Employees who are made redundant and have two years’ continuous employment are entitled to a Statutory Redundancy Payment. The amount of the payment is calculated using a formula based on the employee’s age, length of service and their weekly pay.
We recommend using our statutory redundancy pay calculator (also know as a redundancy ready reckoner) to work out how much statutory redundancy pay you might have to pay.
If you are unsure how to calculate statutory redundancy pay we recommend using our redundancy pay calculator. To use it cross reference the age of the person (down the vertical axis) with their length of service (on the horizontal axis) on the grid. Where the two lines meet will be a number. Multiply the corresponding number by their weekly salary e.g. a person aged 24 with 4 years service will be entitled to 3 times their weekly salary.
For employees aged over 61, the payment will be the same as for those age 61.
If you are considering making redundancies in your business and require support with the redundancy process, we can help. Contact us with your details and we’ll get in touch.
You can also view our answers to some common Redundancy FAQs here.
