Redundancy - Statutory Payments
A Week’s Pay •
Redundancy Pay is based on the rate of pay that is in force under an employee’s terms and conditions at the ‘relevant date’. The ‘relevant’ or ‘calculation date’ is usually the date on which minimum notice is required by law. In cases where no notice is given, the calculation date is the last day of employment. Pay awards agreed but not applied will count at the re- graded rate; pay awards pending but not agreed will not count. The rate of pay will include all contractual payments, but overtime earnings are not usually included unless overtime is guaranteed so is contractual. • Where earnings change from week to week as a result of piecework or a productivity bonus, a week’s pay is determined by multiplying the number of hours normally worked in a week by the average hourly earnings over the 12 weeks prior to the ‘calculation date’. • If normal working hours vary due to shift arrangements, and earnings vary, the average hourly earnings are multiplied by the average weekly hours over the 12 weeks prior to the ‘calculation date’. • If there are no fixed working hours, a week’s pay is the average weekly earnings for the 12 weeks prior to the ‘calculation date’. • There is a limit on the week’s pay that is taken into account. The limit is reviewed annually - normally in February but a one off increase was applied in October 2009. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS
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