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9609 · 2.1.4

Redundancy and dismissal — practice questions

Practice and worked examples for 9609 Redundancy and dismissal. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

Manufacturing firm automates a production line; 40 operatives' roles removed. Analyse HR issues beyond redundancy payments.

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Process: Consult unions/staff; fair selection criteria (not discriminatory); notice and retraining offers where possible.

Survivors: Remaining staff may fear further cuts — communication from leadership essential; 2.1.5 welfare and 2.2 motivation needed.

Reputation: Mass redundancy hurts employer brand — harder future recruitment (2.1.3).

Alternatives: Redeploy to quality control or logistics if skills transferable — reduces social and legal risk.

Worked example 2

A UK-based company, 'Innovate Ltd', is making an employee redundant. The employee is 45 years old, has 12 years of continuous service, and earns a weekly salary of £850. Calculate the statutory redundancy payment the employee is entitled to, assuming the statutory weekly pay cap is £700 and the maximum number of years' service that can be counted is 20.

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The calculation for statutory redundancy pay in the UK is based on the employee's age, length of service, and weekly pay (up to a statutory limit).

Step 1: Determine the applicable weekly pay for the calculation. The employee's actual weekly pay is £850, but the statutory cap is £700. Therefore, the calculation must use the capped amount.

  • Applicable Weekly Pay = £700

Step 2: Calculate the number of weeks' pay based on age and service. The service is broken down into age brackets for each completed year of service:

  • Years of service aged 41 and over: The employee has 4 years of service in this bracket (from age 41 to 44). The multiplier is 1.5.
    • 4years×1.5=6weeks4 years \times 1.5 = 6 weeks
  • Years of service aged 22 to 40: The employee has 8 years of service in this bracket (from age 33 to 40). The multiplier is 1.0.
    • 8years×1.0=8weeks8 years \times 1.0 = 8 weeks
  • Total entitlement in weeks: 6weeks+8weeks=14weeks6 weeks + 8 weeks = 14 weeks.

Step 3: Calculate the final statutory redundancy payment. Multiply the total weeks' entitlement by the capped weekly pay.

  • Total Payment = Total Weeks' Entitlement × Capped Weekly Pay
  • 14weeks×£700=£9,80014 weeks \times £700 = £9,800

Final Answer: The employee is entitled to a statutory redundancy payment of £9,800.

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