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NHS Agenda for Change Notes
- Only reckonable service counts towards redundancy pay
- Some breaks in service may not count
- Enhanced contractual terms may apply in your trust
- Maximum statutory weekly pay is currently capped at £700
Frequently Asked Questions
NHS employees with at least 2 years of continuous service are entitled to statutory redundancy pay. This applies to employees on Agenda for Change terms and conditions. Bank staff and those on fixed-term contracts may have different entitlements.
Redundancy pay is based on your age, length of service, and weekly pay (capped at £700 per week). The calculation is:
- Under 22: 0.5 week's pay for each full year of service
- 22 to 40: 1 week's pay for each full year of service
- 41 and over: 1.5 week's pay for each full year of service
Maximum payment is capped at 20 years of service.
NHS organizations may offer enhanced redundancy packages beyond statutory minimums. Under Agenda for Change, only "reckonable service" counts - this typically includes:
- Continuous NHS service
- Service with other NHS bodies
- Some local authority health service
Breaks in service, secondments, and career breaks may affect your calculation. Always check with your HR department for trust-specific enhancements.
If you've taken partial retirement or are drawing your NHS pension while still working, this may affect your redundancy entitlement. In some cases, if you're already receiving pension benefits, redundancy payments may be reduced or affected. Consult with NHS Pensions and your HR department about your specific situation.
For personalized advice and support regarding redundancy:
- Your Union: UNISON (0800 0857 857), RCN, GMB, or Unite
- NHS HR Department: Your local trust's HR team
- NHSBSA: www.nhsbsa.nhs.uk
- Citizens Advice: For general employment rights guidance
- ACAS: Free impartial advice on employment issues
The first £30,000 of statutory redundancy pay is usually tax-free. Any amount above £30,000 is subject to income tax and National Insurance contributions. However, tax rules can be complex, so consult with HMRC or a tax advisor for your specific circumstances.