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Ask Employment Law |
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Remember: There is no substitute for legal advice on the actual
situation you find yourself in. The information posted on this site is for
general information only, is based on |
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Question: |
Redundancy: What is my statutory
entitlement if I am made redundant? |
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Answer: |
Basic
statutory entitlement on redundancy is not that generous. What’s more, you
don’t even get a statutory redundancy payment until you’ve been employed for
two years. The statutory redundancy payment is a week’s pay to a maximum of
(at the time of writing £380) x full years worked x 1.5 for years worked over
the age of 41. There’s also a slight variation for years worked under the age
of 21. For
a ‘Ready Reckoner’ see http://www.direct.gov.uk/redundancy.dsb
or do a web search for ‘redundancy ready reckoner’. On top of the statutory redundancy payment, employees are entitled to
statutory notice. Once you’ve got three months service under your belt,
you’re entitled to at least one week’s notice. Statutory entitlement to
notice then accrues at the rate of one week for each full week worked to a
maximum of twelve weeks. Contrary to what a lot of people think, there is no automatic
right to receive a payment in lieu of notice. Of course you may be entitled to receive more notice under your
contract of employment. This is great if you’re being made redundant, but may
not be so good if you’re keen to leave
and take up a lucrative new job as soon as possible elsewhere. A lot of
employers do make a payment in lieu of notice when making staff redundant,
and if they do so, that payment can often be paid free of tax. You may be somewhat unimpressed by your statutory entitlement on being
made redundant. A lot of employers offer enhanced redundancy terms and if
they do so, they’ll probably ask you to sign a compromise agreement and see www.compromise-agreement.org Last
updated: July 2010. |
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Employment
Solicitor Regulated
by the Solicitors Regulation Authority ©
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