Enhanced redundancy payments

Paragraph 13 of sch.9 to the Equality Act 2010 provides that employers that have an enhanced redundancy scheme will not be in breach of the age discrimination provisions in the Act, provided that their scheme mirrors the statutory redundancy scheme. Employers wishing to make enhanced redundancy payments are required to follow one, or more, of three options set out in the Act to ensure that the payments are not discriminatory on the basis of age. ¹

The new redundancy pay calculator on Liveflo, available as part of your XpertHR subscription, enables you to calculate enhanced redundancy payments in accordance with the provisions of the Equality Act 2010. Watch a video in which Jo Stubbs, head of content on XpertHR, explains how to use the calculator. 

¹If an enhanced redundancy scheme does not follow these options it will still be lawful if the employer can objectively justify the scheme. 

²The limit on a week's pay for the purpose of calculating a statutory redundancy payment is £430 (from 1 February 2012 - prior limit £400). 

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