Statutory redundancy pay

Recent figures issued by the Office for National Statistics (on its website) show that UK unemployment rose by 118,000 in the three months to November 2011, to a total of 2.68 million. With redundancy still very much in the news, it is important that employers are aware of their legal obligations when they have to make employees redundant. While fair selection and proper consultation are essential to the redundancy process, it is also important that employers ensure that they pay employees who are redundant their correct entitlement to statutory redundancy pay. But who qualifies for statutory redundancy pay and when, and how is it calculated? How does an employee’s maternity or paternity leave affect his or her entitlement to redundancy pay?

We provide guidance on statutory redundancy pay in the current series of XpertHR’s Topic of the Week (subscription required). In the first article in the series, Elizabeth Stevens of Steeles (Law) LLP provides an overview of the qualifying rules. Future articles will look at how statutory redundancy pay is calculated and there will be a couple of case studies.

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