redundancy pay question and length of service advice

WindChim

hi

sorry to ask a redundancy question after all the stickies etc, but my head is made of mush at the moment - was given redundancy notice yesterday (ie: under consultation now) and can't seem to get my head straight...

I've looked on all sorts of websites, and although I understand my legal entitlement to £310 per week pay out, I don't understand a few other issues, and wondered if any kind MSE-ers could help?

firstly, my continuous service is 8 years on 21st May 2007 ...they have put me under consultation yesterday, with my actual redundancy meeting being next week.... am I entitled to 7 or 8 weeks at £310 do you know?

secondly, they're on about doing a deal... if you don't take a deal, am I right in saying they have to keep me on for those 7/8 weeks at full whack, and then pay me off with 7/8 x £310?

which means, thirdly, if they do pay me off to get rid of me for disruption etc, and let me go early, do they do a deal that would give me that kind of figure.. ie: 7/8 full + 7/8 x £310 (and maybe even some commission consideration too, as I am in a commissioned role).

sorry to ask so specifically, I just really can't understand this at the moment, but am trying to get my head round things!! please help?

thanks
Windy

CFC

Hello Windy,

Not totally sure what you are asking, but here's the answers to what I think you are asking:

This is the minimum the law will give you:

1½ week’s pay for each complete year of employment when you were aged 41 or over
1 week’s pay for each complete year of employment when you were aged between 22-40 inclusive
½ week’s pay for each complete year of employment when you were aged under 22.

Employment is counted up to the relevant date, which is the date your notice expires. Ie they will give you written notice of when your employment will terminate, and it's that date which will dictate how many years of employment you have. The required statutory notice is one week if you have been employed for at least one month but less than two years, two weeks if you have been employed for two years, three weeks for three years, and so on, up to twelve weeks. After twelve years service, the statutory notice period remains at twelve weeks.

A week’s pay does not include overtime pay unless the overtime was regular and compulsory. Where earnings vary each week, an average of the 12 week period leading up to the redundancy will be used. If commission is paid regularly, this should be included in a week’s pay. An average should be calculated, for example, an amount that could be expected in a year, divided by the number of weeks worked in a year. The maximum weeks's pay is £310, even if you earn more than this. If you earn less than £310, it is your actual weekly wage, not the £310.

If you have been given notice of redundancy, you are entitled to paid time off to look for a new job. If you are under notice of redundancy and have found another job, you may leave to take the new job during the notice period and still be entitled to a statutory redundancy payment provided certain conditions are met.

If you are entitled to redundancy pay, there are reasons you might not get it, for example:-

• if your employer claims to have offered a suitable alternative job, you may lose the redundancy pay
• if you want to leave before the date your employment is due to end, for example, you have found another job (you may still be eligible for redundancy pay, but you will need specialist advice).

So, to sum up - you will be given your notice which will be the number of weeks of completed service at the point of termination of employment, and then after completing that notice the number of week's redundancy pay that you are entitled to. Any 'deal' therefore may well be notice + redundancy pay up front, leaving you free to look for another job and avoiding disrupting the morale of other employees by having you hanging around during your notice period.

Quite often the whole of the notice period is treated as 'gardening leave' ie you just get paid but don't go to work.

Hope this helps, best of luck looking for your next role.