Redundancy Payment Claim Time Limit Rules

A statutory redundancy payment is a legal entitlement under UK employment law for employees who are dismissed due to redundancy, provided they meet qualifying criteria such as continuous service and employment status requirements.

Where an employer fails to pay redundancy pay, or disputes arise about entitlement or amount, employees may bring a claim to an Employment Tribunal or apply directly to the Insolvency Service in certain insolvency situations.

However, redundancy payment claims are subject to strict time limits. Missing these deadlines can result in losing the right to recover payment entirely, even where redundancy entitlement is clear.

This article explains the legal time limits for redundancy payment claims, how they are calculated, what happens in insolvency cases, and how ACAS Early Conciliation affects deadlines.

What Is a Redundancy Payment Claim?

A redundancy payment claim typically arises when:

• An employer refuses to pay statutory redundancy pay
• There is a dispute about the amount owed
• Employment has ended due to redundancy but payment has not been made
• The employer is insolvent and payment is delayed or missing

Statutory redundancy pay is governed primarily by the Employment Rights Act 1996.

Time Limit for Redundancy Payment Claims

The standard time limit for bringing a redundancy payment claim to an Employment Tribunal is:

Six months less one day from the “relevant date”.

This is significantly longer than most other Employment Tribunal claims.

What Is the “Relevant Date”?

The relevant date depends on the circumstances of termination.

In most redundancy cases, it is:

• The effective date of termination (EDT), or
• The date employment ended due to redundancy

If there is a dispute or delay in payment, the relevant date may still be linked to termination, not the date the payment should have been made.

Why the Time Limit Is Longer

The six-month limitation period reflects the nature of redundancy payments:

• Claims often arise after employment has ended
• Employees may need time to understand entitlement
• Employers may take time to calculate or confirm redundancy pay
• Insolvency processes can delay payment

This longer period provides additional protection compared to other employment claims.

ACAS Early Conciliation and Time Limits

Before bringing a redundancy payment claim in the Employment Tribunal, most individuals must notify ACAS for Early Conciliation.

This process:

• Pauses the limitation period
• Extends the deadline by the conciliation period
• Resumes once ACAS issues a certificate

Practical impact

If ACAS Early Conciliation lasts 30 days, the limitation period is extended by 30 days.

This is particularly relevant in redundancy disputes where negotiations or employer responses may take time.

Redundancy Claims Against Insolvent Employers

If an employer is insolvent, redundancy claims are usually handled by the Redundancy Payments Service (RPS), part of the Insolvency Service.

Employees may claim:

• Statutory redundancy pay
• Unpaid wages
• Notice pay
• Holiday pay

Time limits in insolvency cases

The six-month tribunal time limit may still apply, but in practice:

• Claims are often made directly to the Insolvency Service
• The process is administrative rather than tribunal-based
• Separate statutory deadlines may apply depending on insolvency proceedings

Timely application remains important even where insolvency routes are used.

What Happens If You Miss the Time Limit?

If a redundancy payment claim is submitted late to the Employment Tribunal:

• The claim will usually be rejected as out of time
• The tribunal has very limited discretion to extend time

Unlike discrimination claims, redundancy payment claims do not benefit from a broad “just and equitable” extension test.

Extensions are generally only possible where strict statutory conditions are met, such as procedural errors or exceptional circumstances.

Common Time Limit Issues in Redundancy Claims

1. Confusion about the relevant date

Employees may assume the clock starts when redundancy is confirmed, but it usually starts from termination.

2. Delay due to employer negotiations

Ongoing discussions with employers do not stop the limitation period.

3. Insolvency uncertainty

Employees often delay claims while waiting for insolvency confirmation, risking time expiry.

4. Misunderstanding entitlement

Some employees delay claiming while disputing whether redundancy applies at all, which can reduce available time.

Tribunal vs Civil Court Claims

Redundancy payment disputes are generally handled exclusively by Employment Tribunals rather than civil courts.

Key features include:

• Statutory jurisdiction under the Employment Rights Act 1996
• Fixed six-month limitation period
• No alternative six-year civil court route for statutory redundancy pay

This makes the tribunal time limit particularly important.

Calculation of the Deadline

To calculate the limitation period:

1. Identify the relevant date (usually termination date)
2. Add six calendar months
3. Subtract one day
4. Adjust for ACAS Early Conciliation pause period
5. Confirm submission via Employment Tribunal system

Errors in calculating the relevant date are a common cause of rejected claims.

Why Time Limits Are Strict

The limitation rules exist to:

• Ensure redundancy disputes are resolved promptly
• Provide certainty for employers and insolvency administrators
• Maintain consistency in statutory payment schemes
• Prevent delayed financial claims long after employment ends

Employment Tribunals apply these rules strictly due to their statutory nature.

Practical Steps When Considering a Claim

Typical steps include:

• Confirming the reason for dismissal (redundancy status)
• Identifying the effective date of termination
• Checking redundancy entitlement under statutory rules
• Calculating the six-month limitation period
• Starting ACAS Early Conciliation promptly
• Gathering employment contract and payslip evidence
• Reviewing employer insolvency status if relevant

Early action is important due to the fixed limitation period and limited extension options.

Common Questions from our Readers

What is the time limit for redundancy payment claims?

Six months less one day from the relevant date, usually the date employment ended.

Can I extend the deadline?

Only in very limited circumstances. The tribunal does not have broad discretion to extend time.

Does ACAS Early Conciliation extend the time limit?

Yes, it pauses the limitation period and extends the deadline by the conciliation period.

What if my employer is insolvent?

Claims are usually made to the Insolvency Service, but time limits still matter.

Can I claim redundancy pay in the civil courts?

No. Statutory redundancy pay claims are generally brought only in Employment Tribunals or via the Insolvency Service.

Key Takeaways

Redundancy payment claims in Employment Tribunals must usually be brought within six months less one day from the relevant date, typically the date employment ends. This longer limitation period reflects the statutory nature of redundancy pay but remains strictly enforced.

ACAS Early Conciliation pauses the time limit, but employer negotiations or misunderstandings do not. Tribunal discretion to extend time is limited, making prompt action essential.

Understanding the correct termination date and acting within the six-month period is critical to preserving the right to statutory redundancy pay.