Redundancy terms

ffacoffipawb

I will be made redundant shortly.

The redundancy terms are:

4 weeks' salary per year of service
PLUS
an extra 2 weeks' salary for each year of service over age 40.

Pro rata for part years. First £30,000 is tax free.

I think this is generous and can't wait for the dosh!

How does this compare with other packages people have been offered or are in people's terms and conditions of employment?

Just being nosey.

Ice_Queen_112

Sounds very good for an ex-London package. I worked for a City (London) co in the financial services sphere (in HR) and we offered 2 weeks per full year (no pro rata for part years). However, check what the situation is with your notice. are you being asked to work it or will you be paid it on top? The 30K tax free condition is statutory, but only applies to redundancy pay, not contractual notice.

oldfella

very generous

Mike

Gambler

Very generous and very fair in my opinion to base it on service.

When Iw as made redundant I got about £17K for 11 years service. But people who had been there only 6 months were getting £7K +

ckerrd

Very generous indeed. Well above the statutory minimum. I like the 2 weeks salary for over 40 could do with that. otherwise I think I am on the same deal as you.

Geoffo_M

It sounds very generous to me. I am being made redundant as well and am getting 3 weeks for each year of service. If I was under 50, it would have been only 2 and a half weeks.

Paul_Herring

You haven't mentioned anything about pensions - did you have a company pension there?

Also, not too far off-topic - Martin's after redundancy opinions: http://forums.moneysavingexpert.com/showthread.html?p=2994962#post2994962

ffacoffipawb

Paul_Herring wrote:

You haven't mentioned anything about pensions - did you have a company pension there?

Also, not too far off-topic - Martin's after redundancy opinions: http://forums.moneysavingexpert.com/showthread.html?p=2994962#post2994962

Over 50's get 2 weeks redundancy per year plus immediate pension based on accrued service (instead of having to wait til 62, both sexes).

Over 45's get 2 weeks per year, plus pension from 50 instead of 62, unreduced for early payment.

I just miss out on the latter, damn it!

Pension is final salary to 2004 (deferred pension on the old employer's scheme), generous money purchase thereafter (business sold off in 2004, then 2 years later most of the staff go and company relocates!).

The redundancy terms are a residue from the previous company. I doubt that the generous terms will stay very long for those that remain, as the company is likely to harmonise the T&C's going forward. The people in the other location have much less generous terms.

I can't wait for redundancy, though I have no date yet.

bristol_pilot

These terms are on a par with the best that is offered in the private sector - they are good terms.

If your payment is more than £30K, you might ask if the Company will split the payment across two or more tax years so that all payments to you are tax-free. My Company did this recently for some people who were made redundant, the other terms were the same as you are being offered.

Good luck.