20% Paycut

Oldernotwiser

hampsterpoo wrote: »

http://forums.moneysavingexpert.com/showthread.html?t=1374855



"I guess the first question is "on what basis are redundancy payments worked out" - as in are they worked out according to what ones normal salary is or based on the level of salary one has received over the last month or two. If they are based on normal level salary - then that is one thing. If they are based on only the level of salary one has received over the last month or two - then you seriously should not accept a "temporary" salary drop - as that will impact on your redundancy payout.

You'd have to balance this with the money you'd've lost by being unemployed for 2/3 months more.

LittleVoice

Oldernotwiser wrote: »

You'd have to balance this with the money you'd've lost by being unemployed for 2/3 months more.

And, of course, statutory redundancy pay has a cap of £330/week. So if a 20% reduction brought you to no less than that there would be no difference in your entitlement.

ceridwen

LittleVoice wrote: »

And, of course, statutory redundancy pay has a cap of £330/week. So if a 20% reduction brought you to no less than that there would be no difference in your entitlement.

Good point - but that assumes you are only going to get statutory legal minimum pay come redundancy. Is this the case or has the firm got a better deal than that?

LittleVoice

Just to clarify -

I was writing of statutory redundancy pay - and, of course, £330/week does not equate to NMW (unless you are working 57 hours a week).

Ceridwen was referring to whether the company has its own redundancy pay scheme which offers more than the statutory minimum amount. If it does, do get the details - it may even take an average of pay over a year (which would normally be a term to the advantage of the company).