Redundancy pay calculators are incredibly useful for anyone going through the redundancy process, whether it’s from an employee or employer perspective.
A redundancy arrangement is where the needs of the employer for a specific type of work have reduced to the point where there’s significantly less required.
That means that fewer staff members are required than in the past, which might mean redundancies are required.
It might also mean that the employer is closing a workplace, perhaps as they look to cut costs or if they’ve been acquired by another business.
The staff who work there will be asked to relocate but if they’re unable to do so, then they may be made redundant.
How Does Redundancy Work?
Any employer that finds themselves in a redundancy situation MUST go through a fair redundancy procedure before making any decisions on redundancy.
That could include applying fair selection criteria, consulting with employees, explaining the reasons, exploring whether there might be alternative options, and allowing employees to appeal against their redundancy.
The reality is this can be a difficult situation for employers to manage.
It’s time-consuming, involves A LOT of administration, and it’s not conducive to good morale.
This is why many employers will offer a settlement agreement as an alternative to going through the process of redundancy.
Calculate Redundancy Pay
When it comes to calculating redundancy pay, it’s important to factor in statutory redundancy pay.
It’s important to note that you can only qualify for statutory redundancy pay if you’ve worked with your current employer for a minimum of two years.
It’s calculated based on age, weekly pay, and the number of years you’ve worked for your employer – your weekly pay is based on the average amount earned over the 12 weeks before you receive your redundancy notice.
The weekly pay calculations should also include any regular overtime that’s provided in your contract and any bonuses and commission.
You might get more than the minimum amount if it specifies otherwise in your contract, although it’s worth noting that if your employer offers you a suitable alternative role and you reject it, you’re may not be eligible for statutory redundancy pay.
Statutory Redundancy Pay Calculator
The best way to check your statutory redundancy pay eligibility is to use the government’s statutory redundancy pay calculator, which is the most accurate calculator.
While redundancy pay can be higher than the legally required minimum amount, there’s no obligation on employers to pay any more than that.
If you’ve got a good relationship with the employer or you feel you could be entitled to a better package, it might be worth asking for a settlement agreement.
It’s unusual for an employee to ask for a settlement agreement but it’s not unheard of, and it may be wise if you’re entering a redundancy situation and you’re looking for a quick resolution.
A settlement agreement is where an employee agrees to waive their right to bring legal action against their employer, usually in exchange for a settlement payment.
This is often used in a redundancy arrangement and it can be a positive outcome for both parties…
Because as an employee, you receive a bigger financial settlement, while the employer can move on and focus on the future of the business.
Avoiding having to go through the redundancy process where one or both parties might become agitated is clearly beneficial.
Redundancy Solicitors Near Me
Redundancy can be a stressful time for anyone, particularly when you don’t know what the outcome will be.
Ensuring that you receive a fair settlement is crucial to the financial future of you and your family – but achieving that might seem daunting.
At Solicitors Near Me, we know how important it is to have expert employment solicitors to help achieve your goals, which is why we connect you with employment solicitors near you for FREE.
Yep, there’s no obligation to proceed with the solicitors we connect you with, and there’s absolutely no cost until you decide to proceed with them.
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