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The following article was published in our article directory on May 22, 2015.
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statutory redundancy payment

Article Category: Legal

Author Name: Steve Jones

STATUTORY REDUNDANCY PAYMENT :
Make sure you get what you deserve.
Even ten years ago, most people stayed in one career for life. If you were a teacher at 22 then you stayed a teacher until you were 60. If you were a lawyer you stayed a lawyer..... and so on.
Things have changed recently. Now research shows that a young person, starting out on their working life is likely to change careers between 5 and 8 times before they retire.
Combine this statistic with the fact that thousands of new businesses are created each year and that many of them fail.
What becomes inevitable?
REDUNDANCY.
At some point in your working life you may well be made redundant. Your services are no longer needed.
There can be a number of reasons for this: there may not be enough work for you to do, the business may relocate or change its focus—anything can happen.
You have a number of rights before an employer can make you redundant. An employer will often give people the chance to leave voluntarily (voluntary redundancy), before forcing people to leave.
Employers have to consult with unions and other worker representatives before telling someone that he's going to be made redundant. Employers also follow certain criteria before selecting workers for statutory redundancy : skills, qualifications, training, experience, attendance, time-keeping, future potential, flexibility and performance are all considered.
If, after this process you're chosen for statutory redundancy then you are entitled to a statutory redundancy payment if you have a permanent contract and have worked for your employer for two years or more.
Sometimes if you've been employed on a Fixed Term Contract for two years or more, which is not renewed because of a redundancy situation you may still get a redundancy payment.
But if you're:
• A member of the armed services, a crown servant
• A merchant seaman
• A policeman
Then you are not entitled to a statutory redundancy payment.
Whoops!
So, how much will you get?
Don't get too excited, it's not going to make you rich.
The maximum is capped at around fourteen thousand pounds and your length of service is capped at twenty years. But the sum is not subject to tax.

You'll receive :
• half a week's pay for each full year you were under 22
• one week's pay for each full year you were 22 or older, but under 41
• one and half week's pay for each full year you were 41 or older
So if you work somewhere between the ages of 18 and 25 you'll get:
4 x ½ weeks pay.
4 x 1 weeks pay.
So 6 weeks pay for working for 8 years!
Not overly generous but better than nothing.
If you do end up being faced with statutory redundancy then make sure you get your statutory redundancy payment.
It'll help you get back on your feet.

Keywords: statutory redundancy payment

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