Paragraph 6 Compensation
(1)
Subject to sub-paragraph (2), employers shall pay to employees dismissed by reason of redundancy compensation calculated in accordance with column 2 in the following table depending on the period in which dismissal takes place as specified in column 1, provided that in no case shall compensation amount to more than the maximum specified in column 3.
| (1) | (2) | (3) |
|---|---|---|
| Amount of compensation | Maximum | |
| Dismissal taking place between 3rd July 1989 and 31st January 1991, inclusive | £5000 plus £2000 for every full year of service | £35,000 |
| Dismissal taking place between 1st February 1991 and 31st July 1992, inclusive | £5000 plus £1000 for every full year of service | £20,000 |
(2)
In the case of employees aged over 62 years and 6 months on dismissal the compensation payable under sub-paragraph (1) above shall be reduced by the percentage amount set out in column 2 of the following table, in relation to an employee whose age on dismissal is set out in column 1 of the table.
| (1) | (2) |
|---|---|
| More than 62 years and 6 months, but not more than 62 years and 9 months | 10% |
| More than 62 years and 9 months, but not more than 63 years | 20% |
| More than 63 years, but not more than 63 years and 3 months | 30% |
| More than 63 years and 3 months, but not more than 63 years and 6 months | 40% |
| More than 63 years and 6 months, but not more than 63 years and 9 months | 50% |
| More than 63 years and 9 months, but not more than 64 years | 60% |
| More than 64 years, but not more than 64 years and 3 months | 70% |
| More than 64 years and 3 months, but not more than 64 years and 6 months | 80% |
| More than 64 years and 6 months, but not more than 65 years. | 90% |