Redundancy pay in Scotland


Scotland’s redundancy pay rules follow the same law as the rest of the UK. There are statutory minimum redundancy rights, including a right to statutory redundancy pay. In order to qualify for the statutory minimum redundancy pay, the employee being dismissed must have been in continuous employment for two years or more. They must also be over 18 years old, and have been working as an employee under a contract of employment.

In Scotland, redundancy pay is subject to a statutory minimum requirement. This is to ensure that the employee being made redundant is fairly compensated. The statutory redundancy entitlement is calculated as follows:

  • Half a week’s pay for each full year of service where age during the year is less than 22
  • One week’s pay for each year of service where age during the year is 22 or above, but less than 41
  • One and a half weeks’ pay for each year of service where age is 41 and over

It may be possible for an employee to negotiate a more generous redundancy payment than the statutory minimum redundancy entitlement with their employer, or the contract of employment may specify the payment owing.

If an employer has offered an employee facing redundancy another job that is ‘suitable alternative employment’ and the job is refused, the employee will not have any right to claim redundancy pay.

If you are facing redundancy and are unsure of your entitlement to redundancy pay, or any of your other employee rights, Scotland has many expert employment solicitors who will be able to answer your questions. Whether you are an employer or employee, redundancy law is important, and you should get legal advice.

For an employee, redundancy can have significant career and financial consequences; for an employer, redundancy managed poorly can have negative consequences on your workforce and lead to legal action.

If you would like help finding recommended employment solicitors in Scotland, Contact Law can put you in touch with a firm we work with free of charge. So, if you have any questions please call us on 0800 1777 162 or complete the web-form above.

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