Statutory redundancy payments are calculated based on a formula which uses length of service (capped at 20 years), age and weekly pay (currently capped at £538). 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:
Some employers also operate ‘enhanced’ redundancy schemes, where employees’ redundancy payments are calculated using a more generous formula.
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). 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 employers prefer to make a payment in lieu of notice in these circumstances in line with the employee’s contract of employment.
Limited access modeSorry, you need to be an HR Protect client to access this content.
HR Protect clients receive all the employment law advice they need across the year, delivered by experienced specialist lawyers, at a single fixed price. In addition, being a client gives you access to our templates, flowcharts and guidance notes on this Hub, where you can also return to your favourites, share content with colleagues, and manage your account.
For a full list of benefits, click here, or enquire to talk to one of our lawyers about how it could work for your organisation, and to receive a bespoke quotation.
Already have an account?
Log in below to access this content.