Statutory redundancy pay: calculation
We explain how statutory redundancy pay is calculated.
Once an employer has established that an employee is entitled to statutory redundancy pay under the qualifying rules, it needs to calculate how much the redundancy payment will be.
- Topic of the week: Statutory redundancy pay calculation Statutory redundancy pay is calculated according to the employee's age and length of service.
Also
The Redundancy rights section of the HR & Compliance Centre employment law manual explains the law relating to statutory redundancy pay and other redundancy-related employment rights, while the redundancy flowchart in HR & Compliance Centre's Liveflo module helps you to follow a legally compliant process when carrying out redundancies. The flowchart also includes a redundancy pay calculator, which can be used to calculate both statutory and enhanced redundancy payments.
The HR & Compliance Centre policies and documents section includes a number of model documents on redundancy, including a Redundancy policy and a Form setting out particulars of a redundancy payment, which can be used to provide written particulars of how a redundancy payment has been calculated.
We provide a statutory redundancy payments ready reckoner and a table showing the relevant date for the purposes of redundancy in the HR & Compliance Centre quick reference section.
The HR & Compliance Centre FAQs section provides answers to questions about redundancy rights, for example: Is an employee who is accepted for voluntary redundancy entitled to a statutory redundancy payment? and Should regular overtime be taken into account when calculating weekly earnings for redundancy pay purposes?
