Redundant at 63

Pobby

A long standing friend is being made redundant after 36 years at the same company. It has changed hands a few times yet I see that makes no difference to what he is owed. His HR department has told him that under new legislation they are only obliged to give him £2,000. Sounds a bit dodgy to me. Wonder if anyone can come up with the real answer.

I will say thanks in advance.

I_luv_cats

http://www.direct.gov.uk/redundancy.dsb

I_luv_cats

Statutory redundancy pay basics

You have the right to a statutory redundancy payment if you are an employee who has worked continuously for your employer for at least two years and you are being made redundant.
Statutory redundancy pay is also due when a fixed-term contract of two years or more expires and is not renewed because of redundancy.
You do not have to claim statutory redundancy pay from your employer, they should automatically pay it to you. If your employer does not give you statutory redundancy pay when you are entitled to it you should write to them asking for payment. If your employer still refuses to pay you or cannot make the payment you could make an appeal to an Employment Tribunal.
How much statutory redundancy pay you will receive depends on:

• how long you have worked for your employer
• your age
• your pay

• Calculating your redundancy pay

Company redundancy pay

Your employer may offer you additional redundancy pay under your employment contract. For example, they may offer you a higher pay rate, or reduce the qualifying criteria so more people are entitled. You should check your employment contract for details about your contractual redundancy pay.
Your employer cannot offer you lower than the statutory redundancy pay scheme in your employment contract.

Pobby

Very helpful and thanks again. I recall a time in the 70`s and 80`s where redundancy pay could have bought you a house. My wife was an ICL employee and some of the mid management were cleared out with £30k pay off, only to be taken back as self employed.

Times have changed lol .

caeler

Statutory Redundancy used to be capped at 65 years old so I thought perhaps they are a little out of date on the rules but that doesn't explain it if he's 63 years old. Suggest he uses the above link, prints off the results and asks why he's not getting more. If they are fobbing him off with wrong compensation I wonder what else is wrong.........

p00hsticks

Pobby wrote: »

A long standing friend is being made redundant after 36 years at the same company. It has changed hands a few times yet I see that makes no difference to what he is owed. His HR department has told him that under new legislation they are only obliged to give him £2,000. Sounds a bit dodgy to me. Wonder if anyone can come up with the real answer.

I will say thanks in advance.

Are you sure he is being offered redundancy ? It sounds to me like they may be offering him an incentive to take early retirement, which is something entirely different.....

getmore4less

I wonder if thye have an enhanced scheme and that is tied in with a pension.

anyway.

12 weeks notice

20years service over 41 so 30weeks & £430 statutory £12900

patman99

The £430 is the supposed maximum as laid-down by Govt. An employer can pay less than this, but in theory, no more. However, there are a few cases where employers have paid-out more.