STATUTORY REDUNDANCY RATE TO INCREASE FROM FEBRUARY 2011
By Gail Escolme, 19 January 2011 –
Employers considering making redundancies must remember that the maximum statutory redundancy rate will increase from £380 per week to £400 per week from 1st February 2011.
If an employee earns more than the current statutory maximum per week they are only entitled to be payed the statutory maximum for each week. If they earn less than the statutory maximum then the redundancy calculation would be based upon their normal gross weeks pay.
Statutory redundancy is calculated on the number of complete years worked and does not become payable until the employee has worked for 2 complete years.
An employee being made redundant is entitled (after having worked 2 complete years) to redundancy paid as follows:-
any years worked under the age of 22 - 0.5 weeks pay for each year
any years worked between the ages of 22-41 - 1 weeks pay for each year.
any years worked over the age of 41 - 1.5 weeks pay for each year.
For more information about redundancy give me a call or drop me an email.
Gail Escolme