Redundancy help please

william.the.bloody

Hello. First time poster and need some help.

I've been made redundant and am currently working my notice but think the firm are trying it on.

The facts are these .....

I'm working for a solicitors partnership which is not being dissolved but is closing.

As the solicitors' partnership cannot go into administration, they have retained us and continued with the redundancy procedure and complied with the terms of our Contracts.

On 16th January, the 30 day consultation began. On 17th February, we got sent letters saying we were now redundant and working our 13 week notice period which would terminate on the 19th May.

We were told during the consultation period that we would not be paid for holidays and had to take them but the letter confirming we were redundant stated that no further holidays would be permitted and we would be paid in lieu!

We have now been told it is likely that we will stop working on the 31st March. However, we will not be paid at that time. We have been told they will continue to pay us our monthly salaries on the 23rd of the month in April and May too. The statutory redundancy pay and any holiday pay accrued will be made with the May payment. The April and May payments will be gross and not subject to tax and National Insurance.

My questions are :-

Can they do this? If we are redundant and cease working on the 31st March, do they have to pay us everything on this date? Can they hold the redundancy payment until May? What action can I take if some April, they decide not to pay me? Are they allowed to not pay tax and NI?

In the Contract, the notice period after the probationary period is 13 weeks. There is no other information regarding notice periods, termination of employment (other than gross misconduct) or redundancy.


Thanks in advance for any advice and guidance.

ceridwen

I would imagine HM Revenue and Customs would have something to say about your employers proposal not to pay tax and NI - if I were you I'd check with them about this. The position will doubtless be that these still have to be paid - but the question is "who is responsible for this? me or the employer".

You do want to be very sure and certain that your NI stamps are paid okay for this period - otherwise it could affect your benefit entitlement now and your State Pension later.

lesley1960

ceridwen wrote: »

I would imagine HM Revenue and Customs would have something to say about your employers proposal not to pay tax and NI - if I were you I'd check with them about this. The position will doubtless be that these still have to be paid - but the question is "who is responsible for this? me or the employer".

You do want to be very sure and certain that your NI stamps are paid okay for this period - otherwise it could affect your benefit entitlement now and your State Pension later.

redundancy pay isnt subject to tax and NI

william.the.bloody

That explains that. Are they allowed to stagger redundancy payments then? I'm not being pedantic or churlish, its just that we've been messed around since April of last year - this is the fourth round of redundancies - and I was looking forward to a clean break.

Penelope_Penguin

william.the.bloody wrote: »

That explains that. Are they allowed to stagger redundancy payments then? I'm not being pedantic or churlish, its just that we've been messed around since April of last year - this is the fourth round of redundancies - and I was looking forward to a clean break.

Statutory redundancy pay should be paid before, or very soon after, you're dismissed. If you have any contractual redundancy pay entitlement, the timing of this payment will be specified in your contract.

Good luck - hope it's all sorted out soon for you.

william.the.bloody

The Contract and terms of employment say nothing about when payments will be made. We've been told that we're not being put on "garden leave" but that our employment will be coming to an end in March. The Contract is the only thing keeping us being paid. I'm worried that they'll say they don't have to pay us after employment terminated in March.

lonestar1

lesley1960 wrote: »

redundancy pay isnt subject to tax and NI

its true you can have upto 30k redundancy tax free but afaik

pay in lieu of notice is taxed as normal as is any pay reeived whilst on gardening leave

william.the.bloody

lonestar1 wrote: »

its true you can have upto 30k redundancy tax free but afaik

pay in lieu of notice is taxed as normal as is any pay reeived whilst on gardening leave

Hi

It isn't gardening leave. The Contract is being terminated at the end of March and the notice payments are being staggered over April and May with the statutory redundancy payment being made with the last payment. My notice period is 13 weeks. They have specifically confirmed it isn't garden leave.

I've very concerned that they'll use the employment ending as a way of getting out of the paying us. I'm also concerned that I'll bit hit with a tax bill!

william.the.bloody

Yes, thats what they're doing. This is the fourth round of redundancies and the previous time, they gave people lump sums when they finished. The business is closing and I was concerned about whether we would receive the payments at all. I'm a bit more reassured about it now but still disappointed as if I had the notice and redundancy payment in a lump sum, I would be able to pay off a couple of debts and start my new low income life with a clean slate!

The only question I now have is that I'm entitled to 3 years statutory redundancy pay - £1,050. They are withholding this until the last "notice" payment at the end of May. As I am redundant at the end of March and my employment and Contract is being ceased then, can I at least insist the redundancy payment is made in March rather than May?

Thanks everyone for your help.