Redundancy Pay
Staff with 2 or more years of service are entitled to a redundancy payment if they are made redundant from UCL.
Statutory redundancy pay
The legal minimum payment is called statutory redundancy pay. Statutory redundancy pay must be paid if an employee has been continuously employed for at least 2 years. UCL’s enhanced redundancy package (below) is based on statutory redundancy.
Statutory redundancy payments are calculated according to: length of service (up to a maximum of 20 years), age, and weekly pay, on which there is an upper limit or “cap” (£719 at the time of writing). For most UCL staff, who did not begin work until 21, employees are eligible for 1 week’s pay (up to the statutory cap) for each complete year of service up to and including the age of 40, and 1.5 week’s pay for each year of employment thereafter. (This calculation is performed by working back from the end of contract.)
Note. If your weekly pay varies from week to week, the ‘weekly pay figure’ is based on all pay – including, where relevant, multiple payments, allowances and bonuses – that you earned per week on the contract over the 12 weeks before the day you got your redundancy notice.
In summary, you should receive:
- one and half week’s pay for each full year you were 41 or older
- 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
Length of service is capped at 20 years.
HMG statutory redundancy calculator
Enhanced redundancy pay
Enhanced Redundancy pay is payable to all staff made compulsorily redundant from UCL with 5 or more years service.
- The weekly pay limit (cap) is removed and the calculation is based on the full weekly pay.
- For 10 years of service or more, the total number of week’s pay due is doubled.