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Redundancy payments - final 12 weeks payment affected by unpaid leave days?

5 replies

mechanicalpencil · 21/05/2025 07:09

Good morning
I’ trying to calculate my potential statutory redundancy payment using the gov.uk calculator.
It says it takes the average of the final 12 weeks payment…. What happens if you are ill (no sick pay) or have unpaid leave in the last 12 weeks? Will that affect the payment?
Nobody from our company knows.

OP posts:
AmIHumanOrAmIAYeti · 21/05/2025 07:20

It’s the average of the 12 weeks payments before the day you were notified of the redundancy. Any reduction in pay would impact the average.

eg

(£250 per week x 12)/12 = £250 per week average

((£250 per week x 9) + (£150 x 3))/12 = £225 per week average

Middlechild3 · 21/05/2025 07:21

I don't know but could it be your last 3 months payslips the average is taken from which would vary as includes unpaid days.

MrsPinkCock · 21/05/2025 08:19

If you have fixed working hours which don’t vary, then usually it’s calculated on your usual rate of pay. The unpaid leave or sick leave doesn’t matter in that scenario.

But if you have variable hours or pay, commission etc, it might have to be calculated on average salary, and the unpaid days could reduce the figure.

So it depends on your contract and how you work in practice.

mechanicalpencil · 21/05/2025 12:44

@MrsPinkCock
i have fixed working hours, but was planning a few days unpaid leave in July.

OP posts:
AirborneElephant · 21/05/2025 18:00

Yes, if they are only paying statutory redundancy I believe unpaid leave during the calculation period will reduce it. So if you get your redundancy notice between July to October unpaid leave in July will reduce your payments.

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