The maximum number of years of employment that can be taken into account is 20. The maximum week’s pay that can be taken into account is £475 (from 6 April 2015). This figure increases in line with the Retail Prices Index (RPI) under the automatic indexation provisions of the Employment Relations Act 1999. As a consequence of s.22 of the Enterprise and Regulatory Reform Act 2013, from 2014 onwards, the annual adjustment will take effect from 6 April, as opposed to 1 February as was previously the case.
The maximum payment that an employee can therefore receive as a statutory redundancy payment is £14,250 (20 years’ continuous employment, all accrued while the employee was aged 41 or over, ie 20 x 1.5 x £475 = £14,250