Redundancy advice

Barsid

Hi, I am currently on a committee of a charity run preschool, which has had to close due to lack of children attending therefore lack of funds.
We have to pay redundancy to an employee who has been employed for 9 years 7 months, looking at her contract it has not been updated since she joined, her contract is for 2 sessions per week, but in recent years has been working 3 sessions. Obviously hourly pay rate has increased through time. As preschool ran term time only total weeks worked each year was 38.
Can someone advise me of what this employee is entitled to please, as obviously want to ensure employee gets entitlement but funds are very low.
Thanks in advance.

Seanymph

https://www.gov.uk/staff-redundant/redundancy-pay

Barsid

Thanks, do I use hours stated in contract or do I use the hours that the employee has been working last few years ?

soolin

I've moved this to this board as it appears to be a better fit. However, OP I think due to the potentially litigious nature of your question you may need to seek proper paid advice rather than rely on well intentioned advice from strangers on the internet.

getmore4less

Statutory redundancy pay is determined by a "weeks pay" as defined in the employment acts.

there is a cap of £489 on the amount I suspect you won't reach that

service is calculated from date of termination but can be later if there statutory notice is not worked.
given 9y7m it will most likely stay at 9years

the No of weeks due is based on service and age, are they over 42.

there is also the issue with term time of do you only pay when working or spread over 12months how do you do holiday pay and when is the pay year as this can influence the notice pay due, and if paid over 12 months there can be need to adjust the final salary/holiday pay

under some circumstance the notice will need to be paid even if it would have been not worked.


Back to a weeks pay, it will be the current pay and there are rules for calculating it if the hours are variable.
the full act
https://www.legislation.gov.uk/ukpga/1996/18/contents

key bit for a weeks pay
https://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II

The basic rule is the pay for 12 weeks where there is pay so I think you just use the current normal weeks pay for 3 sessions this will be higher than if you you use a full years weekly average.

if they worked 38 weeks they were due 4.6 weeks holiday pay making 42.6 weeks total the difference will be about 12% less if spread out.

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Have you put them on notice(9 weeks or contractual if longer) of redundancy yet?

Barsid

Hi, yes employee has recently been given notice although we are aware is due 9 weeks pay in lieu of notice, thank you for your help, much appreciated.