Voluntary Redundancy

snout71

I have been employed by the same company for 12 years

one of our shops (bookies) is closing due to poor business and the owner called a meeting and asked if there was anyone interested in taking voluntary redundancy.

after a short while i raised my hand and said i would consider it, he said he would look into it and see what he can offer me.

today, he called me into the office and offered me 12 weeks redundancy pay and 5 days holiday pay, BUT, he needs me to work on till JUNE, but wants to start redundancy now so wants to pay me for the next 8 weeks tax free, BUT this amount is deducted from my redundancy pay

doesnt this mean that i will be basically working the next 8 weeks for free?

what should i tell him?

nashly

Tell your boss to rotate, redundancy pay is tax free, you would also be entitled to 3 months notice pay.

snout71

dont think he was going to tax it,

never thought of notice, so surely he has to make me work the notice (taxed) before he can give me redundancy then?

McKneff

You are entitled to 12 weeks redundancy 1 week for each full year of employment (1.5 for any year over 41 years of age)
(capped at £400 per week)

You are entitled to 1 weeks notice for each full year of employment

You are entitled to any accrued holiday.

You can work out the figures yourself since you didnt put any figures up here

Good luck.

snout71

looks like he was trying to pull a fast one then, got to admit, that doesnt suprise me in the slightest.

think he tried to polish it up by telling me i can work tax free for eight weeks (he failed to mention he was taking it out of my lump sum till i questioned him)

so, this being voluntary redundancy doesnt make any difference??

McKneff

snout71 wrote: »

looks like he was trying to pull a fast one then, got to admit, that doesnt suprise me in the slightest.

think he tried to polish it up by telling me i can work tax free for eight weeks (he failed to mention he was taking it out of my lump sum till i questioned him)

so, this being voluntary redundancy doesnt make any difference??

Makes no difference at all, the .gov website is interesting and you could print things off if you wished.

Cant understand people like that when you have given them your loyalty for 12 years and they try to rip you off. Just awful.

jazzyman01

If you accept this you will be liable for tax as it is not a redundancy situation. He can ask you to work your notice period, usually a month but could ask that this is extended to end of June. Redundancy should then be paid out after termination of employment and tax free up to £30k.

snout71

my worry is that he will withdraw the redundancy option from the table (can he do that?)

i really need the career change, but want what i am entitled to

hcb42

he is having his cake and eating it here, and the tax situation is not on.

He could withdraw, then again if you present him with the facts about what you are entitled to, you might be able to negotiate and still get the right package. Is the five days holiday correct, i.e. that is what you have accrued and not taken (or would be by the leaving date?)

snout71

i can only assume that he has given me the correct amount of holidays acrued as i am not sure how it is calculated.

i took a week off in first week of march but thats all i know, he told me 5.67 days holiday acrued

spoke to ACAS today and found out that if he is only giving me 8 weeks notice then he is liable to PAY me for other four weeks, i might see if i can use this as a bargaining chip cause i am not fussed about the 4 weeks as he would probably only get me to work it anyway

snout71

right......

just had another meeting with my gaffer, i told him what i am entitled to and even told him i was willing to waiver the extra 4 weeks notice pay (working 8 but owed 12 weeks) but he said he cannot accept this

he basically said that what he offered was a compromise agreement in which he would between myself and him he would pay me extra cash to cover the tax (cash in hand) and then pay me £1,800 at the end of the 8 weeks (also cash in hand)

told him i cannot accept this as i would not be able to claim anything from DSS if i was not legally made redundant

so he has told me i am to remain employed and carry on as normal now.....i am absolutely gutted, business is slow the job is boring and was looking forward to leaving and finding a new career.

i cannot believe he was prepared to break the law to get rid of me on the cheap.....what do i do now????