Can you get redundancy at 65

They may consult with you, or a representative such as a trade union, before making a final decision. Your employer must follow a fair process if they make you redundant. Your employer has a duty to consider whether there are any alternative suitable jobs for you within the business. You may be offered another suitable job if one is available. Citizens Advice can also give information and advice. If you were chosen for redundancy because of any of the following reasons it could be considered an unfair dismissal:.

For a full list of reasons when redundancy would be considered unfair dismissal, see the GOV. UK website. If you feel you were selected unfairly you can appeal. Unfair dismissal claims could go to an Employment Tribunal.

Your employer should give you notice if you are to be made redundant. Your employer may choose to give you a longer notice period than the legal minimum. Your employment contract should have a section about notice periods. You will be paid throughout your notice period and your final pay should include other payments such as any outstanding holiday pay. Only a payment for a genuine redundancy is eligible for the tax-free limit.

A genuine redundancy occurs when the employer has made a decision that the job no longer exists and terminates the employee's employment. Dismissal is the involuntary termination of an employee. It's the employer's decision that the employment will end, rather than the employee's decision to leave.

Provided that it's ultimately the employer's decision to cease employment, a dismissal can still occur when the employer offers a redundancy package to an employee to either:. A redundancy is still considered genuine if the employer seeks expressions of interest from their employees before they decide which employee to dismiss. Sometimes an employer places an employee in a position where there is little choice but to resign — for example, when the employer offers their employee any of the following:.

An early retirement scheme is a plan that offers employees incentives to retire early or resign when the employer is rationalising or reorganising their business operations. The scheme must meet certain conditions and be approved by us. We will provide approval to the employer as a class ruling. You can't start an early retirement scheme until you have the class ruling. Show download pdf controls.

Show print controls. Redundancy and early retirement Genuine redundancy and early retirement scheme payments are tax free up to a limit based on the employee's years of service.

Any amount over the tax-free limit is part of the employee's ETP. In Odar v Baxter Deutschland the European Court of Justice held that it was not discriminatory on the grounds of age to taper and reduce redundancy compensation payments for employees aged over 54, by taking into account the earliest date from which they could receive a state pension.

The ECJ accepted that the legitimate policy aim was to protect younger workers and to apply limited resources to them. Older employees could instead take advantage of the state pension. However, the ECJ concluded that formula was indirect disability discrimination and could not be justified for that reason.

The Odar case emphasises the perils that employers face when trying to apply such age-related criteria. Conclusion : Few employers will be brave enough to admit to relying on age as a criteria for selecting for redundancy and if they do so, it will be under the radar. On the other hand some older employees may be more willing to volunteer for redundancy, especially if they think they are going to get an enhanced redundancy payment.

James Carmody. Reculver Solicitors advise on redundancy, age discrimination, unfair dismissal and other employment matters and are based in London WC1. Reculver has developed a Redundancy and unfair dismissal Calculator tool which the statutory redundancy payment; the statutory notice period, payment in lieu of notice and a possible unfair dismissal award if out of work for six months.

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