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Employment (Jersey) Law 2003: Law drafting instructions to set maximum value of a week's pay - calculation of redundancy payment

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.

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A decision made 20 September 2011 regarding:

Decision Reference: MD-S-2011- 0072

Decision Summary Title :

Redundancy Pay Order Law Drafting

Date of Decision Summary:

19 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 Pay Order Law Drafting

Date of Written Report:

19 September 2011

Written Report Author:

Policy Principal

Written Report :

Public or Exempt?

Public

Subject: Law Drafting instructions – Order under the Employment (Jersey) Law 2003.

Decision(s): The Minister requested the drafting of an Order to set a figure for the maximum value of a week’s pay for the purpose of calculating a redundancy payment.

Reason(s) for Decision: The current maximum value of a week’s pay is set by reference to the mean average earnings figure that was released by the States of Jersey Statistics Unit in August 2010; £630. However, in August 2011, in addition to the mean average weekly earnings figure, the Statistics Unit released a median average weekly earnings figure. This brings unintended uncertainty as to which figure applies for the purpose of calculating a redundancy payment. Article 60C of the Employment Law permits the Minister to make an Order to set an amount of weekly earnings. An Order must therefore be made to reflect the policy intent that the mean average earnings figure is the amount that will apply. The maximum value of a week’s pay for the purpose of calculating a redundancy payment will increase to £650 for any redundant employee whose effective date of termination of employment is 24 September 2011 or later.

Resource Implications: There are no financial or manpower implications of the law drafting instructions.

Action required: Policy Principal to submit drafting instructions to the Law Draftsman’s Office.

Signature:

 

 

Position:

 

 

Date Signed:

 

Date of Decision (If different from Date Signed):

 

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