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Calculating
Statutory Redundance Pay

To be eligible for a statutory redundancy payment, there are of course pre-conditions. Generally, the employee must have been continuously employed by the Employer for a period of two years ending with the date the notice of termination expired, where no notice is given – the date of dismissal or resignation or the date of expiry of fixed term that is not renewed.

Employees may also be excluded from claiming a statutory redundancy payment if they have unreasonably refused an offer of alternative employment (see above), hands in notice before the obligatory period of notice and therefore fails to work during their notice period as required by the employer, committing gross misconduct giving rise for the employer to dismiss the employee or if an employee contracts out of the right to such a payment under a compromise/conciliated agreement or collective contracting out.

Workers such as the self-employed and independent contractors are generally excluded from the entitlement to a statutory redundancy pay. Agency workers are also generally excluded unless they are deemed to be working under a contract of employment. Read more

 


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