Redundancy amount, being diddled??

sassygirl_2

Hi,
Hubby was made redundant on Friday last week. We have receievd a letter today from the company outlining what payments he will get.

They have put down that Statutory redundancy pay is £6984.60

I don not think this is right so can someone please correct me if i am wrong.

25 years in the same job, redundancy capped at 20. Aged 43, Salary is £17,850 per annum. so in my calc: 17,850 / 52 = £343.26 pw

when put into the online calculator on the BERR site it comes out that he should receive £7208.46
Can someone check this for me please

One more thing, The letter states his employment was terminated as of Monday 26th, yet he didnt get told he was being made redundant unti friday the 30th Oct, Is this legit?

dickydonkin

sassygirl wrote: »

Hi,
Hubby was made redundant on Friday last week. We have receievd a letter today from the company outlining what payments he will get.

They have put down that Statutory redundancy pay is £6984.60

I don not think this is right so can someone please correct me if i am wrong.

25 years in the same job, redundancy capped at 20. Aged 43, Salary is £17,850 per annum. so in my calc: 17,850 / 52 = £343 pw

when put into the online calculator on the BERR site it comes out that he should receive £7203.
Can someone check this for me please

One more thing, The letter states his employment was terminated as of Monday 26th, yet he didnt get told he was being made redundant unti friday the 30th Oct, Is this legit?

First, the company have a requirement to issue a written breakdown of the redundancy payment, outstanding holiday pay, lieu of notice payments etc etc which they seem to have done - hence your query.

Without the full details of the salary (ie basic - not including bonuses/shift premiums etc), it would not be for me to say if the payments from the company are correct, however, the maximum stat redundancy payment is now £380.00 for every year worked for the company (although under 22 and over 41 incurs relevant reductions and increases ).

It would seem that your hubby started his job aged 18 therefore from the age of 18 - 22, those years of service will be subject to a reduction in statutory redundancy payment and that is where I suspect the discrepancy is in your calculation - but check!

Obviously, if one did not earn £380 pw, then the relevant weeky wage for the role would apply - although if you earn over that amount, you will still only get the £380.00.

As your hubbys termination was quoted at being on the 26th but not being informed of redundancy until the 30th, this seems quite strange and potentially a breach of employment law.

I am unaware of the number of personnel being made redundant at your husbands workplace, (this is relevant regarding consultation periods) but there is a requirement for consultation with affected employees or their representatives prior to termination of employment.

If this has not happened and there has been no consultation or right of appeal - see a solicitor. BTW check your household insurance as you may be covered for legal assistance which will almost certainly include employment disputes.

Good Luck

sassygirl_2

Thankyou:)

So they can use any 20 years out of the 25 he has worked there i.e when he started aged 18 rather than starting at when he was aged 23 (23-43 =20 years for redundancy)

He was informed originally that someone had to be made redundant on the 15 th october, there were 3 people listed.

Then on the 26 they had a meeting and the accountant said that he had to do a matrix points scoring system on each person. As far as hubby was aware he was still in the running as he has 25 years experience.
On friday 30th he was takien into the office and told it was him that was going and that he could go home and not come back.

I dont have household insurance as we do not own our own home

moo842

ok, you need to aske the employer for a breakdown of the payment, your husband is also entitled to 12 week notice which can be paid in leiu of notice, so this also needs clarifying.
it would be the last 20 years that they should work from.
if you are concerned something isn't right contact acas (just google for their website). they are the specialists and know what the current rules are.

sassygirl_2

Thankyou He is getting 12 weeks payment in lieu of which they have got that wrong too :rolleyes: according to my calculations.
The accountant is not in again until friday so we will have to wait until then to get the full breakdown

pelirocco

sassygirl wrote: »

Thankyou:)

So they can use any 20 years out of the 25 he has worked there i.e when he started aged 18 rather than starting at when he was aged 23 (23-43 =20 years for redundancy)

He was informed originally that someone had to be made redundant on the 15 th october, there were 3 people listed.

Then on the 26 they had a meeting and the accountant said that he had to do a matrix points scoring system on each person. As far as hubby was aware he was still in the running as he has 25 years experience.
On friday 30th he was takien into the office and told it was him that was going and that he could go home and not come back.

I dont have household insurance as we do not own our own home

Im not sure that they followed correct proceedure there doesnt appear to be enough consultation tbh Has he been informed of his right to appeal ? . You should contact ACAS asap

dickydonkin

sassygirl wrote: »

Thankyou:)

So they can use any 20 years out of the 25 he has worked there i.e when he started aged 18 rather than starting at when he was aged 23 (23-43 =20 years for redundancy)

He was informed originally that someone had to be made redundant on the 15 th october, there were 3 people listed.

