Calculating Weekly Pay When Working Irregular Hours

OK let me work through my thoughts.

Starting with 162.
Amount of a redundancy payment.
That determines the number of weeks pay based on the relevant date

then move onto 226
Rights on termination.
redundancy is a termination (162)

(5)Where the calculation is for the purposes of section 162, the calculation date is—


(b)if by virtue of subsection (5) of section 145 a date is to be treated for certain purposes as the relevant date which is later than the relevant date as defined by the previous provisions of that section, the relevant date as so defined, and
(c)otherwise, the date specified in subsection (6).

back to S.145.(5)Where—

(a)the contract of employment is terminated by the employer, and

(b)the notice required by section 86 to be given by an employer would, if duly given on the material date, expire on a date later than the relevant date (as defined by the previous provisions of this section),

for the purposes of sections 155, 162(1) and 227(3) the later date is the relevant date.
(6)In subsection (5)(b) “the material date” means—

(a)the date when notice of termination was given by the employer, or

(b)where no notice was given, the date when the contract of employment was terminated by the employer.

Section 86 is about statutory notice, what this bit says is if you don't get at least your statutory notice then you count that to determine the date for calculating the No. of weeks(162.1) and what is known as the "relevant date".

we can now go back to 226.5, where that referes to s226.6

(6)The date referred to in subsections (3)(c) and (5)(c) is the date on which notice would have been given had—
(a)the contract been terminable by notice and been terminated by the employer giving such notice as is required by section 86 to terminate the contract, and
(b)the notice expired on the effective date of termination, or the relevant date,

what that says is the date on which statutory notice would or could have been given to reach the relevant date.

MY conclusion is that the calculation date is the date you would have been given statutory notice(not contractual).

If terminated without notice it becomes the termination date and the relevant date the one used to calculate redundancy is later.

Not sure if that is clear yet.

trying to simplify if you get proper notice and work it(or garden leave) you work back from the end date by the statutory notice to get the calculations date.

If you get PILON(full or part) it gets a bit more complicated.

Statutory notice is 1 week per year on the date it is given so can be less than the years of service for redundancy.

once you have the calculation date you can then work back further to get the pay due, that starts at s.220.