous contractual pay terms apply, especially where there is a contractual redundancy scheme. The statutory baseline does, however, use the 12‑week average.

Employment Contract and Enhanced Redundancy Terms

Some employers provide contractual or enhanced redundancy pay that is more generous than statutory minimums. These schemes may:

• Use a longer reference period for average pay.
• Provide redundancy pay even if the employee has less than two years' service.
• Use different multipliers or pay calculations.

Part‑time workers covered by such contractual terms must be treated the same as full‑time workers in respect of those contractual provisions unless there is a genuine, lawful reason to differentiate.

Practical Steps if You Are a Part‑Time Worker Facing Redundancy

Check Your Contract

Review your employment contract and any staff handbook for redundancy provisions that enhance the statutory minimum or define how redundancy pay should be calculated for part‑time work.

Request a Written Calculation

Under UK law, employers must provide a written statement detailing how redundancy pay was calculated, including the weekly pay figure used.

Seek Advice

If you believe your redundancy pay has been calculated incorrectly, you may:

• Contact your employer to raise the issue informally.
• Seek advice from Acas, a trade union, or a legal adviser.
• Consider presenting a claim to an employment tribunal if the dispute cannot be resolved informally.

Time limits for tribunal claims are strict: typically six months minus one day from the employment end date for statutory redundancy pay disputes.

Common Questions About Part‑Time Redundancy Pay

Do part‑time workers get redundancy pay?
Yes. Part‑time employees qualify for statutory redundancy pay if they meet the service and dismissal criteria, in the same way as full‑time workers.

Is redundancy pay based on current part‑time earnings?
Yes. The weekly pay used in the calculation reflects average actual earnings during the reference period, usually based on part‑time hours.

Can previous full‑time earnings be used?
Statutory rules use the 12‑week average before notice is given. If part‑time hours started within that period, the average will reflect those hours. For contractual schemes, however, different rules may apply.

Key Takeaways

Part‑time workers in England and Wales are entitled to statutory redundancy pay if they meet the qualifying criteria of employee status and two or more years of continuous service. Their redundancy pay is calculated using the same statutory formula as for full‑time workers, with weekly pay based on actual pro‑rated earnings averaged over the 12 weeks before notice. Employers must provide written explanations of calculations, and employees should check their contracts for any enhanced redundancy provisions. Disputes over incorrect calculations can be taken to an employment tribunal within strict time limits.

James William Steven Parker

James is the founder of UKLegalGuides.com and a former agent at the Ministry of Justice (UK). With a background in processing legal claims, he launched this platform to make the laws of England and Wales accessible to everyone.