Is redundancy worked out on contracted hours?

Is redundancy worked out on contracted hours?

If your contract doesn’t set out your ‘normal hours of work’ (how many hours each week you need to work), your weekly pay will be worked out as an average. The average will be based on what you earned in the 12 weeks before you were told you’d be made redundant. This includes any commission you made in that time.

How many hours do you have to work to claim redundancy?

There is no minimum hours requirement to become entitled to this payment, therefore an employee who is employed to work as little as, for example, 2 hours a week for you, is still entitled to statutory redundancy pay.

How is redundancy pay calculated for variable hours?

“Total pay over a 26 week period, 13 weeks before the date of Declaration of Redundancy is divided by total hours worked in that period to get an average hourly rate of pay which is then multiplied by the normal weekly working hours.”

Does an employer have to pay contracted hours?

Unless you have agreed to work fewer hours, for example, by agreeing a shift swap with a colleague, your employer is obliged to give you at least this number of working hours, or to pay you in lieu where your contracted hours are not met.

Is redundancy based on contracted hours or average hours?

Statutory redundancy pay is calculated using a formula that includes the employee’s gross weekly pay, subject to a maximum. A week’s pay is calculated based on the employee’s “normal working hours” in a week or the average working hours in a 12-week period if their hours vary.

Can a company reduce your contracted hours?

If your employer asks you to work fewer hours or take a pay cut, this is a change to your contract of employment. Any change to your contract of employment must be agreed by both you and your employer. If you don’t accept a reduction in your working hours or pay, your employer may decide to make you redundant.

Is redundancy calculated on average pay?

Can my employer change my contracted hours?

An employment contract can only be varied if there is agreement or if the terms allow it. If your contract is clear and says that your employer can make the specific change that they want to make e.g. to vary or reduce your hours, then your employer may be able to make the change without your agreement.

Does contract work count towards redundancy?

In most instances, working under a fixed term contract means the employer must treat you in the same way as a comparable permanent employee, but whether or not you’re entitled to claim redundancy depends on the length of time you’ve worked for that employer. …

How long after redundancy can you claim job seekers allowance?

‘New-style’ contribution-based JSA: This is the main type of JSA generally available to new claimants. To get this, you need to have been paying national insurance for two years, and you can claim for a maximum of 28 weeks.

What happens to my job if I get redundancy?

Redundancy is a form of dismissal from your job. It happens when employers need to reduce their workforce. If you’re being made redundant, you might be eligible for certain things, including: redundancy pay.

How is redundancy pay calculated for a 35 year old employee?

They’re put on flexible furlough on 80% pay for the remaining 15 hours, receiving £8 an hour. When calculating redundancy pay, their wage on flexible furlough must be topped up to 100%. This means they must receive £300 a week redundancy pay. An employee who is 35 has worked for their employer for 6 years.

How is redundancy pay for part time workers a myth?

In other words the longer you have worked (full-time and part-time), the higher your redundancy payment will be. Whilst every care has been taken in compiling this answer, WorkingMums cannot be held responsible for any errors or omissions. This information is not intended to be a substitute for specific legal advice. You already voted!

Do you have to pay redundancy pay during covid-19?

During the coronavirus (COVID-19) pandemic, employees continue to have the same redundancy rights, including redundancy pay. This includes employees who have been on furlough. You should check your employment contracts as they might say you need to pay more than the statutory amount.