I've gone through the processes and selected redundant employees - what do I do next? In short, an employee who has worked for you for over two years is entitled to a redundancy payment. Redundancy payments are calculated on the following basis:

The most recent 20 years' service is taken into account and from 1st October 2009 a week's pay is capped at £380 and so the maximum statutory redundancy payment is £11,400 Victoria Wright, head of employment law at specialist law firm, stevensdrake, said: "In addition to the statutory requirements, there may be a contractual right to an enhanced redundancy payment and some employers offer a higher payment as a gesture of goodwill." Victoria added: "You are obliged to provide your employees with a written statement highlighting the amount and showing how the redundancy payment has been calculated. A fine can be imposed if this is not provided. You must decide whether the employee will work out their notice period or be paid in lieu. The same applies to accrued holidays - will you pay in lieu? Giving consideration for the position the employee now finds themselves in, once under notice of redundancy employees are entitled to a reasonable amount of paid time off to look for work or to make arrangements for training for future employment. "I hope it goes without saying, but there needs to have been a genuine redundancy situation and you must have followed the proper procedures for the dismissal to be considered fair. Otherwise, you could end up having to defend employment tribunal claims. The maximum compensation for unfair dismissal is now £77,600.00." Published - Otober 2009This article is provided for general information only. Please do not make any decision on the basis of this article alone without taking specific advice from us. stevensdrake will only be responsible for the advice we give which is specific to you.