Letter of Explanation (Calculating Statutory Redundancy Pay)

The Letter of Explanation (Calculating Statutory Redundancy Pay) is a legal template designed to guide employers in providing a written explanation to their employees concerning the calculation of statutory redundancy pay in compliance with UK law.

Redundancy pay is a crucial aspect of employment rights, ensuring that employees facing redundancy are adequately compensated for the loss of their job. However, calculating statutory redundancy pay can be complex, involving various factors such as age, length of service, and weekly gross pay.

This template assists employers by providing a clear and detailed explanation to affected employees, outlining the methodology used to calculate their statutory redundancy pay. The letter can be tailored to include the specific details relevant to each employee, providing transparency and minimizing any potential confusion or disputes.

The letter typically includes information on the employee's length of service, the multiplier and the maximum gross weekly pay (subject to statutory limits) used in the calculations, as well as any deductions that may have been made based on specific circumstances. Moreover, it may address any additional considerations or relevant factors that may affect the final redundancy payment.

By providing a comprehensive explanation of the calculation methodology, this template ensures that employers comply with UK employment law requirements, while simultaneously fostering open and clear communication with affected employees. This helps to promote transparency, address any concerns or inquiries the employee may have, and ultimately maintain positive employer-employee relationships during the difficult period of redundancy.