Basic amount for redundancy pay entitlement
23 Basic amount for redundancy pay entitlement
The basic amount for a person’s redundancy pay entitlement for his or her employment by an employer is so much of the entitlement as:
is not a cost of the winding up or bankruptcy of the employer; and
does not exceed the total of:
4 weeks’ pay (at the rate relevant to working out that entitlement) for each full year of the person’s service with the employer for which the employer was required to pay redundancy pay by the governing instrument for that employment; and
if that instrument requires payment of redundancy pay for a proportion of a year (less than a full year) of the person’s service with the employer—that proportion of 4 weeks’ pay (at the rate relevant to working out that entitlement).
Sections 25 and 26 may affect the basic amount.
This Act’s bill:Explanatory memorandumSecond reading speech
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