Hi gresgow.

Statutory redundancy is worked out according to your age, length of service and pay. A Google search will lead you to some calculators to work out what it would mean for you.

It would be normal for your Trustee to give you some time to find new employment. Without an income this may require a suspension of payments to the trust deed.

Thanks TDA

I found one of the online calculators and input my details. Obviously some of these calculators differ slightly in their figures and if I were to receive a redundancy payment are there any steadfast rules as to how an IP determines what the statutory amount is. Surely it does not come down to the choice of an online calculator and what figure it produces.

Hi again gresgow.

I wasn't aware that they varied, perhaps some havent been updated for a while. Hopefully Kevin, Mark or Shona can put us right on this question when they next visit.

Hi Gresgow
There should be no variation in calculations. Redundancy pay is calculated as follows -

ÔÇó0.5 weeks pay for each full year of service where your age was under 22

ÔÇó1 weeks pay for each full year of service where your age was 22 or above, but under 41

ÔÇó1.5 weeks pay for each full year of service where your age was 41 or above

*Only full years of service are taken into account when calculating statutory redundancy entitlement
(up to a maximum of 20 years).

** £380 (£400 from 1 February 2011) is the current maximum weekly pay (before tax) when calculating statutory redundancy entitlement.

I copied and pasted this from Direct Gov, was quicker than trying to put it in to my own words.

This is the statutory payment, anything over and above is at your employers discretion.

I hope this helps

Hi gresgow

What can I say...Saabrina has it spot on! Statutory redundancy is laid out in legislation. The only variance that I am aware of is your weekly rate of pay. You will notice that the maximum figure quoted is £380 per week, so if you earn £300 per week, your redundancy will be so many weeks at £300. If however you earn £500 per week, your statutory redundancy will be capped at the £380 per week. Apart from that it is all set out just as Saabrina says. I hope it doesn't come to this for you.

I should also have said that you don't pay tax or NI on redundancy payments, however if you have holiday pay or pay in lieu of notice over and above redundancy payment, that would be subject to normal PAYE and NIC.