Redundancy Pay for Part-Time Workers

If you work part-time and are facing redundancy, you may be wondering whether your reduced hours affect your entitlement to redundancy pay. The clear answer under UK law is that part-time workers have exactly the same redundancy rights as full-time employees. You cannot be treated less favourably because of your working pattern, and your redundancy pay is calculated using the same statutory formula that applies to everyone.

This guide explains how redundancy pay works for part-time workers, addresses the most common misconceptions, and sets out what you should do if you believe your employer is not treating you fairly.

Equal Rights Under UK Law

The Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000 make it unlawful for employers to treat part-time workers less favourably than comparable full-time workers unless there is an objective justification. This covers all terms and conditions of employment, including redundancy pay, notice periods, consultation rights and access to enhanced redundancy schemes.

The regulations work alongside the Employment Rights Act 1996, which sets out the statutory right to redundancy pay. To qualify for statutory redundancy pay, you must:

• Be an employee (not a worker or contractor)
• Have at least 2 years of continuous service with the employer
• Be dismissed by reason of redundancy

These qualifying conditions are identical for part-time and full-time staff. There is no minimum hours threshold. Whether you work 5 hours a week or 40, if you meet the criteria above, you are entitled to statutory redundancy pay.

How Redundancy Pay Is Calculated for Part-Time Workers

The statutory redundancy pay formula works exactly the same way for part-time employees as it does for full-time employees. The calculation uses three factors:

1. Your actual gross weekly pay (capped at £719 per week in the 2025/26 tax year, or £749 in Northern Ireland)
2. Your length of continuous service (up to a maximum of 20 years)
3. Your age during each year of service, which determines the multiplier: half a week's pay for each year you were under 22, one week's pay for each year you were 22 to 40, and one and a half weeks' pay for each year you were 41 or over

The key point is that the formula uses your actual weekly pay, not a theoretical full-time equivalent. If you work 20 hours per week and earn £350 gross, your redundancy pay is calculated on £350. There is no additional step to adjust or reduce the figure because you are part-time.

Worked Example

James works 16 hours per week as a warehouse operative and earns £192 per week gross. He is 35 years old and has been employed continuously for 8 years. His statutory redundancy pay is calculated as follows:

• 8 years of service, all between age 27 and 35 (within the 22-40 age band)
• Multiplier: 1 week's pay per year = 8 weeks' pay
• Weekly pay: £192
• Total: 8 × £192 = £1,536

A full-time colleague of the same age with the same length of service earning £500 per week would receive 8 × £500 = £4,000. The difference arises naturally from the different weekly pay rates, not from any pro-rata reduction.

Pro-Rata Is Not Needed -- Use Your Actual Pay

One of the most persistent misunderstandings about part-time redundancy pay is the idea that it should be "pro-rated" from a full-time equivalent salary. This is wrong. The statutory formula already accounts for your working pattern because it uses your actual weekly earnings.

If an employer calculates your redundancy pay using a full-time salary and then reduces it in proportion to your hours, they are effectively reducing your entitlement below the statutory minimum. For example, if a full-time equivalent earns £500 per week and receives £4,000 in redundancy pay, and the employer then pro-rates this to 50% because you work half the hours, you would receive £2,000. But if your actual weekly pay is £250, your statutory entitlement is 8 × £250 = £2,000. In this case the numbers happen to match, but the method is wrong and could produce incorrect results in other scenarios, particularly where enhanced redundancy schemes are involved.

The correct approach is always to start with actual weekly pay. If your employer's enhanced redundancy scheme uses a multiplier (for example, 3 weeks' pay per year of service), that multiplier should be applied to your real weekly earnings, not to a pro-rated figure.

Common Myths About Part-Time Redundancy

Myth 1: "Part-timers get less redundancy pay per year of service"

False. The multiplier (half a week, one week or one and a half weeks per year of service) is the same for everyone. The only difference is the weekly pay figure, which reflects your actual earnings.

Myth 2: "You need to work a minimum number of hours to qualify"

False. There is no minimum hours requirement for statutory redundancy pay. The only requirements are employee status, 2 years of continuous service, and a genuine redundancy situation. This has been the case since 1995 when the previous 16-hour threshold was abolished.

Myth 3: "Part-time workers are more likely to be selected for redundancy"

Selecting employees for redundancy because they work part-time is unlawful. Redundancy selection criteria must be objective and applied fairly. Common lawful criteria include length of service, skills and qualifications, attendance records (excluding pregnancy or disability-related absences), and performance ratings. Working pattern is not a legitimate criterion.

Myth 4: "Enhanced redundancy schemes don't apply to part-timers"

If your employer offers an enhanced redundancy package, part-time workers must be included on the same terms. The employer cannot limit enhanced payments to full-time staff only. The enhanced formula should be applied to your actual weekly pay in the same way the statutory formula is.

What If You Changed Hours During Your Employment?

If you started full-time and later reduced your hours, or vice versa, your redundancy pay is calculated using your weekly pay at the date of redundancy (or at the calculation date if you are given notice). This is the standard position under the Employment Rights Act.

This can work for or against you. If you moved from full-time to part-time, your redundancy pay is based on your lower part-time earnings, even though some of your years of service were worked at full-time hours. Conversely, if you moved from part-time to full-time, you benefit from the higher weekly pay figure being applied across all your qualifying years.

There is currently no legal requirement for employers to calculate redundancy pay on a blended or weighted basis to reflect changes in working hours over time. However, some employers choose to do this as a matter of policy or as part of a negotiated settlement.

Your Other Rights as a Part-Time Worker Facing Redundancy

Beyond the redundancy payment itself, part-time workers have the same rights as full-time colleagues throughout the redundancy process:

• Notice period: You are entitled to the same statutory or contractual notice period based on your length of service.
• Consultation: Your employer must consult with you individually and, where collective redundancy rules apply, follow the collective consultation process.
• Time off to look for work: If you have 2 or more years of service, you have a statutory right to reasonable paid time off during your notice period to look for new work or arrange training.
• Suitable alternative employment: Your employer must consider you for any suitable alternative roles within the organisation on the same basis as full-time employees.
• Right to a written statement: You can request a written statement explaining how your redundancy pay has been calculated.

What to Do If You Think You Are Being Treated Unfairly

If you believe your employer is calculating your redundancy pay incorrectly, or is discriminating against you because of your part-time status, you should:

1. Raise a formal grievance with your employer in writing, citing the Part-Time Workers Regulations.
2. Request a written statement of the reasons for any difference in treatment compared to a comparable full-time worker.
3. Contact ACAS (Advisory, Conciliation and Arbitration Service) for free, impartial advice on 0300 123 1100.
4. If the matter is not resolved, you can bring a claim to an employment tribunal. You must normally start early conciliation through ACAS before issuing a tribunal claim.