Send a written challenge to payroll or HR today asking for a corrected redundancy calculation and a clear breakdown of how the figures were reached. If nothing is done, the underpayment can sit unresolved until the deadline to start a claim passes and the employer may treat the figure as accepted. Keep the request factual, attach the key dates and pay details, and set a short deadline for a reply. If the employer still will not correct it, move to the official early conciliation route so the clock does not run out.
What the problem is
A redundancy payment can look “about right” at first glance, then turn out to be wrong once the paperwork arrives or the final payslip lands. In UK workplaces this often shows up at the point the redundancy letter is issued, when a settlement figure is offered, or when the final pay is processed and the redundancy element is bundled with holiday pay and notice pay. It affects employees and workers who have been told their role is ending, including those with variable hours, recent pay changes, or a period of sickness or family leave that complicates average pay.
The problem usually becomes clear after a partial response from HR, such as “that’s what the system calculated”, or after a deadline is mentioned for signing a document or accepting the payment. Sometimes it appears after the money arrives, when the amount is lower than expected and the employer says it is “statutory only” without showing the working. Where there has been a restructure, TUPE transfer history, or a change of payroll provider, the wrong start date or pay reference can be used without anyone checking it against the contract and payslips.
Why this happens
Most wrong redundancy pay cases come from a small set of repeat causes: the wrong start date is used, the wrong week’s pay figure is used, or the employer mixes up statutory redundancy pay with an enhanced scheme. Variable pay is a frequent trigger because payroll systems may default to a basic rate, ignore regular overtime, or use a reference period that does not match how pay is normally calculated. Another common cause is treating a break in service as ending continuity when, in practice, the employment relationship carried on or the break should not have been counted that way.
Employers also have incentives that shape behaviour: redundancy projects are time-pressured, managers want clean exits, and payroll teams are processing multiple leavers at once. A typical organisational response pattern is that the first reply is a generic explanation that repeats the total figure but does not provide the underlying dates, weekly pay basis, or the cap/limits used.
Errors can also happen when notice pay is confused with redundancy pay, or when holiday pay is used to “top up” the final payment in a way that makes it hard to see what has actually been paid for redundancy. Where a settlement agreement is in play, the employer may present a single lump sum and describe it as “redundancy”, even though it includes other elements, which makes it harder to spot a shortfall until later.
Your UK position
The practical leverage comes from asking for the calculation in writing and checking it against documents the employer already holds: contract, payslips, start date records, and the redundancy letter. Employers are more likely to correct a figure when the challenge is framed as a request to reconcile payroll records rather than an accusation of wrongdoing. A clear, dated request also helps show that the issue was raised promptly, which matters if the dispute later needs formal steps.
Where the employer is relying on “statutory only”, the position is still that the amount must be calculated correctly and paid on time. If there is an enhanced redundancy scheme, the leverage is to ask for the scheme rules or policy wording and to point to any written promise in the redundancy pack, intranet policy, or offer letter. If the employer is pushing for a quick signature, it is usually safer to separate the issues: accept that employment is ending (if that is settled) while keeping the payment calculation explicitly “not agreed”.
It often works to ask for a breakdown that shows: the date employment started, the date it ends, the weekly pay figure used, and how the final redundancy sum was derived. If the employer refuses to provide a breakdown, that refusal itself becomes useful evidence that reasonable clarification was requested and not provided.
Official basis in UK
The single official route that most people end up using when redundancy pay is wrong is ACAS Early Conciliation, which is the gateway step before an employment tribunal claim about unpaid statutory redundancy pay or related pay issues. In practice, early conciliation is used to notify the dispute, pause the rush toward a deadline, and give the employer a structured chance to correct the calculation or agree a settlement without a hearing. The process is designed for straightforward pay disputes as well as more complex cases where the disagreement is about dates, weekly pay, or what counts as normal pay.
Use the official ACAS early conciliation service via GOV.UK guidance, prepare the employer’s legal name, workplace address, and the key dates, and keep the summary short and factual. Employers often respond once ACAS is involved because it signals that the dispute is being handled formally and that delay is no longer risk-free.
Evidence that matters
Redundancy pay disputes are usually decided by paperwork rather than long narratives, so the aim is to collect the minimum set that proves dates and pay. Start with the redundancy letter (or dismissal letter), the contract or written statement, and the last 3–6 months of payslips (longer if pay varies seasonally). Add any documents that show changes to hours, pay rises, role changes, or periods of unpaid leave, because these are the points where payroll calculations often go wrong.
Keep communications in writing where possible. If a call happens, follow up with an email that confirms what was said and asks the employer to confirm the calculation basis. Screenshots from HR portals can help, but they should be backed up by PDFs or downloaded copies in case access is removed after employment ends.
