Not clear on Redundancy entitlement.

Northern_Jon

Hi, first post and after a little advice if someone can help please.

Our consultation period started on the 15th June whereas 300 full time and 100 part time staff are to be made redundant. The 400 staff are not based in one particular place so do I assume that 30 days consultation period is correct? Rather than 90 days if we were all located at the same establishment.

Secondly, speaking to my HR department they seemed a bit "fuzzy" on what I would be entitled to (especially the notice period). She indicated that the Notice and Redundancy pay are the same thing.

I have 8 Years service, therefore:

8 x 1.5 weeks (12 weeks redundancy) they are paying more that statutory.

8 x 1 week (8 weeks notice) Very doubtful that we would have to work this due to the position we hold.

Holiday accrued.

Long service holidays (entitled to 5 days this year) if we don't use these we get them paid in Feb. I take it we don't have to accrue these as we can take these from the start of the year, so should get all 5 days.

I'm considering VR so trying to get an idea of figures etc before I put my name forward, little difficult if HR are not sure themselves....

If we do get told on the 15th July that we are redundant is the redundancy / notice etc paid over a period of time or in one lump?

Thanks for any advice.

Jon

Pink_Mink

Our HR department were also very vague and didn't to commit to anything when we heading out of the door Jon!

I suppose it is different for each company, but my contract was terminated at the start of the month (4th) and I was paid my redundancy settlement, notice payment, unused holiday and projected bonus payment in one lump sum on what would have been my normal salary date (the 24th of that month).

jazzyman01

It would depend on how the business is structured as to whether it would be 30 or 90 days. For example if there are 20 locations quite a distance apart and all responsible for their own budgets/income etc then it would be separated out. However, if they are just satelites and reporting into one office which manages everything for them, then it is likely to be seen as one entity and 90 days would apply. If the Company gets this wrong then they can be liable for a 90 day payment for every employee.

You state that you would get 1.5 weeks for each completed year of service and state it is more than statutory. Please note that any service over the age of 41 would get this amount anyway (capped of course). So you may be quids in or just a little depending on how much over the cap you get paid.

It is usual for companies to pay all outstanding monies at the next payroll run, terminate employment and issue a P45 at the same time.

If they make you redundant immediately following the consultation period then it would depend on whether they want you/your colleagues to finish up projects etc.

Notice and redundancy pay are not the same thing. Apart from anything else redundancy payments are free of tax to a max of £30k. In the main notice is taxable/NI etc unless PILON is silent in the contract of employment when you might well be able to get away with that free of tax. The total sum of both will be capped at £30k free of tax anything over taxable.

Northern_Jon

Thanks for the responses guys.

The branches are all run independently so the 30 days notice would as I thought be applicable.

Yeah I know about the 1.5x for over 41 years of age. The company is actually paying 1.5x for upto 41 and 2.5x for 41+ so not a bad deal.

So basically, with 8 years service they "will" have to pay me 8 weeks notice (taxable) whether I work it or not (which is doubtful).

Another question I have is about a company vehicle I use (company van) which I pay tax on to use for private use. Going back a few years a guy at my old work got made redundant and was allowed to keep his company "car" until his notice period was up, is that something I could persue?

Thanks again

Jon

jazzyman01

IT would depend on what your contract states. I have used different contracts for different roles. If business van it has been clear that when on long term sick or redundant that the vehicle would be immediately returned to the business. However, where it has been a "perk" as well as a company vehicle, then it can be used during notice.

Yes re notice - can be either PILON or worked.

Northern_Jon

There is a possiblity that we are going to be told if we are being made redundant next week (earlier than the end of the 30 day consoltation period) If that is the case will they have to pay us notice upto the end of the CP (15th) and then the usual notice (8 weeks for me)? Unless they want us to work it of course.

Cheers

Jon