SRP 12 Week Reference Period (for average pay calc). What you were paid? Or what you worked?

Tunstallstoven

Hi all

I'm trying to wrap my head around various aspects of my statutory redundancy and there's one bit that I can't get an answer on.  My shifts and pay vary, so I understand a 12 week reference period will be determined, and the earnings from that period used to calculate an average.  What I don't know is whether the 12 week period is used to look at:

- Remuneration.  The actual money received regardless of when the work for that money was done.  
- Work Done.  The actual work done regardless of when payment for that work was given.  

Most articles simply say money "earned" in the 12 weeks, and - to my mind at least - "earned" could fit both of those.   

I hope that makes sense!  Just in case it only makes sense to me, a quick example... 

My reference period is 01/01/25 to 25/03/25.  I did a shift on 28/12/24, payment for which was made on 18/01/25.  What happens? 

At the other end (using the same reference period), I did a shift on 20/03/25, payment for which was made on 04/04/25.  What happens? 

Any help to get clarity on this would be fantastic and very much appreciated. 

Many thanks   

FlorayG

It's based on the hours worked in the period - the times period in which you earned the money. When it was paid to you isn't relevant, because it was already allocated to you

Tunstallstoven

Great, thanks for that.  I wasn't sure if it worked like you suggest, or works like tax (insomuch as the relevant tax year is when the money is received, not when the hours were worked or interested on savings earned, etc.) 

As mentioned, everyone just says "earned".  The only article I found that didn't was this one, which - unhelpfully - suggests the opposite to you:
https://www.wrigleys.co.uk/news/employment-hr/calculating-redundancy-payments-for-employees-who-have-been-furloughed-/

“The weekly pay is the average of the total remuneration in those weeks, divided by 12.”

The article is about furlough redundancy so I guess rules might have been different for that?  or else they might have simply just got it wrong!  

Thanks again
 

Jaybee_16

Redundancy pay entitlement for flexible working employees

If your employees work irregular hours or shifts, their redundancy pay entitlement is different. You must work out the average number of hours over the last 12 weeks and use that to calculate their average weekly pay.

https://www.breathehr.com/en-gb/blog/topic/business-process/making-staff-redundant-redundancy-pay-and-entitlement

Tunstallstoven

Hi

Thanks for all the replies and sorry for the delay - it's all got a bit much to be honest!  

OK, so that makes sense RE the above two posts (thanks).  But some other articles and some other advice I've got still suggests it is based on pay in the 12 week period, so I'm still feeling uncertain.  

Also, I've come across the official guidance/law and I *think* it applies to my situation.  But then even within that I'm not sure what type of worker I am/was and therefore which part(s) apply to me:

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

My work was as follows:

- I did 60 hours per 4 weeks.  This could be split up into any shifts of any length at any time.  For example, in a four week period I might do several shifts in a one week but then none in another.

- I also did sleep overs, and for each sleep over I did an additional ten hours of day waking hours.  For the sleep itself I was paid a single sum.  For the additional ten hours per sleep over, I was paid my normal hourly pay.  These were also sporadic.  I might do quite a few in one four week period, and then none in another.  

- My contract is not particularly clear or accurate with regards any of this, and so I'm not sure which is most relevant - the contract or the practice.  

As well as using the above to work out what kind of "worker" I am and therefore what applies in my case, I also don't know how to treat weeks where I did not work (because I did the hours for that week in a different week), and weeks where I was on annual leave.  Some of the stuff I've read suggests they're to be included in the 12 week reference period, while others say they should be discounted and you go back another week accordingly until you have a 12 week period.  

Sorry for the lengthy post.  Any help would be fantastic and most appreciated.  

Many thanks