As of 13 August 2026, AI can calculate statutory redundancy pay.
This still needs a person who signs their name to it.
Can you do it?
5 minutesto a draft.
30 minutesto something you’d act on.
Cost, all in£0
Skill neededchat-fluent
Who has to check ityou
What the alternative costsA spreadsheet calculation is the alternative; no price is provided in the supplied data.
If this goes wrong: you pay the wrong amount or give the wrong explanation, and the employer has to correct the payroll and deal with the employee's complaint.
What to actually do
Hand it to a person
The route this page recommends
A person who owns the outcome does this end to end, worth it when the failure is dear.
Use a tool built for this
Second choiceDo it yourself
The distant thirdA chat interface, chat-fluent skill, and roughly 30 minutes until you can act on the result.
How to actually do it
- Open the current GOV.UK statutory redundancy pay guidance and note the weekly pay cap, qualifying service rules and age-band multipliers shown there.
- Gather the employee's contract, payroll records and employment history, including birth date, start date, proposed termination date, gross weekly pay and any earlier service with the employer or a connected employer.
- Confirm that the reason for dismissal is redundancy and record any fixed-term, apprenticeship, family-related leave or other circumstance that could affect entitlement or qualifying service.
- Paste the gathered facts into the prompt, replacing every bracketed slot, and ask the chatbot to calculate the statutory amount without filling in missing facts.
- Compare the chatbot's stated GOV.UK limits, qualifying service and age bands with the current GOV.UK guidance, then recalculate each table row using a calculator or spreadsheet.
- Ask payroll or an employment adviser to check the result if the service history, eligibility, weekly pay or contractual redundancy terms are disputed or unusual.
- Save the calculation, source link and checked payroll records with the employee's redundancy paperwork before communicating the amount or processing payment.
Prompt
Calculate the UK statutory redundancy pay for the employee described below. Use the current rules and limits published on GOV.UK as at 2026-08-13, and link to the relevant GOV.UK page. Do not assume a fact that is missing. First list any missing information and any eligibility issue that needs checking. Then show the calculation in a table with each year's age band, completed years of qualifying service, weekly pay used, multiplier and subtotal. State the statutory weekly pay cap and any other limit you applied, separating the statutory calculation from any contractual or enhanced redundancy payment. Check whether the proposed termination date affects the result. Treat the output as a calculation aid, not a decision on entitlement, and flag anything an employer or payroll professional must confirm. Employee birth date: [DD/MM/YYYY] Employment start date: [DD/MM/YYYY] Proposed termination date: [DD/MM/YYYY] Gross weekly pay: [£ amount] Average weekly pay calculation period and figures: [details] Reason for dismissal: [redundancy or other reason] Previous employment with the employer or connected employer: [details] Contractual or enhanced redundancy terms: [details or none] Any fixed-term, apprenticeship, family-related leave or other special circumstances: [details or none]
Open it prefilled in ChatGPT or Claude, or copy it into Gemini, which takes no prefill link.
What it gets wrong
- AI cannot establish disputed continuous service or decide whether an unusual employment arrangement qualifies.
- AI cannot know whether your contractual redundancy scheme gives more than the statutory amount unless you provide and interpret the relevant terms.
- AI may use an outdated weekly pay cap or apply the wrong termination-date rule if you do not require a current GOV.UK source.
- The calculation does not transfer liability away from the employer, which remains responsible for the payment and any employment dispute.
Even on a YES, the friction has a name: legal accountability, stakes of error and judgement under ambiguity.
How we scored this
Five axes, each scored nought to two by hand: ten means AI carries the task cleanly, and the thresholds that turn a total into YES, PARTLY or NO are published in the methodology. Each axis name links to its definition.
| Axis | Score (0–2) |
|---|---|
| Output | 2 |
| Inputs | 2 |
| Verification | 1 |
| Liability | 1 |
| Effort delta | 2 |
| Total | 8 / 10 |
The methodology and its thresholds are published in full.
FAQ
- Can ChatGPT calculate statutory redundancy pay?
- Yes, it can calculate the mechanical part if you provide the employee's age, qualifying service and eligible weekly pay. Check the formula and current limits against GOV.UK, because the employer remains responsible for the result.
- What information does AI need to calculate redundancy pay?
- Give it the employee's birth date, employment dates, proposed termination date, weekly pay and any previous connected service. Also provide the reason for dismissal and any contractual or enhanced redundancy terms, because these can affect what you actually owe.
- Can AI tell me if someone is entitled to redundancy pay?
- It can identify the usual eligibility questions, but it cannot reliably resolve disputed service, special employment arrangements or the facts of a particular dismissal. This is not professional advice, and a serious or disputed case needs an employment adviser or payroll professional.
- Is an AI redundancy pay calculation legally binding?
- No. It is a calculation aid, not a binding determination or a substitute for the employer's payroll records and legal responsibilities. Keep the source and working papers, and obtain professional advice where the entitlement or amount is contested.
Nearby answers
- Can AI add a new employee to my UK payroll?PARTLY
- Can AI apply the correct tax code to an employee?NO
- Can AI audit my UK payroll for errors?PARTLY
- Can AI automate my UK payroll?NO
- Can AI calculate employee National Insurance deductions?YES
- Can AI calculate employer National Insurance contributions?PARTLY
Assessed by gpt-5.6-luna (gpt-5.6-luna) on 2026-08-13, second-checked by an independent model. Wrong somewhere? Email [email protected] and it gets re-checked.
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