This facility calculates the amount of UK Statutory Redundancy Pay due to an employee on dismissal. Select Age at Dismissal, and enter Years of Service and Weekly Pay. Then click "CALCULATE" to show the entitlement according to the statutory calculation.
Age is in full years and Years of Service are full completed years. You must have completed at least two full years of service to be entitled to statutory redundancy pay, and the calculation is based on a maximum of twenty years service. If the Weekly Pay is greater than £464 (from 6th April 2014) then the calculated amount will be limited to a figure based on a statutory maximum for weekly pay of £464. (Prior to 6th April 2014 the previous limit was £450). The calculated amount is based on a formula involving these elements of age, service and pay, as laid down by the UK government. Although age is a factor, upper and lower age limits were removed in 2006 for compatibility with age discrimination legislation.
For further details of Pear's solutions for organizations dealing with redundancy, click here. Further resources for employers and employees concerned with redundancy can be found at www.redundancytips.co.uk
Note : The statutory maximum weekly pay rises to £475 from £464 with effect from 6th April 2015. From that date the default maximum in this calculator will change accordingly. You can alter the figure prior to that date in the calculator if the date of termination for your calculation is after that date.
The calculation of the redundancy pay entitlement is performed in line with the rules laid down by the UK Government's rules set out at https://www.gov.uk/staff-redundant/redundancy-pay
PLEASE NOTE : The information on this page is provided as-is as a calculation facilty for employers or employees. We cannot provide any legal or advisory information on specific cases, so please DO NOT contact us for such advice. If you require further assistance with your own circumstances then you should take professional advice from an appropriate source such as an Employment Lawyer, Trade Union, Citizens Advice Bureau or other agency competent to provide such assistance.