Redundancy rate rise - when does it take effect?

chuffee

I'm currently working my notice and will be made redundant on 31st March.

I've now received a letter outlining my statutory redundancy entitlement. It's calculated using the current cap to weekly income, £380. I was expecting it to be at the rate when I finish with the organisation. ie capped at £400, after the February rise.

What is the correct approach to this calculation, the figure when you are informed of redundancy or when your job ends?

Gordon_Hose

It came into effect on the 1st Feb, so from then everyone should get it. You need to ask your employer to re-assess your redundancy schedule to reflect this.

My consultation period started in October, finished in December and I'm not coming to the end of my 3 month notice. My employer provides an ex-gratia redundancy package and statuatory, but takes away the SRP from the ex-gratia payment, so when it went up I wasn't any better off, but they did give me a schedule showing that SRP was raised to £400pw.

Bear in mind that £400 is the maximum weekly payment, so if you only earn £380 a week that's all you'll get.

getmore4less

The acual date is buried in the employment act to do with the calculation date for a weeks pay.


http://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II/crossheading/the-calculation-date

for redundancy section 226(5) it is the calculation date for redundancy which is in 145 or 226(6)

http://www.legislation.gov.uk/ukpga/1996/18/section/145


It is not clear to me which date is the relevent date.

S226(6) seems to say the date of notice.
S145 the relevent date for redundancy is termination or later if 145(5) applies.

chuffee

Thanks for the help, I'll get back to the boss and ask for some clarification. With 7 years service it's a difference of £140, so not insignificant.


Cheers for the links too, useful to see even in a language I can't really speak...