Then on the 26 they had a meeting and the accountant said that he had to do a matrix points scoring system on each person. As far as hubby was aware he was still in the running as he has 25 years experience.
On friday 30th he was takien into the office and told it was him that was going and that he could go home and not come back.

I dont have household insurance as we do not own our own home

Unfortunately, service alone cannot be used for determining who will be made redundant. As you stated, a selection matrix had been used and this should have included subjective criteria such as performance and application to work and MUST have included objective criteria such as timekeeping, attendance and any disciplinary incidents.

The scoring of the selection matrix should have been carried out by two people - usually HR for objective criteria and normally, your husbands manager/supervisor for performance scoring.

Using length of service as a sole criterion for redundancy selection can potentially be deemed as age discrimination, however some companies still use length of service as a 'tiebreaker' where scores in a selection matrix are evenly matched.

What I can gather from your post is that your husband was notified of being 'at risk of redundancy' on the 15th Oct. The other two people identified as at risk (selection pool) should also have been informed (in writing) at the same time and all treated equally.

You have not mentioned if after the confirmation of redundancy your husband was given the opportunity to appeal against this decision. This is essential if your husband wishes to pursue a claim for unfair dismissal and is also a legal requirement. The time limit for appeal is usually 5 days from confirmation of redundancy.

Do make sure your husband registers with the jobcentre IMMEDIATELY.

Judging by your husbands service, he will potentially be entitled to at least 6 months jobseeekers allowance (contribution based) irrespective of any savings, redundancy or lieu of notice payments he has received.

If you (his wife) are working, that makes no difference either - remember, the first six months JSA is contribution based (National insurance). It is after six months where means testing kicks in and income and savings is then taken into consideration.

Any lieu of notice payments - probably 3 months in your husbands situation will be deemed as CAPITAL and not EARNINGS - so make sure he signs on straight away to get what he is entitled to after paying into the system for all of those years.

Good Luck

Addition - Sassygirl - are you saying the 'accountant' had to score a selection matrix on his own?
Depending on the size of the company and it is reasonably practicable to do so, the scoring should be undertaken by at least two people to ensure fairness - in particular if a lot of subjective criteria has been used in the selection matrix.

Addition 2 Just checked, and this is what your husband is entitled to based on direct.gov.uk calculations.

Based on the details you have provided, you are entitled to 21 weeks of statutory redundancy pay at a rate of £343.26 which totals £7208.46
This calculator is intended only as a guide to show how statutory redundancy pay is calculated for people who are entitled to receive it. Whether or not you are entitled to redundancy pay will depend on your individual circumstances.



The calculation of 21 weeks of pay is based on:

• 0.5 weeks pay for each full year of service where your age was under 22
• 1 weeks pay for each full year of service where your age was 22 or above, but under 41
• 1.5 weeks pay for each full year of service where your age was 41 or above

sassygirl_2

Thankyou for that

The matrix system was carried out by 2 people, accountant and managing director.

The three people in the pool were all notified on the 15th in writing.
The final decision made on the 30th Oct. But employer now saying that his emloyment is terminated as of the 26th October!

We have the forms from the JCP to fill in and they have said we cannot claim unitl the payment in lieu has run out in January (but that another thread which i have running in benefits section)

From what i can tell they have carried out everything to the book, but there are discrepancies in the payments and the timings i,e the 26th oct - 30th oct.

Acas have advised us to speak to the Employer regards this and if we still feel we are owed, then put it in writing as a grievence, if not resolved to ring them back

He received a letter today with all this on and it states we have 5 days to appeal the decision, which we are not sure wether to do or not as 1. The department is no longer there so definately no job (although Hubby had work in at the time, which is now being sent to another branch) and 2. it will delay our money and we just cannot afford for that to happen with having 3 young children.

thanks for the addition 2 lol It may be because then he only turned 43 in June so has not done a full years service being 43

edit: Nope not that either, just checked 18 yrs at 1 weeks pay and 2 yrs at 1.5 weeks pay.
Guess we'll have to wait til friday

sassygirl_2

Can you confirm that he can claim Jobseekers from 1st Nov as his payment is in Lieu of notice. Or should he claim from 1st december?

dickydonkin

Sassygirl,

Go and check with jobseekers. My wife was made redundant last November and she received lieu of notice payments and I was also under the belief that she would have to wait until her lieu of notice period was spent.

She was informed that used to be the case but she was told that lieu of notice payments is now classed as CAPITAL and would not affect contribution based JSA and would be paid immediately - which it was. Check again and keep on their backs.

Jobseekers have a lot of new recruits and you may have been given some duff information by a new new starter. Please check because either your husbands Jobseekers office or my wifes are wrong.

sassygirl_2

Thankyou I will get him to ring again (3 days in a row LOL) Im presuming he will get CBJSA as he has paid 26 years of NI.