Given the current financial climate, it may not have been the best time for the law to change regarding statutory payments for redundancy. With the economy already suffering an increasing number of job losses week on week, there are fears that this new increase to statutory redundancy payments may result in an even sharper rise in the number of people being made unemployed.
Redundancy pay is calculated on the basis of age and length of service. The number of weeks pay is multiplied by the current statutory rate. The law currently states that an employer is obliged to pay employees up to £330 per week if they are made redundant after two years of continuous service. There are further criteria that are taken into consideration which an employer has a statutory duty to be mindful of.
Employees under the age of 22