Statutory redundancy pay and basic award calculator

Ready reckoner table for calculating the statutory redundancy payment or unfair dismissal basic award due to an employee.

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Practical Law Employment

To calculate a statutory redundancy payment or unfair dismissal basic award under section 162 or 119 of the Employment Rights Act 1996 (ERA 1996), use the table to find the appropriate multiplier based on the employee's age and number of complete years' service at the date of dismissal. Multiply this by the employee's gross weekly pay, subject to the limit on a week's pay applicable at the date of dismissal (see Checklist, Current rates and limits (www.practicallaw.com/4-200-2038)).

Notes

  • Employees must have at least two years' continuous service in order to qualify for statutory redundancy pay.

  • Those employees whose employment commenced before 6 April 2012 must have at least one year's service to bring a claim for ordinary unfair dismissal. However, the Unfair Dismissal and Statement of Reasons for Dismissal (Variation of Qualifying Period) Order 2012 increased the period of continuous service required to two years for those whose employment commenced on or after that date.

  • A maximum of 20 years' service should be taken into account when calculating both the basic award and the statutory redundancy payment (section 162(3) and 119(3), ERA 1996).

For an automatic statutory redundancy pay calculator, see the BIS redundancy ready reckoner (www.practicallaw.com/0-200-3172).

 
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