redundancy and commission

Discussion in 'Redundancy, unemployment & jobseekers entitlements' started by mitsubishi, May 28, 2009.

  1. mitsubishi

    mitsubishi Guest

    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. Bill Struth

    Bill Struth Frequent Poster

    (2) How is the weekly pay of a [FONT=Arial,Arial]piece-worker [/FONT]calculated?

    [FONT=Arial,Arial]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 [/FONT][FONT=Arial,Arial]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 – [/FONT]

    [FONT=Arial,Arial](a) The total number of hours worked by the employee in the [/FONT]26-week period ending 13 weeks before the date of being declared redundant [FONT=Arial,Arial]is calculated first. Weeks worked with [/FONT][FONT=Arial,Arial]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 [/FONT][FONT=Arial,Arial]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. [/FONT]

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

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

    (3) Treatment of employees on [FONT=Arial,Arial]reduced working hours [/FONT]
    [FONT=Arial,Arial]When a person is put on [/FONT]reduced working hours [FONT=Arial,Arial]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 [/FONT]within one year (52 weeks) before being made redundant. [FONT=Arial,Arial]If they were made redundant [/FONT]after [FONT=Arial,Arial]the first year [/FONT][FONT=Arial,Arial]of reduced working hours and if it is clear that the employee [/FONT]fully accepted [FONT=Arial,Arial]the reduced working hours as being [/FONT][FONT=Arial,Arial]his/her normal working week, never requesting a return to a [/FONT][FONT=Arial,Arial]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 [/FONT]is based on the reduced working hours.