How do I calculate an employee’ statutory redundancy entitlement?

How do I calculate an employee’ statutory redundancy entitlement?

If an employee has at least two years’ continuous service by time their employment ends because of a redundancy situation, they are entitled to receive a statutory redundancy payment.

Statutory redundancy pay is calculated according to a formula based on age, length of service and pay. Firstly, you calculate the length of their continuous service. Then, counting backwards from the date that their employment terminates, the employee is entitled to:

  • One and a half week’s pay for each complete year of service after age 41;
  • One week’s pay for each complete year of service between ages 22 and 40; and
  • Half a week’s pay for each complete year of service under the age of 22.

A maximum of 20 years’ service can be taken into account when calculating a statutory redundancy payment. A week’s pay is capped at the statutory maximum (currently £400), but the amount is usually increased in February each year.

 

Disclaimer: This information is provided for general guidance only and is not intended to constitute legal advice. You must consult our employment solicitors if you require advice on your situation or circumstances.

Blog Posts

Is your fulfilment business under threat?

07/08/2017

The Fulfilment House Due Diligence Scheme - the new weapon in the war on…

Read More
Upcoming Events

FREE Seminar – Planning your future

11/09/2017

Gotelee Solicitors invite you to a FREE seminar which will provide you with some…

Read More
News Posts

Ruling means employers may soon have to deal with problems they thought were closed

19/09/2017

The Supreme Court’s decision to rule that Employment Tribunal fees are ‘illegal’ and a…

Read More

Testimonials

"Friendly and helpful staff. A smooth and efficient legal service."

- MR

"Professional yet friendly service available from a conveniently located office."

- JR

"Clear, helpful advice, polite and friendly, prompt attention."

- GP

"High degree of professionalism whilst remaining sympathetic and friendly."

- PC

"Helpful and swift service, delivered in a friendly and approachable way."

- AC

"Gotelee inspires a sense of calm, confidence, trust & history."

- PB

"Determination, patience and diligence of Chris Moffat."

- MLP

"Diana really seemed to care and made the whole process as painless as possible."

- PL

"Rhonda Pryke was very helpful, explained what was to happen, dealt with queries very efficiently."

- DH

"All reception staff very friendly, Hilary Durrell made everything simple so I could understand what was needed."

- AD

Please select preferred method of contact

* We will only contact you by telephone if you select this as primary form of contact.