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Free tools › Redundancy pay by country

Redundancy pay: United Kingdom vs United States

Statutory redundancy pay in the UK and the US, side by side, with the primary source for every figure.

How does redundancy pay compare between UK and US?

United Kingdom: 0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530. United States: None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.

United Kingdom vs United States, side by side

United KingdomUnited States
The rule0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530.None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.
At 1 yearNil (under the 2-year qualifying line)No statutory scale
At 5 years5 weeks' pay (aged 22-40 throughout, capped at £751/week)No statutory scale
At 10 years10 weeks' pay (aged 22-40 throughout, capped at £751/week)No statutory scale
Key numbersFormula: 0.5 / 1 / 1.5 weeks per year by age band; Weekly pay cap: £751 (2026-27); Maximum: £22,530Federal statutory severance: None; WARN liability for missed notice: Up to 60 days' back pay and benefits

United Kingdom

Statutory redundancy pay uses three age bands: half a week per year under 22, one week per year from 22 to 40, and one and a half weeks per year at 41 plus. Service counts up to 20 years, weekly pay is capped at £751 for 2026-27, and the ceiling works out at £22,530. Two years' service is the qualifying line, unchanged by the Employment Rights Act 2025.

  • Formula0.5 / 1 / 1.5 weeks per year by age band
  • Weekly pay cap£751 (2026-27)
  • Maximum£22,530
  • Qualifying service2 years
Length of serviceEntitlement
Years worked under age 220.5 week's pay per year
Years worked aged 22 to 401 week's pay per year
Years worked aged 41 plus1.5 weeks' pay per year
  • ERA 2025 doubled the collective-consultation protective award to 180 days' pay, so process failures now cost far more than the redundancy pay itself.
  • Redundancy pay is tax-free up to £30,000.

Source: GOV.UK (Caps from 6 Apr 2026). Checked July 2026.

United States

The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms. Severance in the US comes from employment agreements, severance plans (enforceable under ERISA once promised) or collective agreements. WARN's teeth are back pay for missing notice, up to 60 days, not a severance formula.

  • Federal statutory severanceNone
  • WARN liability for missed noticeUp to 60 days' back pay and benefits
  • 'Two weeks per year of service' is common US practice, but it is policy, not law.
  • New Jersey's mini-WARN is the notable state exception, mandating severance for large layoffs.

Source: US Department of Labor (FLSA position, current). Checked July 2026.

Hiring in both markets?

Put a full number on each side with the true-cost calculators: True cost of an employee (UK) and True cost of an employee (US). The complete six-market picture is on the Redundancy pay by country page.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
United KingdomGOV.UKCaps from 6 Apr 2026Checked July 2026
United StatesUS Department of LaborFLSA position, currentChecked July 2026
Where Compono fits

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work, not just what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works

Common questions

What is the rule on redundancy pay in the UK?

0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530. Statutory redundancy pay uses three age bands: half a week per year under 22, one week per year from 22 to 40, and one and a half weeks per year at 41 plus.

What is the rule on redundancy pay in the US?

None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment. The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms.

Where can I check the source figures?

The sources section below links the the UK and the US government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with GOV.UK, the US Department of Labor or your own adviser. Last reviewed July 2026.