Teacher Redundancy Pay: How Is It Calculated?

Teachers are subject to the same statutory redundancy pay formula as any other employee — but there are some important differences in how continuous service is counted, how the Burgundy Book affects your entitlements, and how the type of school you work in affects your position. Getting these details right can make a meaningful difference to the figure you are entitled to.

The basic calculation is the same

Statutory redundancy pay for teachers is calculated using the same formula as for any employee under the Employment Rights Act 1996: your age during each year of service, your length of qualifying service, and your weekly pay up to the current cap of £751 per week from 6 April 2026.

The age band multipliers are:

• Under 22: half a week's pay per complete year of service
• Age 22 to 40: one week's pay per complete year of service
• Age 41 or over: one and a half weeks' pay per complete year of service

Service is capped at 20 years and you need at least 2 years of continuous service to qualify. For how the formula works in full, see our guide on how to calculate your statutory redundancy pay.

The key difference: continuous service across schools

For most employees, continuous service means unbroken employment with the same employer. For teachers, the rules are significantly more generous.

Under the Redundancy Payments (Continuity of Employment in Local Government, etc.) (Modification) Order — known as the Modification Order — service with different local authorities and organisations covered by the Order counts as continuous for redundancy purposes. This means that if you have taught at several LA-maintained schools across different local authorities throughout your career, that entire period of service counts towards your redundancy entitlement, even if there were gaps between posts.

Normally, service in a series of local authorities will count as continuous. Service in sixth form colleges, academies, community and technical colleges, FE colleges and non-education posts in local government and related sectors in the 20 years prior to your dismissal will also be counted.

This is a significant protection. A teacher who has spent 25 years moving between LA schools, academies, and FE colleges could have substantially more qualifying service than they might assume.

What does not count as continuous service

Not all previous employment counts. Any period of self-employment or employment in an independent school in the 20 years prior to your dismissal will not count for the purposes of calculating your period of continuous employment.

Agency supply work is also treated differently — agency workers are generally employed by the agency rather than the school, which means that supply work typically does not contribute to continuous service for redundancy purposes unless your contract provides otherwise.

LA schools vs academies

The type of school you work in affects who your employer is and how the Modification Order applies.

In local authority maintained schools, the local authority is typically your employer. Service across LA schools transfers seamlessly for redundancy purposes under the Modification Order.

In academies, the academy trust is the employer. If an employee moves to a new role at an academy or LA school provided there was no break in service — a 31 August finish followed by a 1 September start — the Redundancy Payments Modification Order preserves continuity of service for the purposes of a redundancy payment. The new academy or LA school must recognise the previous service.

However, if you voluntarily move to an academy with a break in service, that academy is not obliged to recognise your previous LA service. This is an important distinction — a TUPE transfer from an LA school to an academy preserves all continuity automatically, but a voluntary move to a new academy does not necessarily carry the same protection unless the academy agrees to it contractually.

If you are in any doubt about whether your previous service will be counted, contact your union — the NEU, NASUWT, or NAHT — before accepting any redundancy offer.

The Burgundy Book and your notice entitlement

Most teachers in maintained schools and the majority of academies are employed under terms that incorporate the Burgundy Book — the national conditions of service for school teachers in England and Wales. The Burgundy Book sets out specific notice periods for teachers that differ from standard statutory notice rules.

Crucially, your statutory entitlement is separate from your contractual entitlement. Your contract of employment might well entitle you to longer notice. Always check the terms of your employment contract to ensure that you have been given the right amount of notice.

Teachers also need to be careful about the distinction between consultation letters and actual notice of dismissal. Notice only counts if it is clearly addressed to you and specifies when your employment will end. If you leave because you receive correspondence warning you that redundancies are coming, you may lose your right to redundancy pay.

Term-date notice periods

Unlike most employees, teachers typically cannot be dismissed at any point in the year. Under the Burgundy Book, termination dates for teachers are tied to the end of terms — 31 December, 30 April, or 31 August. This means that if you are given notice in the middle of a term, your actual last day of employment — and therefore the date used for your redundancy calculation — will be the end of that term or the following one, depending on when notice was served.

This term-date structure can work in your favour if it pushes your last day of employment past a service year anniversary. Always check the precise last day of employment that applies to your situation, as this is the date that determines your qualifying years of service and the weekly pay cap that applies.

What your calculator figure means in practice

The statutory minimum is the legal floor. Many schools — particularly those still operating under Burgundy Book or local authority terms — offer enhanced redundancy pay that removes the statutory weekly pay cap or uses a higher multiplier. Check your contract and any applicable staff handbook carefully, as enhanced terms can significantly increase the figure you are owed.

If you are uncertain whether your school's offer reflects your full entitlement — including all of your qualifying service across previous employers — our calculator gives you the statutory baseline to compare against. Enter your full continuous service start date, not just your start date at your current school, to get an accurate figure.

See our guide on whether you can negotiate a redundancy package for how to approach the conversation if you believe more is warranted.