INSTRUCTIONS for use

The Calculator will calculate the British statutory redundancy amount for employees based on their AGE IN YEARS AT DATE OF DISMISSAL, their COMPLETED YEARS OF SERVICE (whole years only, no fractions), and their WEEKLY PAY at the appropriate date. For details of specific points related to Age Limits, see below.

The calculator will work out the statutory amount payable, limited by the statutory maximum (currently £290 as from 1st February 2006). You should not alter this limit unless you are certain that some other previous amount is definitely appropriate in your circumstances. For comparison purposes it will also display the unlimited calculation.

If you wish to enter a batch of employee details to print out, you can optionally enter an employee ID of up to 12 characters. As this is an online service we do not recommend that you input actual names on to this calculator.

To use the calculator, enter :

Then click the CALCULATE button.

The calculator will show the number of weeks' pay due, the statutory amount (limited where appropriate), and the unlimited amount. If you are planning redundancies involving an additional voluntary amount, you may also enter these in the appropriate box.

If you are processing a number of employees you can then click the ADD TO LIST button and it will add the details to the table at the foot of the screen. This will also record a running total of statutory, unlimited and voluntary amounts.

When you have completed entry of all details, use the browser's PRINT button/menu option to print the page.

This calculator is intended as a simple tool for small-scale use. If you have more complex redundancy management requirements, see details of our Redundancy and Redeployment solutions here, and contact us on 0870 241 1589, or by email to garrym@pearsystems.com  Pear will, of course, respect all confidence in redundancy matters. Pear can provide software packages and bespoke solutions to meet the requirements of businesses and organisations of all sizes.

If you require further assistance with legal aspects of employment law, contact DiscLaw Publishing Ltd. DiscLaw's emplaw.co.uk website provides comprehensive legal information on all aspects of employment law.

Age Limits

(Courtesy of DiscLaw Publishing Ltd.)

FORMULA AND AGE LIMITS FOR STATUTORY REDUNDANCY PAY AND UNFAIR DISMISSAL BASIC AWARD CALCULATION (see also notes in the main program under "Redundancy/Age limits" and "Unfair Dismissal/Age limits").

1. STATUTORY REDUNDANCY PAY (Employment Rights Act 1996 s.162 unless stated)

(i) 1/2 week's pay for each year of service between 18th and 22nd birthday.

(ii) 1 week's pay for each year of service between 22nd and 41st birthday.

(iii) 1 1/2 week's pay for each year of service between 41st and 65th birthday.

(iv) Only 20 most recent years (maximum) to be taken into account.

(v) No-one has the right to statutory redundancy pay if he/she is dismissed (technically if "the relevant date") is after his/her 65th birthday (ERA 1996 s.156(2))

(vi) If a unisex "normal retiring age" of below 65 applies in the employee's business, that age will replace 65 as the upper limit (ERA 1996 s.156(2))

(viii) If 64 when made redundant, statutory redundancy pay is reduced by 1/12th for each complete month between 64th birthday and "the relevant date".

(viii) Service before age 18 is not taken into account for statutory redundancy pay (ERA 1996 s.211(2))


2. UNFAIR DISMISSAL BASIC AWARD (Employment Rights Act 1996 s.119 unless stated)

(i) 1/2 week's pay for each year of service before 22nd birthday.

(ii) 1 week's pay for each year of service between 22nd and 41st birthday.

(iii) 1 1/2 week's pay for each year of service between 41st and 65th birthday.

(iv) only 20 most recent years (maximum) to be taken into account.

(v) In most cases there is no right to unfair dismissal compensation if the dismissal (technically the "effective date of termination") occurs on or after the employee's 65th birthday. 65 is the normal upper age limit for both basic and compensatory award (ERA 1996 s.109(1))

(vi) There are exceptional cases in which there is no age limit, see main topic "Unfair Dismissal", sub-topic "Age Limits".

(vii) If a unisex "normal retiring age" of other than 65 (greater or less) applies in the employee's business, that age will replace 65 as the upper limit (ERA 1996 s.109(1)(a))

(viii) If aged 64+ when dismissed, the BASIC AWARD component of unfair dismissal compensation is reduced by 1/12th for each complete month between the employee's 64th birthday and the "effective date of termination". Compensatory award is unaffected.

(ix) Service BELOW AGE 18 is taken into account for unfair dismissal award calculations. This is different from statutory redundancy pay (see above). For unfair dismissal basic award calculations a half-week's pay for each full year's service before 18th birthday should BE ADDED to the value displayed by the calculator in this program, provided that the 20 years maximum service to be taken into account is not exceeded (see (iv) above).

TERMS AND CONDITIONS

© Website and Software - Pear Computing Systems Ltd 2006

The Statutory Redundancy Pay calculator is provided "as-is" as a calculation tool for statutory redundancy payments. It is provided for use without warranties and Pear Computing Systems Ltd. accept no liability for its use, or for losses arising from its use either directly or consequentially. It is the responsibility of any person or organisation involved in redundancy schemes to ensure the accuracy of their details and calculations.

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