What is the formula for calculating redundancy pay?

How does the redundancy calculator work? By law, eligible employees are entitled to: half a week’s pay for each full year of service under 22-years-old; one week’s pay for each full year of service between 22 and 41-years-old; and one and a half week’s pay for each full year of service over 41-year-old.

How long does a Section 188 last?

Under section 188, employers are obliged to inform and collectively consult where they propose to dismiss as redundant 20 or more employees at one establishment within a period of up to 90 days.

How is redundancy calculated after furlough?

If your pay is different each week, your weekly pay must be worked out by using the 12 weeks leading up to the day you got your redundancy notice. Your pay must be topped up to 100% for any hours you were on furlough. Add up the total amount of pay during the 12 weeks and divide it by 12 to get your weekly pay.

How much redundancy do you get for 20 years?

A maximum of 20 years’ service is taken into account and there is a limit to a week’s pay for statutory redundancy purposes, which in 2020 was set at £538. This means that the maximum payment under the statutory scheme is currently £16,140 (i.e. 30 weeks at £538).

Do you get taxed on redundancy?

Statutory redundancy pay under £30,000 is not taxable. What you’ll pay tax and National Insurance on depends on what’s included in your termination payment.

What is a Section 188 redundancy notice?

APPLICABLE LAW 188 can briefly be summarised as follows: An employer who wants to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less must consult with appropriate representatives (recognised union or if there is not one, elected representatives)

Can I be made redundant if my job is still there?

Although there are many reasons for legitimate redundancy, it’s illegal for you to be made redundant whilst your job still exists. Therefore, if you think someone else has taken your job after you’ve been made redundant, seek professional advice immediately.

Is redundancy based on furlough pay?

Redundancy and furlough pay Statutory redundancy payments must be calculated based on an employee’s pre-furlough salary. This was confirmed by UK Government guidance.

Do you still get redundancy pay after furlough?

Government brings in law to ensure furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate. Furloughed employees who are then made redundant will receive redundancy pay based on their normal wage, under new laws being brought in today (Thursday 30 July).

How much is statutory redundancy 2022?

If you were made redundant on or after 6 April 2022, your weekly pay is capped at £571 and the maximum statutory redundancy pay you can get is £17,130. If you were made redundant before 6 April 2022, these amounts will be lower. Calculate your redundancy pay.