Weekly Pay calculation for Statutory Redundancy

fcjf

My wife's business is closing down, making her 4 staff redundant in the process, due to being given notice to vacate the premises she operates her business from. The employment termination date for the staff will be 23rd April, 2016. Two of the staff are entitled to statutory redundancy. They are both paid £7.07 per hour presently however this will be increased in April to £7.20 in line with the increased NMW, increasing their weekly pay. The staff are due 12 and 16 weeks' pay as redundancy. Given that they will only have been on the increased weekly wage for 3 weeks does the 12 and 16 weeks pay redundancy calculation have to be based on the higher weekly wage or can the weekly pay be averaged over the previous 8 weeks even though their wages are not variable?

getmore4less

The amount of weekly pay is determined by the employment act.

http://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II

it is the pay on the calculation date for non variable hours/pay

calculation date for redundancy is probably in Section 226 but you need to refer to the redundancy section to work out which bit applies. .

if there was a case to average it is 12 quailfying weeks not 8.
(There may be some NMW adjustments but I have never seen any yet)

fcjf

Excellent, thank you. Looks like the calculation date is the day immediately preceding the first day of the notice period which clears up the uncertainty.

getmore4less

Double check that I don't think you followed the links properly

the reason comes under section 162 and that refers back to 145 for the relevant date.

145 2a is probably relevant in this case.

That is also the section that determine the date for relevant service not the notice date.

getmore4less

Seems a lot of trouble to go to over £2.08*hours worked per week.

DaveyJacks

getmore4less wrote: »

Seems a lot of trouble to go to over £2.08*hours worked per week.

I was thinking the same thing.

Being at the wrong end of a redundance and being offered the bare bones is a very bitter experience after many years of very loyal service.

Perhaps consider this and pay the ever so slightly enhanced rate just to show something over the absolute minimum.