Redundancy payment not including commission bonus. Where do I stand?

latta1989

Hi all.

Currently going through redundancy. As title suggests my weeks pay has only been calculated to my salary.
It has not included in anyway the commission I get paid as part of my wage each month for hitting weekly sales targets.

There is a substantial difference between the 2 figures so weighs heavily on redundancy payout; I.e salary £100/week, commission £200+.

Where do I stand?

TIA

anamenottaken

latta1989 wrote: »

Hi all.

Currently going through redundancy. As title suggests my weeks pay has only been calculated to my salary.
It has not included in anyway the commission I get paid as part of my wage each month for hitting weekly sales targets.

There is a substantial difference between the 2 figures so weighs heavily on redundancy payout; I.e salary £100/week, commission £200+.

Where do I stand?

TIA

If you get paid commission on a regular basis then that should be included when calculating your weekly pay for redundancy purposes.

Do you get paid the same performance payment each month?

PHYTHIAN

If your wage usually includes overtime/bonus/commission then they should use a 12 week average
http://www.adviceguide.org.uk/wales/work_w/work_work_comes_to_an_end_e/work_redundancy_e/redundancy_pay.htm#how_much_is_statutory_redundancy_pay

latta1989

Thank you both for your replies.

It would be the same payment if I achieved the same sales. Some weeks I may have higher sales than others and every 4 weeks the commission I have earned is added up and added to my next wage. If I hit my target exactly each week I would get the same payment each month.

From looking into this a bit I thought the 12 weeks would be correct but apparently not.
My employer is British Gas and I assumed their team of lawyers would know exactly what we are entitled too. Unions have been involved too so I thought if it was that straightforward they would have fought for it.
Should I appeal my redundancy then?

latta1989

I should add I am employed in Scotland so their may be different legal stances.

getmore4less

latta1989 wrote: »

I should add I am employed in Scotland so their may be different legal stances.

don't think so,

AIUI will be based on the definition of a weeks pay in the employment act

starting from your employement status.

http://www.legislation.gov.uk/ukpga/1996/18/contents

will need to dig around and follow the cross references to a weeks pay.

try starting here

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

and a weeks pay

http://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II

Andy_L

Are they paying statuatory redundancy or an enhanced, company, package?

If statuatory then, as per posr #3, it is likely it should be included

If a company package then, as long as the payment is more than statuatory they can include it or not depending on what the contract says/custom & practice/how generous they feel

getmore4less

latta1989 wrote: »

Hi all.

Currently going through redundancy. As title suggests my weeks pay has only been calculated to my salary.
It has not included in anyway the commission I get paid as part of my wage each month for hitting weekly sales targets.

There is a substantial difference between the 2 figures so weighs heavily on redundancy payout; I.e salary £100/week, commission £200+.

Where do I stand?

TIA

The other issue may be you cannot be paid less than min wage, even if they can go to basic this would be £6.08 * hrs. do you work more than (100/6.08) 16.5 hours.

latta1989

Andy_L wrote: »

Are they paying statuatory redundancy or an enhanced, company, package?

If statuatory then, as per posr #3, it is likely it should be included

If a company package then, as long as the payment is more than statuatory they can include it or not depending on what the contract says/custom & practice/how generous they feel

I'll just explain what im thinking on the payment side fully...

It is a company package. BG provide a 3x multiplier on stat redundancy pay (GSSO standards), they are including an extra year where i worked through an agency for them, and they are giving us a pro rata amount for a payment we would have been due in January for having a pay freeze last year.
Sounds generous but I feel i shoould get pay inc. commssion to their standards, i.e

company package = 3 years (+1 agency) @ 0.5 week = 2 weeks + 1 year @ 1 week = 3 weeks * 3 (GSSO multiplier) = 9 weeks @ £300 (roughly my total pay), = £2700 + £140 pro rata Jan bonus = £2840.

What they are offering is roughly:

company package = 3 years (+1 agency) @ 0.5 week = 2 weeks + 1 year @ 1 week = 3 weeks * 3 (GSSo multiplier) = 9 weeks @ £108 (weekly pay not inc commission), = £972.

If i appeal the decision and it gets looked at, and they say yes i was entitled to commission, can they then take away the company package? I.e

Stat package = 3 years @0.5 week = 1.5 weeks + 1 year @ 1 week = 2.5 weeks @ my weekly earnings (roughly £300) = £750