compensation in lieu of redundancy..TUPE

conyermud

Hi, currently 14 of us are going through TUPE proceedings, I am the elected representative of the group. My question is that if some of us accept our companies offer of 'compensation in lieu of redundancy', (some of the group are nearing retirement age and others have no way of getting to our new place of work) how will that affect benefit payment if they then need to sign on?? are they making themselves unavailable for work?? HELP!!!!!

cabbage

HI

If they have enough NI contributions they could claim contribution based JSA which shouldn't take the redundancy pay into account. As a general rule of thumb, they would be looking at the last three years contributions.

Contribution based JSA is paid for six months at which time they would transfer to income based JSA where savings, partners etc all take effect.

Click on the link below for more information.
http://www.adviceguide.org.uk/index/life/benefits/benefits_for_people_looking_for_work.htm#the_two_types_of_jobseekers_allowance

savingholmes

I would ring ACAS on 08457 47 47 47 as I haven't heard of this one... If they can't get to the new place of employment then it is not suitable alternative employment and in my view they should be offered redundancy not compensation in lieu of redundancy

Debt_Free_Chick

savingholmes wrote: »

I would ring ACAS on 08457 47 47 47 as I haven't heard of this one... If they can't get to the new place of employment then it is not suitable alternative employment and in my view they should be offered redundancy not compensation in lieu of redundancy

It's quite common, especially in office/professional roles.

The employee and employer mutually agree to end the contract of employment "for no specific reason". The employer agrees to compensate the employee for breaking the contract and the amount is usually more than the statutory redundancy pay.

All of this is set out in a legal contract - a compromise agreement. The employee has to get independent legal advice on the contract, but the employer pays a fee for this, usually included in the calculation of the compensation.

Debt_Free_Chick

conyermud wrote: »

Hi, currently 14 of us are going through TUPE proceedings, I am the elected representative of the group. My question is that if some of us accept our companies offer of 'compensation in lieu of redundancy', (some of the group are nearing retirement age and others have no way of getting to our new place of work) how will that affect benefit payment if they then need to sign on?? are they making themselves unavailable for work?? HELP!!!!!

It won't affect them in any way different to the effect of redundancy. The amount they receive will probably count as "savings" for any income-related benefit, either way.