Statutory redundancy pay if employees have at least 2 years of continuous service.
The amount paid depends on age, years of service, and weekly salary (up to a cap). The formula is:
half a week’s pay for each full year you were under 22
one week’s pay for each full year you were 22 or older, but under 41
one and half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years.
The maximum weekly pay used for calculation is capped at £700 and tax free up to £30K (2024 figure).
Refer to individual contracts as enhanced redundancy pay may be offered.
Start with a fair investigation. Consider suspension only if necessary. If there’s a case to answer, invite to a hearing with evidence, allow a companion, decide an appropriate outcome, and offer a right of appeal.
Read moreYes, you can continue with an investigation if the person goes off sick, but you should be mindful of their health. Consider adjusting the process to accommodate their condition, such as delaying interviews or offering alternative communication methods. Ensure the employee is treated fairly and reasonably throughout the process. For free managers guides and templates […]
Read moreMake repeated contact attempts, document everything, and invite them to a meeting. If no valid reason emerges, manage under your disciplinary policy.
Read moreHoliday Entitlement – (pro rata) number of days worked/number of days in a year x Holiday Entitlement (Incl Bank Holidays) Subtract any holiday already taken. If the employee has taken more than accrued, deduct the overused days from their final pay. If they’ve accrued more leave than taken, pay for the remaining days. For free […]
Read moreStatutory redundancy pay if employees have at least 2 years of continuous service. The amount paid depends on age, years of service, and weekly salary (up to a cap). The formula is: half a week’s pay for each full year you were under 22 one week’s pay for each full year you were 22 or […]
Read moreUse a reliable payroll system, understand local tax and employment laws, and standardise processes across locations. Where needed, work with local experts or providers to ensure compliance, accuracy, and timely payments.
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