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Browse frequently asked questions and answers on key HR issues. Navigate by topic or key word search. View latest additions or suggest a question to the XpertHR editorial team.
The Employment Rights Act 1996 sets out how a redundancy
payment is calculated by determining the period, ending with the date of
termination of employment, during which the employee has been continuously
employed. It then works backwards from the end of that period to calculate the
number of complete years of employment falling within that period. Finally, it
allows the appropriate amount for each of those years of employment. The appropriate amounts are: one and a half weeks' pay (subject to the statutory cap on a week's pay) for each year of employment in which the employee was aged 41 or over; one week's pay for each year of employment in which the employee was aged between 22 and 40; and half a week's pay for each year of employment in which the employee was aged 21 and under.
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