Pls Help: OR wanting to take OH Salary in Lieu of notice

teamjb

Hi,

My OH, was paid 3 months’ salary in lieu of her working her notice. as part of this she had to sign a contract stating that the payment was paid without prejudice (as there is also a personal injury claim going through too) she has been off work for 20 months and as part of the terms of the contract she signed she is not able to seek employment until the end of February. but even then due to her illness there is no guarantee that she will be able to get a new job anytime soon, and defiantly nowhere near what she told the OR her monthly outgoings where (which at the time of the bankruptcy order was covered by her sick pay)

anyway, this issue was put to the OR's technical team and they are seeing it as a redundancy payment and therefore want to take the whole lot, that will leave my OH with nothing to live on and the added pressure and stress of having to find a job when she is not fit to work!

Can anyone offer me any advice, i have a very upset GF at the mo!

Whirlee

If she's too sick to work shouldn't she be getting benefits? She would then live on these. In relation to how the OR should treat a payment in lieu I don't really know, but if you think they're wrong try one of the debt charities for advice.

Ineedaname

I'm really sorry to hear this has happened. I don't know the rules on redundancy pay but my thoughts are that she needs to send a copy of the contract she signed along with an income and expenditure sheet for the 3 months showing how much of the money she needs to live on. Look into what benefits she is able/unable to claim during those 3 months and then able to claim once the 3 months are up. If there is a discrepancy which would mean you are worse off as a couple during the 3 months if she loses the entire pot of money then that needs to be made known too.

Basically put in front of the OR all the evidence you can to prove the money is required for reasonable living expenses during the 3 months. It may not mean she can hang on to all of the money, but might end up with her keeping some to live on.

Good luck and hopefully one of the members who has access to the rules will pop along shortly with their advice.

debtinfo

this is slightly unusual which is why it was probably passed to the technical section but basicaly if the payment is compensation for the loss of the employmnt it is an asset in the bankruptcy regardless of what your perceived need is now

As it was passed to the technical section it is unlikely that you will change their mind unless there is new information that they have not already taken into account

teamjb

Thanks for the all the advice!

What we don’t get is that if she was to go into work for the next three months she would get exactly the same amount of money! She has not been paid any more!

the reason she is not able to go in and physically work her three month notice is that she is not capable to do so due to ill health. She had to hand her notice in as positive step to her recovery.

they are seeing it as an ex gratia payment, which it wasn’t, it is what she would have earned if she went in. Also it is not a redundancy, so not an "asset".

This whole ordeal has really affected her health, and now with the prospect of losing the money that was to pay for her living expenses as stated in the BO, she feels that she is being pushed back into the work place when she is neither physically or mentally able to do so!

fermi

http://www.bis.gov.uk/insolvency/contact-us/Complaints%20Procedures

Start a formal complaint?

teamjb

fermi wrote: »

wwwbis.gov.uk/insolvency/contact-us/Complaints%20Procedures

Start a formal complaint?

Thanks for the link, this is the next step i feel.

we are not trying to get one over on the OR, we just feel that based on the information that we have been given, and a lot of "common sense" we are not asking for anything other than what she is intituled to. (I know certain rights where given up by going down the BR route after having gone down it myself over 5 years ago)

fermi

I've also PMd a CAB advisor to see if CAB specialist support or similar might be able to help?

I think unlikely, but you never know.

debtinfo

The problem here seems give the definition of what the money she has received is. What does the letter from the employer actually refer to it as.

Another question what has she been receiving money wise to pay for her expenses before this

teamjb

fermi wrote: »

I've also PMd a CAB advisor to see if CAB specialist support or similar might be able to help?

I think unlikely, but you never know.

Thank you so very much. (i have hit the thanks button too )

Hey, what doesnt kill us will only make us stronger! right?

teamjb

debtinfo wrote: »

The problem here seems give the definition of what the money she has received is. What does the letter from the employer actually refer to it as.

Another question what has she been receiving money wise to pay for her expenses before this

I think that is what it has come down to, but due to the Personal injury claim she has going on at the moment, the employer is / was very hesitant to but what it actually was due to it being misconstrued by the lawyer that is on the PI claim! Although they are "unrelated"

She was on sick pay that was at 50% of her salary, plus incapacity from the government. now she will just be on the incapacity which will leave her with a £700 deficit based on what total expenditure that was stated and agreed in her BR Order.


where the h*ll they expect her to find that i have no idea!