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#1
28-05-2009, 11:47 AM
 mitsubishi New User Posts: 1
redundancy and commission

hi just wondering if anyone can help me.... my question is how do i calculate my redundancy entitlements of i had a basic weekly wage and was paid commission several times a year?? is it based on basic or my yearly p60?? and is each year treated seperately??
i have had little work for the last few months and is my extra weeks wage based on this
am really confused about how to calculate it...thanks
#2
28-05-2009, 02:44 PM
 Bill Struth Frequent Poster Posts: 182
Re: redundancy and commission

Quote:
 Originally Posted by mitsubishi hi just wondering if anyone can help me.... my question is how do i calculate my redundancy entitlements of i had a basic weekly wage and was paid commission several times a year?? is it based on basic or my yearly p60?? and is each year treated seperately?? i have had little work for the last few months and is my extra weeks wage based on this am really confused about how to calculate it...thanks
(2) How is the weekly pay of a piece-worker calculated?

A piece worker is defined as an employee whose pay depends on the amount of work he/she carries out i.e. he is paid wholly or partly by piece rates, bonuses or commissions etc related to his output. There is a special formula for calculating this amount, based on his normal weekly working hours, as follows –

(a) The total number of hours worked by the employee in the 26-week period ending 13 weeks before the date of being declared redundant is calculated first. Weeks worked with different employers will be taken into account if the change of employer did not affect the continuity of employment. Any week or weeks during the 26-week period, in which the employee did not work will not be taken into account and the most recent week or weeks counting backwards, before the 26 week period, will be taken into account instead.

(b) You then add up all the pay earned in this 26-week period and adjust it to take into account any late changes in rates of pay which came into operation in the 13 weeks before the employee was declared redundant.

(c) The employee’s average hourly rate of pay is then calculated by simply dividing the total pay as at (b) above by the total number of hours as at (a) above. You then finally establish the weekly pay by multiplying this average hourly rate by the number of normal weekly working hours of the employee at the date on which he was declared redundant (i.e. date of being given notice of redundancy).

(3) Treatment of employees on reduced working hours
When a person is put on reduced working hours by their employer e.g. a three day week, the redundancy entitlement is calculated on the basis of a full week, provided the employee was put on reduced hours within one year (52 weeks) before being made redundant. If they were made redundant after the first year of reduced working hours and if it is clear that the employee fully accepted the reduced working hours as being his/her normal working week, never requesting a return to a full time week, then the employee is deemed to have accepted the reduced hours as his normal week. In this situation the gross pay for redundancy purposes is based on the reduced working hours.