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How do I calculate redundancy entitlement?

How do I calculate redundancy entitlement?

Firstly, check your policies and procedures or any local agreements to see if there is any requirement to make enhanced redundancy payments.  Subject to that, statutory redundancy payments are calculated based on a formula which uses length of service (capped at 20 years), age and capped weekly pay. Employees need a minimum of two years’ continuous employment to be entitled. There is a useful Government calculator for working out redundancy payments, which can be accessed here:

As we say however, some schools may have ‘enhanced’ redundancy schemes (which may be inherited from the local authority), where employees’ redundancy payments are calculated using a more generous formula, so best to double check this.

Employees who are being made redundant are also entitled to be given notice in accordance with their contract of employment (or statutory minimum notice, whichever is higher). For teachers, this will be the period of notice set out in the Burgundy Book – it is therefore important that the timing of any proposed restructures involving teaching roles are planned with these notice periods in mind.

An employee can be required to work during this notice period as usual, although they have the right to a reasonable amount of paid time off to look for alternative employment (for example to attend job interviews). In practice, some schools prefer to make a payment in lieu of notice in these circumstances in line with the employee’s contract of employment.

Finally, be mindful that in relation to support staff employees who are members of the LGPS there may be a requirement to pay a “pension strain cost” to the LGPS if they are over 55 years and made redundant.  This payment catch schools off guard and can be particularly expensive.