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Redundancy
6. Statutory Payments
Statutory redundancy payments are calculated according to the number of years a person has worked for you, and the employee's weekly earnings.
6.1 There will be an entitlement to statutory redundancy payments for everyone dismissed because of the situation, except:
- People with less than two years' service (technically, it is possible for a 17-year-old to have two years' service).
- People who unreasonably refuse an offer of suitable alternative employment.
6.2 Service is counted up to a maximum of 20 years, with up to 1.5 weeks' pay for each year of service.
- Each year from age 41 onwards entitles a redundant person to 1.5 weeks' pay.
- Service between ages 22 and 41 counts for one week a year.
- Service between ages 17 and 22 counts for half a week a year.
6.3 A 'week's pay' is based on actual income (or average weekly earnings), but is capped at £400 a week.
- Maximum statutory redundancy pay is therefore 20 x 1.5 x £400 = £12,000.
Labels: Employment Regulations
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