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ACAS redundancy calculator

Here are just a few notes about the ACAS redundancy calculator and how it all works.

ACAS redundancy calculator and payments

Employees may be entitled to redundancy payments if they have been continuously employed for at least two years and are dismissed due to one of the following possible reasons for redundancy:

  • Closure of a business;
  • Closure of the employee’s workplace; or
  • A diminishing need for employees to do the available work.

The ACAS redundancy calculator for statutory redundancy pay is:

  • For each full year of service between ages 17 and 21: half a week’s pay;
  • For each full year of service between ages 22 and 40: one week’s pay; and
  • For each full year of service from age 41 and over: one and a half weeks’ pay.

The maximum service that can be taken into account is 20 years, and the maximum payment is 30 weeks’ pay. The statutory redundancy payment is capped at £450 a week. Any dispute about whether a redundancy payment is due or its size can be determined by an employment tribunal. Since 29 July 2013, all employment tribunals and employment appeal tribunals are liable to pay a fee or an application for fee remission. Further information is available from the Ministry of Justice — Employment Tribunal guidance.

Cash flow problems

If you are an employer and have cash flow problems so serious that making the redundancy payment would put the future of your business at serious risk, the Redundancy Payments Service (RPS) can arrange to pay the employee directly from the National Insurance Fund. If you are insolvent, the RPS makes the payment and the debt is recovered from the assets of your business.

ACAS redundancy calculator and required notice

Employees who are selected for redundancy must be given a notice period before their employment ends. The statutory notice periods are:

  • At least one week’s notice if employed between one month and two years;
  • One weeks notice for each year of employment between two years and 12 years; and
  • 12 weeks’ notice for someone who has been employed for 12 or more years.

For more information about this, or indeed anything else, please get in touch with us here at Accident Advice Helpline, particularly if you feel that you are being made redundant because of an accident has made it difficult for you to perform your regular duties. Our advice is always free and without obligation. Our freephone number is 0800 689 5659.