A week's pay under the Employment Rights Act 1996
A Practice note that explains the rules for calculating an employee's 'week's pay' under the Employment Rights Act 1996 (ERA 1996). This statutory calculation is fundamental for determining various employment rights, including statutory redundancy payments, guarantee payments, and basic awards for unfair dismissal. This note provides guidance on the essential first steps of establishing whether an employee has "normal working hours" and, if so, what they are, and identifying which elements of their pay package count as "remuneration". It explores the complex treatment of overtime, bonuses, commission, tips, and employer pension contributions. It also outlines the different calculation methods for employees with variable pay, and those with no normal working hours. Furthermore, this note discusses the statutory cap that limits a week's pay for certain awards and clarifies the modified rules for calculating statutory holiday pay under the Working Time Regulations 1998 (WTR 1998).
Already a Practical Law customer? Sign in
Get access to this document with Practical Law
The value of Practical Law
Deliver results and stay ahead with the help of Practical Law's built-in network of legal experts
As a legal professional, your time is a precious resource. Whether you need insights on a market-leading precedent, help navigating a new topic, how-to guidance on the law with an integrated drafting note, or a checklist to help mitigate risk, you can rely on Practical Law.
Practical Law is the only legal know-how solution supported by a team of over 650 full-time global editors who obsessively monitor the law and create resources to help you navigate the unknown and practise more efficiently.
Learn more about Practical Law
Make the most of your time and resources
Jumpstart your work
Easy-to-use tools deliver a great starting point, so you spend less time searching for templates, building presentations, or delving into unfamiliar areas.
Get how-to guidance
Practical resources provide you with in-depth expert knowledge and insights to help you work more efficiently and make informed decisions confidently.
Rely on worldwide expertise
We offer global and comparative content with thousands of assets covering critical legal topics in more than 100 countries, including weekly updates and daily alerts for EU Law.