Pear Computing Systems UK Statutory Redundancy Pay Calculator from Pear Computing Systems Ltd (0870 241 1589)

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 see below.

The calculator will work out the statutory amount payable, subject to the statutory limit on a week's pay for this purpose (increased from £330 to £350 where the date of dismissal was on or after 1st February 2009 until the 30th September 2009. The limit from the 1st October 2009 is £380). 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.

NOTE : Update 1st October 2009 - Change to Statutory Redundancy Pay Maximum Weekly Amount. In line with the 2009 budget statement the statutory limit on weekly pay for redundancy purposes is £380.

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 recommend that you do not input actual names on to the calculator.

To use the calculator, enter :

• Employee ID (optional)
• Age at Dismissal (Mandatory)
• Completed Years of Service at the appropriate date (Mandatory)
• Weekly Pay (Mandatory)

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 employee details to list below" 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.

• (i) 1/2 week's pay for each year of service before 22nd birthday (until 1st October 2006 service before 18th birthday does not count - see note 3 below)
• (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 after 41st birthday (until 1st October 2006 service after 65th birthday does not count - see note 1 below).
• (iv) Only 20 most recent years (maximum) to be taken into account.

1. Until 1st October 2006, 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 (or if a unisex "normal retiring age" of below 65 applies in the employing business, that lower age will replace 65) (ERA 1996 s.156, which is repealed from 1st October 2006).
2. Until 1st October 2006, if 64 when made redundant, statutory redundancy pay is reduced by 1/12th for each complete month between 64th birthday and "the relevant date" (ERA 1996 s.162(4) & (5), repealed from 1st October 2006).
3. Until 1st October 2006, service before age 18 is not taken into account for statutory redundancy pay (ERA 1996 s.211(2), which is repealed from 1st October 2006).
4. Two years' service is required before a person is eligible for statutory redundancy pay (ERA 1996 s.155)

• (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 after 41st birthday (until 1st October 2006 service after 65th birthday does not count - see note 1 below).
• (iv) only 20 most recent years (maximum) to be taken into account.

1. Until 1st October 2006, there is generally no right to any unfair dismissal compensation if the dismissal (technically the "effective date of termination") occurs on or after the employee's 65th birthday, which is normally the absolute upper age limit for being able to claim unfair dismissal (ERA 1996 s.109(1), repealed with effect from 1st October 2006).
2. However even before this upper age limit is removed altogether on 1st October 2006 there are some exceptional cases in which there is no age limit (for example dismissal an over-65 employee dismissed for "whistle blowing" in a health and safety related situation - see main topic "Unfair Dismissal", sub-topic "Age Limits" in the main www.emplaw.co.uk program).
3. Until 1st October 2006, 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) repealed with effect from 1st October 2006).
4. Until 1st October 2006, 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"(ERA 1996 s.119(5), repealed with effect from 1st October 2006).
5. Service BELOW AGE 18 is taken into account for unfair dismissal award calculations but until 1st October 2006 it is not taken into account for statutory redundancy pay calculations (see above). Therefore in calculating unfair dismissal basic award before 1st October 2006 a half-week's pay should BE ADDED to the value displayed by the redundancy pay calculator in this program for each full year's service before 18th birthday, provided that the 20 years maximum service to be taken into account is not exceeded (see (iv) above).
6. One years' service is normally required before a person is eligible to claim unfair dismissal (ERA 1996 s.108)

TERMS AND CONDITIONS
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 neither DiscLaw Publishing Ltd nor 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.

Click HERE to return to the PEAR REDUNDANCY CALCULATOR

PEAR COMPUTING SYSTEMS LTD   0870 241 1589   (e-mail sales@pearsystems.com)
emplaw.co.uk - DISCLAW PUBLISHING LTD   01904 471492   (e-mail info@emplaw.co.uk)

For additional resources and news for employers and employees relating to redundancy, visit the RedundancyTips website at www.redundancytips.co.uk

© DiscLaw Publishing Ltd & Pear Computing Systems Ltd 2009