Is redundancy pay calculated on contracted hours?

Statutory redundancy pay is calculated using a formula that includes the employee’s gross weekly pay, subject to a maximum. A week’s pay is calculated based on the employee’s “normal working hours” in a week or the average working hours in a 12-week period if their hours vary.

When do I get my redundancy payment if I have been made redundant?

You may also be able to claim for redundancy payments if you have been made redundant temporarily for either: If you are claiming temporary redundancy, you must write to your employer and make a claim within four weeks of your last non-working day within the temporary redundancy period.

When does a company have to start consultation process for redundancy?

This must start at least 30 days before anyone’s job ends. If 100 or more people are being made redundant, group meetings must start at least 45 days before anyone’s job ends. Even if a company is insolvent and is shutting down, there is still a consultation process.

Is there a length of service limit for redundancy?

Length of service in employment is capped at 20 years when calculating redundancy. Some employment contracts provide for an ‘enhanced’ redundancy payment and it is important to check your contract.

What do if you are made redundant while pregnant in the UK?

There may also be a contractual redundancy pay which is over and above statutory maternity pay and you will need to check your employee handbook, employee contract or ask the employer to find out if you have this benefit. Click here to find out more about the UK redundancy process.

Do you have to pay redundancy pay when you are made redundant?

When an employee’s job is made redundant their employer has to give them redundancy pay, also known as severance pay. Use our Notice and Redundancy Calculator to calculate redundancy pay. Redundancy pay doesn’t need to be paid in some circumstances eg. by some small businesses and to casual employees.

What’s the difference between statutory and contractual redundancy pay?

‘statutory’ redundancy pay – what the law says you’re entitled to ‘contractual’ redundancy pay – extra money your contract says you can get on top of the statutory amount If you’re entitled to either type of redundancy pay, it’ll be paid by your employer.

When does continuous service count for redundancy pay?

Continuous service is the length of time they are employed by the business and doesn’t include unpaid leave. Read about whether casual service counts for redundancy pay in our Library.

When to apply for Fair Work redundancy pay?

Employees who were made redundant before 31 December 2014 may have been entitled to more generous redundancy pay under an old award. If you think this may apply to you or for more information, Contact us. An employer can apply to the Fair Work Commission to have the amount of redundancy they have to pay reduced if: