REDUNDANCY PAY CALCULATION

We deal with claims on behalf of employees relating to employment matters including advising on the redundancy pay calculation. We do not act for employers. Our solicitors are experts in their field and where possible they negotiate settlement failing which they will make application to an Employment Tribunal to resolve any dispute.

You are entitled to redundancy pay if your employment is terminated due to the firm closing down or if a substantial reduction in available work means that your services are no longer necessary provided that you have worked for that firm for at least two years. If your employment is terminated for any other reason, after the relevant minimum period of employment, then you will generally have a viable claim for unfair dismissal where in many instances damages are unlimited. Your employer should give you proper notice or pay in lieu of notice and must follow agreed protocols on selection etc.

Redundancy pay is not taxable and depends on your age, the period of employment and weekly salary. The amount that you will receive is capped to a maximum of £9,300 and is calculated on the basis of continuous service as follows :-

half a week’s pay for each complete year below the age of 22

plus

a full week’s pay for each complete year between the ages of 22 and 40

plus

a week and a half’s pay for each complete year above the age of 41

It is worth noting that there are occasions when a firm will attempt to fob you off with redundancy pay when the truth of the matter is that they have taken a cynical view on termination of your employment and it is cheaper to do it that way rather than to face damages for unfair dismissal which may be an unlimited sum not capped to £9,300. If you believe that you are the victim of one of these scams by your employer you should take urgent legal advice on requesting an order for re-instatement and/or claiming compensation for unfair dismissal in the Employment Tribunal.

If your job disappears due to re-organisation on economic grounds and you employer offers you alternative employment then you may refuse the alternative if it causes serious disruption to your life alternatively you can try the alternative employment for a period of 4 weeks prior to making a decision and if necessary resign and still claim redundancy pay. Legal advice should always be sought in this situation.

Following the termination of employment companies often request their former employee to sign a ‘compromise agreement’ to finalise all issues. It is a legal requirement that an employee receives qualified advice before signing a compromise agreement and most employers will pay most or all legal costs to facilitate this advice.

Our solicitors operate the no win no fee scheme and make no charge whatsoever if the claim is lost. If compensation is recovered on your behalf then costs are charged based on a percentage of the total sum recovered or in the case of a compromise agreement as a fixed sum agreed in advance. If you would like to discuss your potential claim with a specialist lawyer with no charge and with no obligation just use the helpline or complete and send the contact form.