Statutory redundancy payments are commonplace in the united kingdom. Whenever a worker with more than two years of continuing service is created redundant they normally are eligible to get a statutory amount of compensation.

In order to claim a statutory redundancy payment an employee's occupation should have ended due to redundancy. In general terms there are three scenarios which are classed as redundancy. The obvious of these is the closure of the entire business where the employee works. The second reason is the closure of the work location that the employee is based at. The 3rd is really a reduced need for the kind of work that the employee undertakes.

Statutory redundancy payments are only offered to employees that have been in constant work for at least two years. Employees with under two years service may still possess a contractual entitlement to redundancy pay determined by their contract of employment. It is important to observe that even employees under fixed term contracts have entitlement to statutory redundancy pay if their contract is not renewed.

There are certain classes of employee that do not qualify for statutory redundancy payments. Among them are apprentices whose contracts end at the end of their period of apprenticeship. Additional classes of employee are share fishermen plus some domestic servants.

Statutory redundancy payments may also be claimed by workers who are let go or positioned on short-time working. Claims may be made in which the lay-off or short time working has lasted more than a month or a lot more than 6 weeks in a thirteen week period.

When undertaking a statutory redundancy pay calculation there are certain elements that require to be taken into consideration. The actual calculation itself works by using the employees weekly pay. Today's maximum given to the weekly pay is three hundred and eighty pounds. The employee accrues payments based upon their overall length of continuous work. For each yr an employee works under the age of twenty-two the employee obtains half one weeks pay per year. Over the age of twenty two but below forty one an employee obtains one weeks pay per year and over forty one they get one and a half weeks pay per year.

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