How Does a Redundancy Calculator Work?


Quick Answer

A redundancy calculator uses age, weekly pay and number of years on the job to determine how much redundancy pay is due to workers when employers in the United Kingdom reduce their workforces by dismissing employees, notes Gov.uk. Workers generally only qualify for redundancy pay if they have worked for their employers for at least two years.

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How Does a Redundancy Calculator Work?
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Full Answer

A redundancy calculator determines how much pay workers receive. The values are half a week's pay for each full year of service when the employee was under the age of 22, one week's pay for each year of service between the ages of 22 and 41, and one and a half weeks' pay for each full year of service at ages 41 and older, states Gov.uk. The U.K. caps length of service at 20 years, weekly pay at 475 pounds and maximum payout at 14,250 pounds, as of 2015.

Companies must select people for redundancy based on work aspects, such as experience and skill level, rather than on demographics, such as age, race or disability, states Gov.uk. Workers may not receive redundancy pay if they were offered suitable alternative work or are crown servants, members of the armed forces or apprentices who did not become employees after their training periods. In the U.K., employees in danger of redundancy are entitled to notice periods, consultations with employers, options to move into other jobs and time off to find new jobs.

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