When is an "enhanced redundancy package" not "enhanced"

Kaz101

Hi Folks

Hope there may be some legal eagles out there who may be able to help me with this!

Am an "at risk" employee for redundancy and currently in consultation period. We have received today details of the "Proposed enhanced redundancy package".

I have worked for my employee for 19 years and am 48 years old. For the first 9 years I worked full time, for the last 10 years I've worked part time. My part time salary is £12,300 (or £238 per week). Full time employees doing the same job earn £30,000 (£576 per week).

The "Proposed enhanced redundancy package" is one week's pay for each completed year of service. I can see how this would be an enhancement to full time employees (ie their salary being more than the £350 pw statutory redundancy capped salary), but in my case statutory redundancy is in fact more than the proposed enhanced package.

Statutory redundancy would be £5355, enhanced would be 19 x £238, £4522.

Do I just have to take this on the chin or could it be classed as any way discriminatory to part time employees, or could I argue for the 9 years of full time service to be taken into account - ie 9 x full time salary, + 10 years at current part time salary (£238 pw).

Any help gratefully received!

reheat

When I left we were offered two choices, the enhanced offering or the basic one, the latter being identical to the statutory redundancy entitlement. You basically took whichever option benefited you most. Are you sure the enhanced package is your only option, or is there a basic option too? This is something you really should raise and push for as part of the consultation. I would have thought (but we need the legal-eagle input) you have a legal right to the statutory offering if this is more than any other offer ... isn't that what the "statutory" thing means? Maybe your company is taking it as read you can take statutory and just hasn't made it clear? And yes, you should try and get the full-time service to be accounted for. Good luck.

McKneff

have you factored in that redundancy pay for when you are over 41 years
it is 1 and a half weeks pay for each year of service.

Kaz101

Hi

Thanks for your replies. Annie, the £5355 figure I gave is from the BRR calculator on its website, so has been calculated at 1.5 weeks after 41.

Reheat - yes I presume (or hope! ) we can choose the statutory - but my query is really can it be called an "enhanced" package if it's not "enhanced" for everyone!

Any advice over my hope of asking for the 9 years full time salary to be taken into account?

Kaz101

Sorry, Reheat, missed the bit in your last post re pushing to get the 9 years full time service taken into account. Thanks.

pompeyrich

How can statutory be more? The capped rate is just that, a maximum, so if you were on £1,000 a week it would be capped at £350 a week, your £238 wouldn't be raised to £350 though.

chez000

Contractual rights can only be in addition to statutory entitlements, so you shouldnt recieve less than the statutory payment

Is there anything in your contract about what you should expect if made redundant?
are you a member of a trade union, does your workplace have trade union
recognition?

Andy_L

Kaz101 wrote: »

For the first 9 years I worked full time, for the last 10 years I've worked part time. My part time salary is £12,300 (or £238 per week). Full time employees doing the same job earn £30,000 (£576 per week).

The "Proposed enhanced redundancy package" is one week's pay for each completed year of service.

Statutory redundancy would be £5355, enhanced would be 19 x £238, £4522.

How are they calculating part time service, generally each year of part time service is counted as only a fraction of a year service but uses the full time salary. ie you might get 9 years (FT) + 10x0.41 (PT) or 13.1 years *£576, about £7.5k

BlueIsTheColour

Its not automatic that you get £350pw, that is the maximum paid, if you actually earn less than that, the statutory amount is your weekly wage. As far as I am aware it just goes off years of service without an allowance if some were full time, so basically it would 19 * 1.5weeks wages of £238, assuming you have completed 19 years service and not coming up to your 19th year, as it goes off completed years service not part ones.

You would also be entitled to 12 weeks notice pay and any holiday that you had accrued

Kaz101

Thanks for all your replies.

Pompey - statutory payment is more in my case. I've taken the figure from the redundancy payment calculator at berr.gov.uk - 1 weeks wage (238£ pw) x 12 (yrs) + 1.5 weeks wage (£357) x 7 years. The enhanced payment in my case is 1 weeks wage for every year - therefore lower.

I understand that the enhanced package will be better for the full time employees who earn £576 pw, than the statutory redundancy which is capped at £350 pw.

My point is that the "enhanced" package is therefore better for some employees (those on full time wage) but not for others ie those on part time wage, where statutory is better!

Kaz101

Andy, grateful for your reply. That's interesting.

On the paperwork received it states - "salary for a part time employee is a pro-rating of a full time equivalent salary. The redundancy calculation is based on an employee's normal basic salary and will also reflect the pro-rating."

I took that to mean it will be based on my normal basic part time salary - £12,300 or £238 pw. Am I correct?

Or does it mean calculated on the basis you mentioned (which is obviously better!).