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

Fash

Hi there - I'm a union rep and I was advised by ACAS that redundancy pay is on the hours you work currently so if you're part-time that's the salary the redundancy payment is calculated on. Even if you had worked for 20 years full-time and only worked part-time over the last year, it is on your current hours not any that's gone before. As Annicave mentioned, you are being compensated for the salarly you would have earned in the future.

Good luck!

Regards

noelphobic

Fash wrote: »

Hi there - I'm a union rep and I was advised by ACAS that redundancy pay is on the hours you work currently so if you're part-time that's the salary the redundancy payment is calculated on. Even if you had worked for 20 years full-time and only worked part-time over the last year, it is on your current hours not any that's gone before. As Annicave mentioned, you are being compensated for the salarly you would have earned in the future.

Good luck!

Regards

Does that also apply in the case of voluntary, rather than compulsory, redundancy?

I have worked for the same firm for 19 years but have only been full time for the last 7 years. I am getting a lower payout than I would have done if I had always been full time, although it is way above the statutory minimum payment.

D1zzy

A related (long winded -sorry) issue
- I have a friend who continued to work part time for the same company after his pension age" so is currently in receipt of his pension and a part time salary.
He has been offered an enhanced redundacy payment (as is the norm in the company ) - although there is no contractual enhanced redundancy scheme.
The formula used for calculating enhanced redundancy pay, essentially deducts his pension from the calculated amount. As his pension is based on his fulltime salary and the calculated amount on his part time salary, the formula (undisclosed but widely known )effectively means that he owes them money :rotfl:

As gesture they have offered him an arbitrary amount - still above statutary pay but much less than he would have receive if the formula had calculated the amount based on his fulltime pay and then prorated it on the basis of his part time work.

Any thoughts welcome on whether this breaks any laws on either age discrimination or discrimination against part time workers - as his payout will essentially be calculated on a different basis from others who are being made redundant. (Actually there is no calculation -just a finger in the air)
Although maybe that's OK as there is no contractual enhanced scheme

Thanks for any info!

getmore4less

you have dug up a very old thread.

will have a back read but for now 3 things come to mind

Was there no break in employment when he retired.
one week off would be enough.

Age related legislation came in and if they failed to modify the policy then there are issues.

Is he over 65


NEW thread is here
http://forums.moneysavingexpert.com/showthread.html?p=30374531#post30374531

all post there please.

dickydonkin

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.

There has been references to the maximum SRP being £350.00 max per every year worked - it is actually £380.00.