Redundancy while on maternity leave

Watty86

Can anyone help please - I am half way through paid maternity leave (due back mid jan) however been told that my job is going so i am wondering what exactly i am entitled to when being made redundant?
Been working there for 7 years but my redunancy is only the statutory minimum. I have been told by my company that i will get 5 weeks basic redundancy pay due to my age (25), that the rest of my entitled SMP will be paid to me in a lump sum and that i am due 7 weeks notice but do i get paid notice as well as my SMP and redundancy?
Also what benefits would i be entitled to after being made redundant - we have a 4 month old son and my partner earns £1200 a month and i am only getting SMP at £536 a month just now plus child benefit at £81 and child tax credit at £42

Jarndyce

Watty86 wrote: »

Can anyone help please - I am half way through paid maternity leave (due back mid jan) however been told that my job is going so i am wondering what exactly i am entitled to when being made redundant?
Been working there for 7 years but my redunancy is only the statutory minimum. I have been told by my company that i will get 5 weeks basic redundancy pay due to my age (25), that the rest of my entitled SMP will be paid to me in a lump sum and that i am due 7 weeks notice but do i get paid notice as well as my SMP and redundancy?
Also what benefits would i be entitled to after being made redundant - we have a 4 month old son and my partner earns £1200 a month and i am only getting SMP at £536 a month just now plus child benefit at £81 and child tax credit at £42

The 5 weeks sounds right (half a week x 4 up to age 22, one week x 3 age 22 and over).

If I have understood it correctly, you will get paid notice if you are on contractual maternity pay (over and above SMP) you should get this for the period of your notice, on top of your SMP and redundancy pay.

Sorry can't help on benefits - not my area!

an9i77

Why will the OP get notice pay in addition to maternity pay? If she is due to be on maternity to, say January and she is given seven weeks notice before January I would wager that she'd only be entitled to the maternity pay she would have received during that period. Because the employer would have given her the notice, but this notice period falls during the planned maternity leave. Of course if she is on her full wage on contractual maternity pay there'd be no difference, but most enhanced maternity is not equivalent to the full wage! (except for perhaps the first few weeks) And if she's on SMP then surely she'd only get that for the notice period? Or am I missing something here?

Jarndyce

an9i77 wrote: »

Why will the OP get notice pay in addition to maternity pay? If she is due to be on maternity to, say January and she is given seven weeks notice before January I would wager that she'd only be entitled to the maternity pay she would have received during that period. Because the employer would have given her the notice, but this notice period falls during the planned maternity leave. Of course if she is on her full wage on contractual maternity pay there'd be no difference, but most enhanced maternity is not equivalent to the full wage! (except for perhaps the first few weeks) And if she's on SMP then surely she'd only get that for the notice period? Or am I missing something here?

The OP said she was on paid maternity leave, suggesting she was getting more than just SMP, although not necessarily the full normal wage. If so she would get paid her contractual maternity pay up to the end of her notice period, but would get the full amount of SMP to the end of her entitlement (she has indicated she will get this in a lump sum, which is fine).

getmore4less

http://www.legislation.gov.uk/ukpga/1996/18/part/IX

Would indicate that full pay is due during notice if the conditions are met.
(not on top of any payments for maternity)

Watty86

Just to clarify I am recieving basic Statutory Maternity pay at £128 a week. Thanks for having a look at this thread for me!! Any advice much appreciated as i am so confused by it all!

an9i77

From get more's link looks like they will make up your pay to your full wage for the notice period

Bexiwexi

Hi Watty.. Im going through the same process at the moment! i started mat leave June this year and although i cant help with benefit side as i havnt looked that far yet, im appealing against the decision to make me redundant.
i was told that i am entilted to be paid my notice on top of my stat mat pay being made in a lump sum..

embob74

When I was made redundant last year while on maternity leave I got my redundancy pay AND notice leave.
I also got my remaining SMP in a lump sum which was quite inconvenient really. I got taxed highly (although got a rebate later) and NI contributions were high and these aren't refundable.
Additionally you should bear in mind that you won't be able to work for the duration of your maternity leave. If you were to find a new job you then have the problem of paying SMP back.
You will be entitled to child tax credits (maybe a little working tax credits but you're close to the cut-off income limit) and child benefit.
Tbh I don't think you will get much more in tax credits than you do now as HMRC disregard the first £100 of each week you receive full SMP so they are only classing your income now as £28 a week - not much more than £0 is it?

getmore4less

You might want to read this thread

https://forums.moneysavingexpert.com/discussion/3544575