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Employment (Redundancy - Maximum Weekly Amount) (Jersey) Order 201-

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 30 September 2011 regarding:

Decision Reference: MD-S-2011- 0075

Decision Summary Title :

Redundancy weekly pay - Make Order

Date of Decision Summary:

29 September 2011

Decision Summary Author:

Policy Principal

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

NA

Written Report

Title :

Redundancy weekly pay - Make Order

Date of Written Report:

29 September 2011

Written Report Author:

Policy Principal

Written Report :

Public or Exempt?

Public

Subject: Employment (Redundancy – Maximum Weekly Amount) (Jersey) Order 201-

Decision(s): The Minister made the Employment (Redundancy – Maximum Weekly Amount) (Jersey) Order 201-.

Reason(s) for Decision: The maximum value of one week’s pay for the purpose of calculating a statutory redundancy payment may be set by Order under Article 60C(3) of the Employment (Jersey) Law 2003. Or, if no Order is in force, the maximum value is the most recent average weekly earnings figure released by the States of Jersey Statistics Unit. In August 2011, the Statistics Unit released two average weekly earnings figures; a median and a mean. In the absence of an Order, this brings unintended uncertainty as to which figure applies for the purpose of calculating a statutory redundancy payment. This Order is made to specify that the maximum value of one week’s pay for the purpose of calculating a redundancy payment is £650 (the mean average weekly earnings figure), with immediate effect.

Resource Implications: There are no financial or manpower implications.

Action required: Policy Principal to notify the Greffier of the States and the Law Draftsman that the Order has been made so that it may be notified to the States, and forward the signed and sealed Order immediately to the States Greffe for publication and archiving.

Signature:

 

 

Position:

Minister

 

Date Signed:

 

Date of Decision (If different from Date Signed):

 

Employment (Redundancy - Maximum Weekly Amount) (Jersey) Order 201-

Employment (Redundancy – Maximum Weekly Amount) (Jersey) Order 201-

 

-          An Order to set the maximum value of a week’s pay for the purpose of calculating a statutory redundancy payment

 

Background

 

The right to receive a redundancy payment for qualifying employees came into force on 1 January 2011.  Article 60C of the Employment (Jersey) Law 2003 provides that the amount of a redundancy payment is calculated as follows:

 

60C    Amount of redundancy payment

 

(1)    The amount of a redundancy payment shall be calculated by allowing one week’s pay for each year of employment during the period, ending with the effective date of termination, in which the employee has been continuously employed.

(2)    For the avoidance of doubt, in this Article ‘year’ means a period of 12 calendar months.

(3)    For the purposes of paragraph (1), the amount of one week’s pay shall not exceed the amount specified by Order under paragraph (4), or, if no such Order is in force on the effective date of termination, the most recent figure for the average weekly earnings published by the States of Jersey Statistics Unit at least one month before the effective date of termination (disregarding any more recent figure published less than a month before the effective date of termination).

(4)    The Minister may, by Order, specify an amount for the purposes of paragraph (3).

 

 

An Order has not previously been made specifying the maximum amount of one week’s pay for the purpose of calculating a statutory redundancy payment. The maximum amount of one week’s pay that applied by default from 1 January 2011 was therefore the average weekly earnings figure of £630, published by the Statistics Unit in June 2010.

 

The Statistics Unit’s June 2011 report on the Index of Average Earnings reported a mean average earnings figure of £650 per week and a median average weekly earnings figure of £520 per week. When the redundancy legislation was prepared in 2010, it was not anticipated that the Statistics Unit would release two average weekly earnings figures and so the legislation does not specify which average weekly earnings figure applies.

 

The Minister intends that there must not be uncertainty or confusion as to which average weekly earnings figure applies for the purpose of calculating a statutory redundancy payment as this may give rise to disputes.

 

This Order is therefore made to specify that the maximum weekly amount will be £650 with immediate effect, which is the mean average weekly earnings figure.

 

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