What not to do: do not sign a document that states the redundancy payment is “in full and final settlement” until the calculation has been checked and the breakdown is understood.
Quick checklist
- Redundancy/dismissal letter showing the termination date
- Contract or written statement showing start date and pay terms
- Payslips showing normal pay, overtime, and any allowances
- Any written enhanced redundancy policy or offer wording
- Emails or letters where the employer states the figure or basis
Common mistakes
Three mistakes keep causing avoidable delays: relying on verbal assurances without getting the breakdown in writing, challenging the total figure without stating the specific date/pay point that is wrong, and waiting until after access to HR systems is removed to download payslips and policy documents.
Steps to take now
Ask for breakdown
Send a short email to HR/payroll requesting a corrected calculation or a written breakdown of the existing one. Include the employment start date as shown on the contract, the termination date from the redundancy letter, and the weekly pay figure that appears on payslips. Ask them to confirm whether the payment is statutory only or includes any enhanced element, and to separate redundancy pay from notice pay and holiday pay in the response.
Set a deadline
Give a clear deadline for a reply, such as seven calendar days, and say that if there is no written breakdown by then the matter will be raised formally. Keep the tone neutral and focus on reconciliation of records. If the employer replies with a total figure only, respond once more asking for the working, not a restatement.
Check pay elements
Compare the employer’s weekly pay figure to what is actually paid in a normal week. If pay varies, look for patterns such as regular overtime, shift premiums, or allowances that appear most months. If the employer has used basic pay only, ask them to explain why those regular elements were excluded. If the employer has used the wrong start date, attach the contract page or earlier payslip that shows the correct date.
Use official process
If the employer does not correct the figure or provide a breakdown by the deadline, move to ACAS Early Conciliation using the official online process and prepare the information before starting it. This is also the point to check whether there are other pay issues tied up in the exit, because redundancy disputes often sit alongside missing final wages; where that is happening, the separate issue of EMPLOYER UNPAID WAGES can affect how the claim is framed and what evidence is needed.
To start early conciliation, find the official entry point through GOV.UK and have these details ready: the employer’s legal name (as on payslips or the contract), the workplace address, the termination date, the redundancy amount paid or offered, and the amount believed to be due. Do not paste large bundles of documents into the form; keep documents ready to share if asked later.
Prepare details
- Employer legal name and address
- Employment start and end dates
- Weekly pay figure and payslip support
- Redundancy figure paid/offered and date paid
- Any enhanced scheme wording relied on
The normal response timeframe after starting early conciliation is that an ACAS conciliator makes contact within a short period and then works with both sides during the conciliation window, but employers often reply faster once they receive the ACAS notification. If there is no response from the employer during conciliation, or the employer refuses to correct an obvious calculation error, the next escalation is to request the early conciliation certificate and use it to start a tribunal claim within the relevant time limit. The issue is usually resolved in UK cases when the employer is shown a clear mismatch between the dates/pay used and the documents already on file.
One neutral outcome seen in UK workplaces is that the employer recalculates and pays the shortfall as a separate top-up after the leaver has already received the final payslip.
Related issues on this site
If the redundancy situation is tied to irregular hours or shifting rotas, it can help to check how working patterns affect pay records and continuity, especially where the employer says service “reset” after a gap; the page on Zero-hours contract rights can be relevant at the point an employer argues the contract type changes what counts as normal pay. If the employer offers a repayment arrangement instead of paying the shortfall, the consequences of missing that arrangement can matter later, and the page on payment plan disputes may fit when a written plan is proposed after the exit.
FAQ and quick checks
Payroll breakdown request
A redundancy pay breakdown request usually works best when it asks for start date, end date, weekly pay used, and whether the figure is statutory or enhanced.
Enhanced scheme wording
Enhanced redundancy scheme wording is often found in the redundancy pack, intranet policy, or a written offer email, and it should be requested if the employer says the payment is discretionary.
Final payslip mismatch
A final payslip redundancy mismatch can be raised as soon as the payslip is available, and it helps to ask payroll to separate redundancy, notice, and holiday pay into distinct lines.
Conciliation timing
ACAS early conciliation timing matters when the employer delays, so starting the process promptly helps protect the option to escalate if the calculation is not corrected.
Before you move on
Save copies of the key documents today, send the breakdown request, and diarise the date to start early conciliation if the employer does not respond in writing. Redundancy exits often come with time pressure and being pushed to accept quickly.
Get help with the next step
Contact UKFixGuide — If the redundancy figure looks wrong, share the dates and pay basis you have been given so the next message to HR/payroll can ask for the exact missing breakdown.
