Q&As

How are statutory redundancy and notice pay calculated for an employee with normal contractual hours of 39 per week but whose hours have been less recently due to illness?

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Published by a ÑÇÖÞÉ«ÇéÍø Employment expert
Published on: 30 May 2017
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Statutory Redundancy pay

A statutory Redundancy payment is calculated by reference to a week’s pay, calculated in the usual way, subject to the statutory cap which, as at May 2017, is £489 per week.

For further information, see our Practice Note: Entitlement to statutory redundancy payment, in particular the main section dealing with Entitlement to statutory redundancy payment—How the payment is calculated.

The method of calculating a week's pay for these purposes is set out in detail in sections 220–229 of the Employment Rights Act 1996 (ERA 1996) and depends upon the type of hours the individual works and the pay structure that applies to them. The statute envisages six basic situations:

  1. •

    employees with fixed working hours who are paid a flat rate for each hour worked

  2. •

    employees with fixed working hours who are paid variable amounts for hours worked

  3. •

    rota workers

  4. •

    employees without regular hours

  5. •

    employees who have

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Jurisdiction(s):
United Kingdom
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Key definition:
Redundancy definition
What does Redundancy mean?

When an employee's role has diminished or disappeared such that it is no longer required by the employer.

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