Statutory Payment For Each Year of Service

beethoven_ii

I have just been advised by my employer that due to financial pressures on the business my current role is to be made redundant. I have been offered another position which is in essence the same one with less money, no company vehicle and a loss of status. My question relates to the payment of statutory redundancy for the number of years service. I have been with the company just under 15 years, about 3 weeks short of it. As I'm to be given 12 weeks notice should I be intitled to be paid for 14 or 15 years service on the statutory payment of £350 per week? To avoid any confusion I understand that my notice period is capped at 12 years.

Any guidance would be much appreciated.

Calvinandhobbs

Are you working your notice or being paid in lieu?

beethoven_ii

I have been given a figure for the 12 year's notice so would assume they will not be expecting me to work it. I think it is highly unlikely they will ask me to work my notice because of the position I hold (albeit just for a few more days) because they are fearful I could cause considerable damage to their business if I was to remain in my post during this time. Not that I would but it's a big risk for them to take.

Calvinandhobbs

If you are paid in lieu (if it is processed correctly that is!) then your contract terminates immediately, therefore, you wouldn't have the 15th year service, try and get put on 'gardening leave', ie you get paid, stay as an employee, but don't come into work. Is there a PILON clause in your contract?

beethoven_ii

I am on gardening leave this week for 3 days to consider their offer of the other position. I can't see me accepting the offer and so expect to be dismissed on Monday. When you say my contract terminates immediately am I not bound to the terms of my contract in some way until the notice period expires? I asked my employer if he had any objections to me contacting any of our...their (must get used to that) customers to see if any of them had any opportunities they might be able to offer me and he replied saying that they were strongly opposed to it and would expect me not to contact them for the duration of my notice period. Contacting customers who know me is my best chance to get an immediate alternative and I'm concerned now that I could have to pay back my redundancy entitlement in some capacity if I sought employment with one of their customers.

beethoven_ii

As far as my contract is concerned it was done many years ago and the last time I saw it I recall it being covered in Tippex because there were that many errors in it, probably not worth the paper it was typed on. I work for an old fashioned company who have only just begun in recent years to be mindful of correct procedures and the law on dismissals. Redundancy was unheard of and hardly anyone ever left in the first 10 years I was there.

Calvinandhobbs

beethoven_ii wrote: »

I am on gardening leave this week for 3 days to consider their offer of the other position. I can't see me accepting the offer and so expected to be dismissed on Monday. When you say my contract terminates immediately am I not bound to the terms of my contract in some way until the notice period expires? I asked my employer if he had any objections to me contacting any of our...their (must get used to that) customers to see if any of them had any opportunities they might be able to offer me and he replied saying that they were strongly opposed to it and would expect me not to contact them for the duration of my notice period. Contacting customers who know me is my best chance to get an immediate alternative and I'm concerned now that I could have to pay back my redundancy entitlement in some capacity if I sought employment with one of their customers.

Well, don't want to give loads of advice, as am aware that I can never know all the details, but, I would say to them, "since you don't want me to contact customers, I am assuming I am on Gardening Leave, not PILON, therefore am employed with you til XXX (12 weeks' time)". If there isn't a PILON clause in your contract, then you can still be PILON, but it won't be taxed (if total redundacy is under £30k) as it is essentially compensation for them breaching your contractual/statutory notice period, if it is in contract then you will be taxed, as is a contractual benefit.

As far as contacting customers, check your contract (if you can) is there a confidentiality/restraint on trade clause? If not, they will struggle to sue you for contacting customers (the only way they could get money out of you) if yes, then such clauses are quite difficult to enforce, but def don't make any enquiries till your employment has ended/notice expired

beethoven_ii

Thanks for your advice, it's much appreciated.

LittleVoice

beethoven_ii wrote: »

. . . I have been offered another position which is in essence the same one with less money, no company vehicle and a loss of status. . . . on the statutory payment of £350 per week?

I note you have a company vehicle. Is this provided just for use on company business. If not, it is presumably part of your contractual benefits which are subject to tax/NI. It should therefore either be borne in mind and compensated for if your employment is terminated without notice or remain available to you during your notice period.

Is your salary also £18,200 pa or more (= £350+/week)? If not, it would be only the actual monthly salary/wage rate which would be due as a statutory payment.

beethoven_ii

My salary is well in excess of the £350 limit and my car is provided as part of my salary but I am allowed to drive it for personal use. As you rightly point out though I do pay tax for this and it is classed as part of my income. If I've understood you correctly you are basically saying that the taxable income for the benefit of having the car should be added to my basic wage x 12 for the notice period if they do not allow me to keep the car for the 12 week period?

FireworkCrazy

By the way, a company cannot remove a position and rename it making you do the same work.

Keep an eye on the company when you leave, if someone ends up doing your job in the next six months SUE