Section 162: Amount of a redundancy payment., Employment Rights Act 1996

The amount of a redundancy payment shall be calculated by—

determining the period, ending with the relevant date, during which the employee has been continuously employed,

reckoning backwards from the end of that period the number of years of employment falling within that period, and

allowing the appropriate amount for each of those years of employment.

In subsection (1)(c) "the appropriate amount" means—

one and a half weeks' pay for a year of employment in which the employee was not below the age of forty-one,

one week's pay for a year of employment (not within paragraph (a)) in which he was not below the age of twenty-two, and

half a week's pay for each year of employment not within paragraph (a) or (b).

Where twenty years of employment have been reckoned under subsection (1), no account shall be taken under that subsection of any year of employment earlier than those twenty years.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subsections (1) to (3) apply for the purposes of any provision of this Part by virtue of which an employment tribunal may determine that an employer is liable to pay to an employee—

the whole of the redundancy payment to which the employee would have had a right apart from some other provision, or

such part of the redundancy payment to which the employee would have had a right apart from some other provision as the tribunal thinks fit,

as if any reference to the amount of a redundancy payment were to the amount of the redundancy payment to which the employee would have been entitled apart from that other provision.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 162: Amount of a redundancy payment.

Discussed in

About this text