Ehanced payment minus statutory...I'm confused

bstu123

Hi All,

My employer has drawn up my CA for me to sign but I am confusiod about my enhanced package.

It states in my contract that the enhanced package is 3x weeks per year worked which is great but in the CA the figure is say £10000 the have deducted the Statutory payment of say £2000 why? surely 3x means 3x...why deduct statutory which is 1 week per year....that would make it 2x per year i receive.

Have they got it wrong?

Regards,

Stu

getmore4less

They can do what they like with a CA but make sure you get more than your contraced redundancy would have been anyway.

Say you are happy with 3weeks per year(if you are). without any deduction.

Ask them why they think they need to remove statutory?

Statutory is capped at £380(not full pay) might need to remind them of this if they insist on removing it.

Makes no sense.

Why are they offering a CA why not just make you redundant.

jdturk

Maybe they think you can claim statutory ontop?

Pete111

ok you need to check your contract of employment and/or company redundancy policy very carefully .

If it states in your contract of employment (or the policy) that redundancy pay will be 3 weeks per year then that is what it must be. Do not sign a compromise agreement that allows for statutory redundancy pay to be deducted as this is contractually incorrect.

To be honest I wouldn't sign a compromise agreement at all if they are not offering any more than you are contractually entitled to. In doing so you sign a myriad of employment rights away - why do this for no gain (or in fact a loss!)?

P

bstu123

ok you need to check your contract of employment and/or company redundancy policy very carefully .

Contract states:

1 week per years service (statutory)

3 weeks per years service (enhanced)

Payment at company discretion.

I am being offered enhanced (via CA) as the selection criteria is a bit subjective but I thought I was getting the full 3 weeks per year but what they have done is calculated 6 years x 3 weeks = ie £10,000 minus statutory payment already made £2000 ? I havn't received anything.

Surely 3 x years service should mean just that?

Pete111

bstu123 wrote: »

ok you need to check your contract of employment and/or company redundancy policy very carefully .

Contract states:

1 week per years service (statutory)

3 weeks per years service (enhanced)

Payment at company discretion.

I am being offered enhanced (via CA) as the selection criteria is a bit subjective but I thought I was getting the full 3 weeks per year but what they have done is calculated 6 years x 3 weeks = ie £10,000 minus statutory payment already made £2000 ? I havn't received anything.

Surely 3 x years service should mean just that?

Do not sign the CA at this point - it appears to be inviting you to sign up to a lower redundancy payment whilst simultaneously waiving your employment rights.

You need to speak to your Mgr /HR and ask them to explain :

1) why they appear to be breaching your contract in reducing the company redundancy pay by the stautory amount.

2) why on earth you should sign a compromise agreement that in effect means you agree to this.


If you wish, Private Message me with the exact terminology used in your contract of employment that relates to redundancy - I do this stuff for a living so can probably assist.


P

Emmzi

it's very common with a compromise agreement for them to pay for you to see a solicitor.

are they?

have you?

Pete111

Emmzi wrote: »

it's very common with a compromise agreement for them to pay for you to see a solicitor.

are they?

have you?

I'm guessing no on both counts Emmzi!!

Emmzi

Pete111 wrote: »

I'm guessing no on both counts Emmzi!!

In which case I'd ask for it. Agreeing things like good leaver terms and references is very important!

Pete111

Absolutely. We usually pay £500 or so for an employee to get advice and we can't move ahead with the CA until they do.

Still wondering why he would bother signing a CA if he got nothing over contractual redundancy though (I wouldn't!). Would be interested in seeing the wording in the contract

P