Do you have to pay redundancy pay during covid-19?

During the coronavirus (COVID-19) pandemic, employees continue to have the same redundancy rights, including redundancy pay. This includes employees who have been on furlough. You should check your employment contracts as they might say you need to pay more than the statutory amount.

Do you have to pay more for voluntary redundancy?

You should check your employment contracts as you might need to pay more than the statutory amount. You can choose to pay higher amounts if you want to encourage voluntary redundancies. Calculate the average weekly pay for the previous 12 weeks from the date you made them redundant.

How is redundancy pay calculated for a 35 year old employee?

They’re put on flexible furlough on 80% pay for the remaining 15 hours, receiving £8 an hour. When calculating redundancy pay, their wage on flexible furlough must be topped up to 100%. This means they must receive £300 a week redundancy pay. An employee who is 35 has worked for their employer for 6 years.

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.

When do you get extra redundancy pay for staff?

You can give your staff extra redundancy pay if you want to, or have a qualifying period of less than 2 years. You can use the redundancy pay calculator to work out payments.

Can a redundancy payment be included in a termination package?

As highlighted in the above example, where the element of a termination package is either related to an enhanced (contractual or non-contractual) redundancy payment or a non-contractual compensation for loss of employment payment, it can benefit from an exemption for the first £30,000.