FAQs

What are the legal requirements for redundancy pay?

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.

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Other questions we get asked about Support

Support

Can I record an absence for someone who has a disability?

Yes, you can record an absence for an employee with a disability, but it’s important to distinguish if the absence is disability-related. You must treat it fairly, ensure reasonable adjustments are considered, and avoid penalising the employee for disability-related absences. For free managers guides and templates  –  Supporting Disabilities support  (Support section)  👉 – https://breathingspacehr.co.uk/how-to-hr/

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How do I correctly calculate holidays for leavers?

Holiday 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 […]

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If an employee is sick during their notice period do I pay SSP or normal pay?

You pay normal pay if the employee is off sick and unable to work during their notice period.

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How can I reduce the risk of lawsuits due to wrongful termination?

To minimise legal risks: Consult Experts – Seek HR advice when handling complex HR matters! Follow Employment Laws – Stay updated on labour laws and regulations. Document Everything – Keep detailed records of performance, complaints, and terminations. Train Managers & HR – Provide training on fair hiring, workplace conduct and payroll compliance. Use Clear Policies – Ensure policies on termination, discrimination, and wages are well documented and consistently applied. Conduct Regular Audits – Review payroll, contracts, and workplace practices to identify risks.

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Support

How do I legally lay off an employee?

Check the employment contract for a layoff clause. Provide written notice explaining the reason for the layoff. Offer statutory guarantee pay if eligible. Consult with the employee and explore alternatives (e.g., reduced hours). If the layoff is extended, consider redundancy procedures. The employee can also request redundancy. Employees can apply for redundancy and claim redundancy […]

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Support

What documents should we keep during grievances/disciplinaries?

Investigatory notes, statements, letters/invitations, evidence considered, outcome letters, and appeal records. Store securely and only as long as necessary.

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