Redundancy Policy & Procedures

Welcome to the Redundancy Section for employers, here you'll find lots of interesting and useful information regarding disciplinary procedures.

Redundancy Home
Introduction
Legal Requirements
Information to be supplied to Unions and Employee Representatives
Group Redundancies
Issuing of Notices of Termination
Appeals
Redundancy Calculations

Redundancy Calculations

The calculation is affected by the following variables:

•  Length of service
•  Age of individual taking into consideration the statutory redundancy payment calculation

The period of notice is the individual's contractual notice entitlement.

Compensation for loss of employment due to redundancy is in accordance with statutory entitlement laid down in existing legislation. This may change from time to time.

The DTI makes payment calculations available on it's website

The above payments are limited by the following conditions:

•  Service is defined as current continuous service.
•  For these calculations a weeks pay is defined as guaranteed contractual pay (i.e. basic pay + shift allowance + other permanent allowances). Overtime is excluded.
•  The total redundancy pay should not exceed current annual salary and notice entitlement.

N.B In order to be entitled to a redundancy payment the employee must have been dismissed by reason of redundancy. If there is doubt as to whether the situation is a redundancy situation within the law, line managers must seek advice from HR.

Whilst all employees are expected to comply with the policies in order to minimise the risk of claims against the company and individual employees, they are not contractually binding. The policies will be revised on a regular basis to ensure compliance with UK and European Legislation and best practice.