Redundancy Help Please

simonleblank

A quick question to you helpful people.
I get paid a salary and the company also pay 10% into a pension fund for me. When they calculate my redundancy payment, is it just based on my salary or should include salary plus 10%?

Ta Robert

Advocatus

The redundancy calculation is made on the basis of a equation that is made up of a number of factors.

Weekly pay (capped to £380) x number of years of service (max 20) x age factor

You can find the exact details of this on the dti or berr websites. I can't post this up as I'm an evil newbie!

For 'normal' regular work, a week's pay is the basic weekly salary. For employees with variable working weeks and salaries the arithmetic becomes a little more complicated and involves looking at the twelve week period prior to the calculation date.

When you are paid a redundancy payment your employer must give you a written statement showing how your payment has been calculated. If your employer fails to give you a written statement you should write to them asking for one.

It will ultimately depends on how your "salary" is defined in your contract of employment. If the pension contribution = part of salary you should get it. That would be unusual, you're redundancy pay is likely to be a multiple of your basis salary.