Calculating a week's pay
Calculating a week's pay

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Calculating a week's pay
  • The calculation date
  • What pay includes
  • Type of hours and payment structure

The concept of ‘a week’s pay’, calculated in accordance with sections 220–229 of the Employment Rights Act 1996 (ERA 1996), is important for a number of statutory employment rights, including:

  1. the statutory right to pay during a notice period—see Practice Note: Statutory minimum notice—Employee rights during the notice period

  2. calculation of the basic award or an additional award for failure to comply with an order for reinstatement or re-engagement in unfair dismissal cases—see Practice Notes: The basic award—Calculation, Reinstatement—Second stage reinstatement hearing and Re-engagement—Second stage re-engagement hearing

  3. calculation of the statutory maximum compensatory award for unfair dismissal (although not for assessing the amount of the compensatory award itself—see Practice Note: The unfair dismissal compensatory award—Statutory maximum

  4. calculation of a statutory redundancy payment—see Practice Note: Entitlement to statutory redundancy payment—Calculation

  5. calculation of an award for failure to provide written reasons for dismissal—see Practice Note: Written statement of reasons for dismissal—Remedy

  6. calculation of a protective award for failure to comply with the statutory information and consultation requirements on a collective redundancy—see Practice Note: Protective awards—The amount of a protective award

  7. calculation of an award for failure to inform and consult on a TUPE transfer—see Practice Note: TUPE—information and consultation—Failure to inform and consult, under the heading ‘Remedies for failure to inform and/or consult’

  8. calculation of statutory holiday pay under the Working Time Regulations

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