"Long service" matters in UK employment law because several rights and payments increase with the length of time an employee has worked for you. Employers often ask whether they must pay long-serving staff anything extra. The honest answer is: in some specific situations, yes, and here is a plain-English guide for England and Wales.
What "long service" affects
Length of continuous service drives a number of statutory entitlements:
- Statutory notice, increases with service;
- Statutory redundancy pay, needs and is calculated by years of service;
- Eligibility for certain claims (e.g. ordinary unfair dismissal currently needs two years).
So although there is no general duty to pay staff more just for staying, length of service does create specific obligations.
Statutory notice grows with service
The minimum notice you must give an employee increases with service: broadly one week after one month, then one week per complete year of service, up to a maximum of 12 weeks (the contract may provide longer). Long-serving employees are therefore entitled to longer notice (or pay in lieu).
Statutory redundancy pay, the main "extra" for long service
If you make a long-serving employee redundant, you must usually pay statutory redundancy pay, provided they have at least two years' continuous service. It is calculated using an age-banded formula based on each full year of service (up to 20 years):
- half a week's pay for each full year worked under age 22;
- one week's pay for each full year worked between 22 and 40;
- one and a half weeks' pay for each full year worked aged 41 or over.
A weekly pay cap applies, and it is reviewed every April. (For example, the cap was £700 per week from April 2024, giving a maximum statutory payment of £21,000 for 20 years' service; the figures rise with later updates, check the cap current at the date of redundancy.) Many employers also offer enhanced contractual redundancy for long service.
Contractual long-service benefits
Beyond statute, some employers choose to reward loyalty, long-service awards, extra holiday with service, or enhanced sick pay/pension. These are contractual or discretionary, not legally required, but once promised they may become enforceable terms. Be consistent to avoid discrimination issues.
A note on age discrimination
Service-related benefits can interact with age discrimination law. Modest service-based benefits are generally permitted (and benefits based on up to five years' service are specifically allowed), but longer service criteria should be justifiable as rewarding loyalty/experience.
Key takeaways
- "Long service" (continuous employment) increases several entitlements, notably statutory notice and statutory redundancy pay.
- You must pay statutory redundancy pay to employees with 2+ years' service who are made redundant, on an age-banded formula (max 20 years), subject to a weekly cap reviewed each April (e.g. £700/£21,000 from April 2024, check current figures).
- Statutory notice rises by one week per year (max 12 weeks).
- Extra long-service rewards are optional/contractual, keep them consistent and mindful of age-discrimination rules.
Sources
- Employment Rights Act 1996 (statutory notice periods; statutory redundancy pay, age-banded formula; weekly pay cap reviewed each April)
- Equality Act 2010 (age discrimination; permitted service-related benefits)
- Contractual/enhanced redundancy and long-service benefits (where offered)
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor.