Calculation of a week's pay
For the purposes of various rights under the Employment Rights Act 1996, a week's pay is calculated as set out below. This applies to rights such as redundancy payments and unfair dismissal awards.
|Employee's hours||Amount of a week's pay|
|Normal working hours and employee's remuneration does not vary with amount of work done||The amount payable for the week by the employer assuming the employee works for all the normal working hours|
|Normal working hours but employee's remuneration varies with the amount of work done, eg the employee is a piece worker or the employee's remuneration varies by reason of commission||The amount of remuneration for the number of normal working hours in a week calculated at the average hourly rate of remuneration in respect of the previous 12 weeks|
|Normal working hours on days or times that differ so that the remuneration varies according to the incidence of those days or times, eg where certain shifts attract premiums||The amount of remuneration for the average number of weekly working hours at the average hourly rate of remuneration - where the average number of weekly working hours is the total number of normal hours worked in the preceding 12 weeks divided by 12, and the average hourly rate of remuneration is remuneration for the hours worked in the 12-week period divided by the number of hours in that period|
|No normal working hours||The average weekly remuneration for the previous 12 weeks|
Note: The 12-week period ends with the week including the calculation date if this is at the end of the week. Otherwise it ends with the last complete week before the calculation date. Where in any of the relevant 12 weeks no remuneration was payable, an earlier week is taken into account.