Redundancy Payments

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by: Tom Tilinhouse
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Word Count: 365
Date: Sat, 6 Nov 2010 Time: 6:12 AM

In the UK there exists a process of statutory redundancy pay that's available for employees to assert when his or her employment concludes. There's a straightforward calculation used to look for the amount that an member of staff is eligible to obtain when they meet the eligibility criteria.

If the employees job is terminated as a result of business closing or the closure of the branch location they are based at they're typically classed to be made redundant. Additionally, when there is not sufficient work available in the field where the employee works could also be sufficient grounds for redundancy.

Statutory redundancy payments are only offered to employees that have already been in ongoing employment for at least two years. Employees with less than 2 yrs service can always have a contractual entitlement to redundancy pay determined by their contract of employment. You should note that even employees under fixed term contracts have entitlement to statutory redundancy pay if their contract isn't renewed.

There are certain classes of employee that do not qualify for statutory redundancy payments. Included in this are apprentices whose contracts end at the end of the period of apprenticeship. Additional classes of employee are share fishermen plus some domestic servants.

Statutory redundancy payments may also be claimed by workers who are laid off or positioned on short-time working. Claims might be made in which the lay-off or short time working has lasted more than a month or a lot more than 6 weeks in a thirteen week period.

When carrying out a statutory redundancy pay calculation there are particular elements that require to be taken into consideration. The actual calculation itself utilizes the employees weekly pay. The existing maximum given to the weekly pay is three hundred and eighty pounds. The worker accrues payments depending on their total length of continual service. For each year a worker works younger than twenty two the employee obtains 1 / 2 of one weeks pay per year. Over the age of twenty-two but under forty one an employee will get one weeks pay per year and over forty one they get one and a half weeks pay per year.

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