Redundant - What am I entitled to? Notice/holidays?

Lucy5206

Hi,
Last week I was made redundant from a job I had been working in for the last 8 months. I was called into a meeting and told it was the last day I would be working. I was given a letter that outlined the reasons I was being made redundant and that due to this I would receive a "severance package" of 2 weeks pay and any holidays that I am owed (5 days pro rata)

I have since checked my contract with the company and its says "Termination of contract may be given by the company on providing the employee 1 month written notice".

I contacted my company and asked for clarification on what my final pay would be. I asked for confirmation that I would receive 30 days paid notice, 2 weeks "severance pay" and my holidays owed. My old boss replied saying the 1 month clause in the contract does not apply to redundancies (although I am unsure what other situation would be classed as termination of contract), but he was willing to offer 1 months pay instead of my "severance package" of 2 weeks pay and holidays.

While I am pretty sure am I entitled to my 30 days notice, surely any holidays owed should be paid on top of this? Am I legally entitled to this, let alone the 2 weeks severance pay on top if this is stated in my redundancy letter?

Any help is greatly appreciated!

Horace

2 weeks money is reasonable - you are entitled to one week's pay for every year that you have worked there and you say yourself you have been there 8 months. You also wouldnt get your full holiday entitlement basically because of the time you have been there plus you may have already taken some holiday.

Is it only you that has been made redundant or are there others?

Ideally, they should give you one month's notice of redundancy but as you are relatively new they can get rid of you at any time during your first year of employment. These are troubling times and there are people on here who have received less notice than you - some only getting one hour's notice.

A termination of contract is slightly different to being made redundant - termination of contract is basically when you have been sacked and the post remains, however, being made redundant means that the post you were in has been made redundant and as there are no suitable jobs for you, you have to leave.

Ring up your jobcentre tomorrow and make an appointment and see if you can sign on.

LittleVoice

Horace wrote: »

A termination of contract is slightly different to being made redundant - termination of contract is basically when you have been sacked and the post remains, however, being made redundant means that the post you were in has been made redundant and as there are no suitable jobs for you, you have to leave.

Leaving because of redundancy means the employment contract is terminated. This is a fair grounds for dismissal. The person is dismissed. The contract is terminated.

Pete111

I disagree with the other posters .

1) Your notice period is contractual and should be payable in any termination situation barring gross misconduct. Redundancy is a termination. See link below.

2) Your company probably do owe you the holidays you have accrued but not taken on top - check your contract/policy on holidays. Even isf this is not explicitly mentioned it is common practice to pay this out and you should push for it

3) Even though your right to redundancy pay (severence) is very limited due to your short length of service, your company have not followed any sort of redundancy process which is rather silly of them - you should use this fact to push for your notice + holidays (at the very least). Check out this website:

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_10029836

P

getmore4less

Definately need to get paid for the notice.

All benifits that are due also should eitheer continue or get compensated so that would be contractual holidays and any company pension contributions, plus any thing else.

neas

the notice period you would usually be expected to work. Redudancy payout is 1 week per year you've worked there... so i'd guess you'd be owed about 3 days worth of 'redudancy' pay... but you could work there a further 1 month (and get paid).

Frozenace

I only got the notice period paid, but it's tax free... although it's harder, because you exhaust your finances faster...

SlyOne_2

neas wrote: »

the notice period you would usually be expected to work. Redudancy payout is 1 week per year you've worked there... so i'd guess you'd be owed about 3 days worth of 'redudancy' pay... but you could work there a further 1 month (and get paid).

I don't think you're entitled to any statutory redundancy pay unless you've been with the company at least 2 years. Thereafter, you're entitled to 1 week's redundancy pay per year worked. This relates to statutory redundancy pay only, nothing to do with payment in lieu of notice or enhanced redundancy packages some employers provide.

LittleVoice

neas wrote: »

. . .. Redudancy payout is 1 week per year you've worked there... so i'd guess you'd be owed about 3 days worth of 'redudancy' pay. . .

Basically correct regarding 1 week's pay for each year of service (though depends on age of employee) - however, as others have pointed out, the statutory scheme only applies to workers with at least two completed years of service.

Eight months' service means no entitlement whatsoever to statutory redundancy pay. It is not pro rated. What is being offered to the OP seems to be the company's own scheme.

LittleVoice

Frozenace wrote: »

I only got the notice period paid, but it's tax free... although it's harder, because you exhaust your finances faster...

The tax free nature of the payment must have been because there was no contractual right for the employer to pay in place of giving proper notice.

savingholmes

Pete111 wrote: »

I disagree with the other posters .

1) Your notice period is contractual and should be payable in any termination situation barring gross misconduct. Redundancy is a termination. See link below.

2) Your company probably do owe you the holidays you have accrued but not taken on top - check your contract/policy on holidays. Even isf this is not explicitly mentioned it is common practice to pay this out and you should push for it

3) Even though your right to redundancy pay (severence) is very limited due to your short length of service, your company have not followed any sort of redundancy process which is rather silly of them - you should use this fact to push for your notice + holidays (at the very least). Check out this website:

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_10029836

P

Pete's answer is legally correct - I would follow this one OP!