Suspension of IPO due to reduced hours

Bnjracing

Hi all. Confused as to the 36 payments rule on IPO. Currently setting up IPO with OR of £95 each. This means they must have decided we have £315 disposable? Employer is reviewing his options at the moment regarding hours etc and possible redundancy. Possibility is that he will reduce by another day per week. This would reduce monthly income by £160 ish meaning that no IPO would be set up. QUESTION : Should we negotiate with OR regarding the IPO before it is set up or what happens if IPO is set up and then income reduces. If IPO is suspended do you (1) just wait until the original term expires i.e 36 months from inception; or (2) does the IPO start again for the remaining payments once you are back on disposable income i.e. say month 1 to when suspended : suspension time : remaining payments to total 36 payments; this could then make the IPO run for years and years.

peachyprice

You have to set it up as your income is now, but when it changes you can have it altered.

Once it's started it's 36 months regardless if it been suspended, so the suspended months with no payments count towards the 36.

HTH

Bnjracing

Thanks - I was unsure of the implications regarding suspension. Boss is apparently making his mind up this week about hours etc. and IPO agreement letter is due in at the end of the week. If he reduces OR has said they would rejig the IPO this could mean one not being set up.

dalip

You have a PM;)