Redundancy payments

Stephen SimpsonEditor's message: The maximum amount of a week's pay for calculating statutory redundancy pay is currently £475.

Quick reference > Statutory redundancy payments ready reckoner provides an easy-to-follow calculator. Liveflo > Redundancy pay calculator allows you to calculate an employee's statutory redundancy pay based on his or her age, salary and length of service.

If you have an enhanced redundancy scheme, the Equality Act 2010 comes into play. Employers wishing to make enhanced redundancy payments have the three options set out in the Equality Act 2010 to ensure that the payments are not discriminatory on the basis of age (see Quick reference > Enhanced redundancy payments). Worked examples > Enhanced redundancy payments worked examples. You can use our model policy (see Policies and documents > Policy on enhanced redundancy payments) as the basis for explaining to staff what enhanced redundancy payments you offer.

Stephen Simpson, principal employment law editor

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