Member Article

Calculating Statutory Redundancy

By Colin Grimston from Business Link

If there are changes in the way your business operates, or a reduction in your level of business, you may find that the jobs of some of your staff become redundant. When this happens, you need to make sure you act correctly. Employees being made redundant have certain rights, including the right to a written statement of the amount of any redundancy payment and how it was calculated.

To help North East Businesses comply with employment regulations like this, we’ve launched a new online tool called ‘Calculate the statutory redundancy pay due to your employee’. The interactive tool calculates the statutory redundancy payment due and creates a personalised written statement showing the amount of the redundancy pay and how it was calculated.

The payment due to each employee under the statutory redundancy payment scheme is based on the employee’s age; the employee’s amount of continuous service (which must be two years or more to qualify), subject to a maximum of 20 years and the employee’s weekly gross pay - up to a limit of £310. This calculation is based on the statutory scheme and does not apply to employers who offer redundancy payments over the statutory maximum.

This interactive tool uses a short questionnaire to help you comply with the law and avoid fines and prosecution, save money by using your resources more efficiently and improve your business’ competitive edge. It is quick and easy to use, taking only ten minutes to complete and can be saved on your own system or given straight to the employee.

This tool is just one of the features on the website’s newly enhanced ‘employing people’ section, which also includes other tools, advice and guides on equal opportunities, pension schemes, employing different types of workers as well as a broad range of areas of business support.

To provide further information to the region’s businesses, the ‘dismissals, redundancies and other exits’ section of the website helps to ensure the correct procedures are followed when ending a person’s employment. The guides and tools explain the procedure for ending a person’s employment for reasons other than disciplinary action - for example the end of a fixed term or temporary contract, compulsory retirement, reasons due to sickness or absence, and redundancy.

The Business Link website enables you to access key information at the touch of a button 24 hours a day, seven days a week. However, if you would like if you would like to discuss this with one of our team we’re always at end of the phone. Business Link North East’s substantial team of expert brokers operate across the region in local access points and on a mobile basis. For further information about Business Link visit www.businesslinknortheast.co.uk or call 0845 600 9 006.

This was posted in Bdaily's Members' News section by Ruth Mitchell .