SMP and Voluntary Redundancy, HR Hopeless!!!

carolissosmiley_2

Ok, Here goes....

I have posted before about varies issues with voluntary redundancy but thought it easier to re cap and seek advice please.....

Myself and my colleague are both pregnant and are having to take voluntary redundancy in February after the 90 days consultation due to the fact that we will not be guaranteed part time jobs when we return after our maternity.

So, we've just had our meeting with HR to "finalise" things and they were hopeless.

We are entitled to our redundancy package and a month in leiu, this is all fine, no dispute there

The company have agreed that due to the fact we are in the qualifing period they will have to pay us SMP BUT.... they want to pay it in a lump sum in February.

Now our issue is that this will be heavily taxed and as it will be in this financial year, it will be calculated with this years earnings and we will not be able to claim the tax back.

We spoke to the statutory dispute line who said paying SMP in a lump sum is frowned upon due to the tax implications and that the tax office did not like this to happen for exactly the reasons I have stated.

Also they will pay in a lump sum and then what If we want or even need to go back to a part time job after 6 months, As first time mums we don't know how we will feel....

The company is saying that by paying us SMP monthly would mean that we are still employed by the company until our SMP runs out, therefore would not pay us our redunancy payment until the SMP is finishes, ie December 2010 and they say we wouyld then have accrued more leave and technically more redundancy pay...ARGH.!!!

All we would like is for our redundancy to be paid in February and either our SMP monthly or paid in a lump sum in the new tax year, Why should we pay the tax when we probably won't get it back??

Any similar stories or advice or who could we phone to help??

Thanks

archiesdad

Are you sure they are not holding off on giving you redundancy, perhaps hoping by the time your maternity leave finishes that business may be better? It's just that when you are on maternity leave you have more rights than another employee. Have you tried contacting acas?

carolissosmiley_2

No, It's not that. We would sign all the paperwork and agree the figures before we go, They just want us gone and paid off totally by the end of this tax year I reckon so it's easier for them in the next tax year.

We work for an airline and we are no good to them pregnant!! It is in their best interest for us to go!!

Thanks for your reply, we have spoken to ACAS who in turn told us to talk to the tax office who in turn told us to talk to..... and this is how it goes on, seems it's a bit of a grey area

Carol

longhauladdict

Hi

I've been in a situation similar in paying someones SMP when made redundant. The legal advice I was given was that it should be paid in a lump sum as long as it goes through payroll, then the tax should be calculated as per normal.

Unfortunately, I can understand that the company want to avoid paying holidays accrued, also you could have accrued extra service thus more redundancy and notice pay.

You mention that you may want to return in 6 months or so, if that's the case then you should seriously consider if VR is the right option for you as you would not automatically be considered for a role (the company only has to notify you of alternative positions for a max of 3 months.

I would maybe suggest a compromise with the company and ask if they will pay your redundancy in April (thus in the new tax year) but with a leave date of Feb so that only accrue an extra 6 weeks service? Obviously you will need some form of agreement for this to ensure you both stick to it xx