# redundancy and commission

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

1. ### mitsubishiGuest

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 StruthFrequent Poster

Posts:
183
(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.