What Is the Limitation Period for Redundancy Pay Disputes?

Redundancy pay disputes arise where an employee believes they have not received the correct redundancy payment when their employment ends due to redundancy. This may involve statutory redundancy pay under UK employment law or enhanced contractual redundancy payments set out in an employment contract or workplace policy.

In England and Wales, strict limitation periods apply to redundancy pay disputes. These deadlines are enforced by employment tribunals and civil courts, and missing them usually prevents a claim from being pursued.

Understanding which limitation period applies depends on whether the claim relates to statutory redundancy pay or contractual redundancy pay.

Types of Redundancy Pay Claims

Redundancy-related claims generally fall into two categories:

1. Statutory redundancy pay

This is the minimum payment required under the Employment Rights Act 1996. Eligibility depends on length of service, age, and weekly pay (subject to statutory caps).

2. Contractual (enhanced) redundancy pay

Some employers offer enhanced redundancy payments through:

• Employment contracts
• Staff handbooks
• Redundancy policies
• Collective agreements

Disputes may arise where the employer fails to honour these terms.

Limitation Period for Statutory Redundancy Pay Claims

Employment tribunal time limit

The limitation period for statutory redundancy pay claims is:

6 months minus 1 day from the date employment ends.

This applies to claims brought in the employment tribunal under the Employment Rights Act 1996.

Key point

The “date of dismissal” for redundancy is usually the effective date of termination of employment.

Extension of Time for Statutory Claims

Tribunals may extend the limitation period in limited circumstances where:

• It was not reasonably practicable to present the claim in time
• The delay was caused by exceptional circumstances

However, these extensions are interpreted strictly, and late redundancy claims are rarely accepted.

ACAS Early Conciliation and Time Limits

Before bringing a tribunal claim for redundancy pay, the claimant must notify ACAS and complete Early Conciliation.

Effect on limitation:

• The time limit is paused when ACAS is notified
• It remains paused during conciliation
• It resumes when the ACAS certificate is issued

If time would otherwise expire during conciliation, the claimant usually has at least 1 month from the certificate date to submit the claim.

Limitation Period for Contractual Redundancy Pay Claims

Where the dispute relates to enhanced contractual redundancy pay, the claim may be brought in the civil courts rather than the tribunal.

County Court limitation period:

6 years from the date the payment became due (Limitation Act 1980).

This applies to:

• Contractual redundancy schemes
• Employer policies with binding redundancy terms
• Written agreements promising enhanced payments

Tribunal vs County Court Claims

The appropriate forum depends on the nature of the claim:

Type of claim	Forum	Time limit
Statutory redundancy pay	Employment tribunal	6 months minus 1 day
Contractual redundancy pay	County Court	6 years

Some claims may overlap, particularly where statutory and contractual redundancy payments are disputed together.

When Does the Limitation Period Start?

Statutory redundancy pay

The clock starts on:

• The effective date of termination of employment

Contractual redundancy pay

The clock starts when:

• The payment becomes contractually due (usually the termination date or payment date specified in the contract)

Common Redundancy Pay Disputes

1. Incorrect calculation of statutory redundancy pay

Disputes over length of service, weekly pay caps, or age bands.

2. Failure to pay redundancy entitlement

Employer refuses or delays payment.

3. Disputes over enhanced redundancy schemes

Employer fails to apply contractual redundancy terms correctly.

4. Disputes over eligibility

Employer claims employee does not qualify due to employment status or service length.

Ongoing Employment and Redundancy Claims

Redundancy pay claims generally arise after employment ends. However:

• The claim can be prepared while still employed
• The limitation period does not begin until termination
• ACAS Early Conciliation can be started before dismissal in some circumstances

What Happens if the Time Limit Is Missed?

Employment tribunal claims

If a statutory redundancy pay claim is late:

• The tribunal will usually reject it
• Extensions are rare and strictly applied

County court claims

If a contractual claim is out of time:

• It becomes statute-barred under the Limitation Act 1980
• The employer can rely on limitation as a complete defence

Interaction with Other Employment Claims

Redundancy disputes may overlap with:

• Unfair dismissal claims
• Unlawful deduction from wages claims
• Breach of contract claims

Each type of claim has its own limitation period, which may affect how and where proceedings are issued.

Practical Steps for Employees

To avoid missing deadlines:

• Confirm the effective date of termination
• Identify whether redundancy pay is statutory or contractual
• Calculate the relevant limitation period early
• Notify ACAS before the deadline expires (tribunal claims)
• Keep written records of redundancy calculations and correspondence

Key Takeaways

The limitation period for redundancy pay disputes in England and Wales depends on the type of claim. Statutory redundancy pay claims must usually be brought in the employment tribunal within 6 months minus 1 day from termination, while contractual redundancy pay claims can be brought in the County Court within 6 years from when payment is due. ACAS Early Conciliation pauses tribunal time limits but does not apply to civil court claims. Missing these deadlines usually prevents recovery of redundancy payments.