Redundancy scotland

babs2509

Hi wonder if anyone could help. I am being made redundant but I currently have a wage arrestment coming off my salary. Will there be money taken off my redundancy payment for this wage arrestment. I am under scottish laws.
Thanks
Babs

snowgood

Did you ever get a reply as I have a friend asking my advice about the very same thing and trying to find confirmation of my thoughts.

My understanding/belief is that redundancy is a compensation payment. As such it is not subject to NI & Tax deduction as its not actually earnings.

As its not actual earnings then the arrestment will not apply. The arrestment will still apply to your final wages/salary payment including any holidays, bonus, overtime etc.

I do know there seems to be a lack of knowledge in this area as previously it was uncommon to find arrestments involved (how things have changed!).

Personally I see no reason for wages to be run as normal, provide final payslip & P45, finishing employees employment, THEN do a separate payment for the redundancy by cheque or transfer. The redundancy in essence is a separate payment anyway.

Would really appreciate a second opinion on this.

Based Scotland also.