Redundancy??

Gary1980

Hi all.

How does compulsory redundancy work.

There are Mrs than 100 staff being made redundant so the company are doing a consultantion with a group of employees to bargin for the payout.

Can they do this and they normally pay statutory plus 1 week for every year. So basically statutory x2, will compulsory be lower?

Thanks
Gary

KiKi

Gary1980 wrote: »

Hi all.

How does compulsory redundancy work.

There are Mrs than 100 staff being made redundant so the company are doing a consultantion with a group of employees to bargin for the payout. Can they do this

Yes, a 90 day consultation is required for 100+ employees, and the employer is lawfully required to undertake 'collective' consultation either through TUs or through appointing employees to represent the masses. However, you should still have individual consultations so it can be explained why you've been selected or why you're at risk etc.

and they normally pay statutory plus 1 week for every year. So basically statutory x2, will compulsory be lower?

Thanks
Gary

Statutory means the lawful minimum amount that MUST be paid. So if they're paying you stat plus one week then you're getting (around) twice the amount. 'Compulsory' doesn't come into it in terms of 'compulsory' redundancy - you MUST be paid the statutory minimum if you're made redundant, and if your company policy is that you will get stat plus one week then that's better than statutory - obviously!

Hope that makes sense. Have a look at the direct.gov website for more info on redundancy: http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_10029835

KiKi

Gary1980

Thanks for the information.

1 other thing.

if you've been put on 90 days at risk. Is this classed as an official notice period. So therefore if the companies usual policy is to pay 1 week for each year as notice, plus statutory.

Could this mean then after the 90 days only statutory will be paid?

Thanks
Gary

getmore4less

You need to clarify what the standard payout is.

Notice is sepertate from redundancy pay.

so do they normaly pay enhanced redundancy statutory + 1 week
or is it statutory redundancy and PILON.

Consultation is not notice allthough they can run concurrently most places issue notice after conxultation.

The statutory consultation determines the earliest a termination can take place.

Note service for notice nd redundancy are calculared sifferently if PILON is paid so can be different.