Buddy says: Yes, from the 1 October 2006 the lower age limit of 18 and the upper age limit of 65 for redundancy payments will be removed due to the Employment Equality (Age) Regulations coming into force.

Employer information:From October 2006, the statutory redundancy payment will be calculated as follows:

• Up to the age of 21- 0.5 week's pay for each completed year of service
• 22-40 years of age- 1 week's pay for each completed year of service
• 41+ years of age- 1.5 week's pay for each completed year of service.

A week's pay is capped at £290 and the number of years service is capped at 20 with a minimum of 2 years service being required before any entitlement is triggered.

For example, a 35 year old employee who has 10 years service and whose weekly pay is £250 will be entitled to 10 weeks redundancy pay at £250 (£2,500)

Alternatively, a 66 year old employee with 22 years service and a weekly pay sum of £320 will be entitled to 30 weeks redundancy pay (20 (service cap) x 1.5 (as over 41)) at £290 (week's pay cap). Therefore, the employee will be entitled to the maximum of £8,700 under the statutory scheme.

The dti website has provided an online redundancy calculator for those facing redundancy to coincide with the new changes, see http://www.dti.gov.uk/employment/employment-legislation/employment-guidance/page33157.html