couple of redundancy queries

mdwork

Hi

couple of quick queries about redundancy regs. Ive been in my job 10 years and been told My role is likely to become redundant and offered voluntary redundancy. obviously Im not going to accept this as it voids ASU and card cover policies. assuming next stage is compulsary redundancy Ive read through what i can find online am confused on a couple of points.
1. my notice period in my contract period is 4 weeks for sacking type offences. Is this the same in the case of redundancy or does it become a week for each year of service i.e. 10 weeks? Will this be Pay in lieu of notice or can I be forced to work it at the employers discretion?
2. my redundancy payment would be 10 weeks pay untaxed. Is this is addition to pay for the notice period (either 4 or 10 weeks) above?

cheers in advance

mdwork

McKneff

redundancy payment is 1 week's pay for each full year of employment, this is untaxed. (1and a half weeks if you are over 41 years of age.)

Notice period is also 1 weeks notice for each full year of employment.
working your notice or not is discretionary by your company, they say whether you have to work your notice period or not.

Payment in lieu of notice tax & Ni is dependant on your contract. under some circumstances it is taken as being compensation for being 'let go'
Hope things go okay for you.

mdwork

McKneff wrote: »

redundancy payment is 1 week's pay for each full year of employment, this is untaxed. (1and a half weeks if you are over 41 years of age.)

Notice period is also 1 weeks notice for each full year of employment.
working your notice or not is discretionary by your company, they say whether you have to work your notice period or not.

Payment in lieu of notice tax & Ni is dependant on your contract. under some circumstances it is taken as being compensation for being 'let go'
Hope things go okay for you.

thanks for that. so the redundancy payment is in addition to the pay for the notice period (whether worked or payed in lieu)?
also im still confused as to the notice period, is it the 4 weeks notice i'd be given if sacked or does it become 1 week for each year in the case of redundancy?
Presumably if I found another job within the notice period and handed in my notice ( 4 weeks from me to employer) then I'd forfeit the taxfree redundancy payment. Also I assume in the case of notice paid in lieu I couldnt start another job before the notice period had finished without forfeiting the redundancy payment and having to repay the remainder of the lieu payment?

sorry for so many questions never had to look into this before.

mdwork

McKneff

firstly, yes the redundancy payment is in addition to notice period (whether worked or not)
Yes it is one weeks notice for each full year worked up (i think) to a max of 12.

Yes, if you found another job and handed in your notice (only 4 weeks from you to them) you would lose your redundancy payment entitlement.

quote =Also I assume in the case of notice paid in lieu I couldnt start another job before the notice period had finished without forfeiting the redundancy payment and having to repay the remainder of the lieu payment?=quote

Not sure about this one but i think (and i stress think) that you would be able to start another job if you were paid in lieu of notice but you would be wise to check with ACAS on that one
My own personal opinion which is based on common sense, but i could of course be wrong is that pay 'in lieu of notice' actually translates to pay instead of notice so you would technically not be in your notice period. you would only be in your notice period if you were at work working your notice if you see what i mean.)
So i cant see why you cant start another job.

Tweetinat

If you accept PILON (pay in lieu of notice) then your contract of employment is terminated immediately, so you are not in any form of 'notice' period. You would be free to start a job whenever you wanted with no requirement to forfeit any payments.

HTH, Natalie

motorguy

Tweetinat wrote: »

If you accept PILON (pay in lieu of notice) then your contract of employment is terminated immediately, so you are not in any form of 'notice' period. You would be free to start a job whenever you wanted with no requirement to forfeit any payments.

HTH, Natalie

The only caveat there is that you cant claim benefits for the period that you got PILON for.

Grovester_2

pgilc1 wrote: »

The only caveat there is that you cant claim benefits for the period that you got PILON for.

No that's that not correct. I got PILON and was told this but then when at the jobcentre was told for JSA PILON is not a factor (contribution based). I missed out on 4 weeks JSA listening o the wrong advice. For benefits advice you must speak to the people that dish them out as they are based on your personal circumstances.

If you've completed 10 years service your statutory redundancy will be 10 weeks salary capped at £350 per week No tax or NI paid on this.

In addition you will get your notice period which will be dependant on your contract.

It may be worth asking if the VR package has any additional incentives. Some companies do not differeniate between VR and Redundancy and on taking Vr you are still redundant. VR doesn't effect benefits either.

laurar3

Hi, I am in the process of being made redundant and am in my notice period...The acas website is really useful or if you put redundancy into the search engine it will bring up what the minimum an employer has to pay you. It depends on age and also how many years you have been there, I know that the cap is £350 per week.

I was also told by Acas that I could forfeit my notice money and effectively stop getting paid by the company and start with a new employer and still get the redundancy. (Had to check with them as I am in 12 week notice period)

Acas were really helpful on the telephone and I would definately give them a call and then any advice you get you know will be spot on and completely up to date.

Good Luck
xx