BrightPay does not currently include a built-in redundancy payment calculator. Redundancy pay is a statutory entitlement in the UK, and the calculation is based on the employee’s age, length of service, and weekly pay (subject to a statutory cap). 

 

While BrightPay can process redundancy payments as part of payroll, you will need to calculate the redundancy amount separately and then enter it as an additional payment or termination payment in the software.

 

To calculate statutory redundancy pay, you can use the official UK government redundancy pay calculator, which is available here:  

 

 

Once you have calculated the redundancy payment, you can add it to the employee’s final payslip in BrightPay as an additional payment. 

 

If you need to process a leaver and include redundancy pay in their final pay, you can follow the steps here:  

 

 

 

Please note: In BrightPay the Addition type to use is called 'Termination Award' and not 'Redundancy'. This addition type has been pre-set with the correct rules with regards to the up to £30,000 payment.

If the redundancy / termination payment is higher than £30,000, you can enter the whole figure as the termination award and BrightPay will calculate correctly (£30,000 no PAYE or NIC, but apply the correct rates on anything higher than this amount)