Cap on Redundancy

lou-28_2

Hi

I see from the HMRC website that statutory redundancy is capped to 20 weeks.

My work have offered voluntary redundancy before compulsory redundancies take place and have capped their offer to 12 weeks.

Are they allowed to cap it to 12 weeks or does it need to be in line with statutory?

Thanks

McKneff

As far as I know, statutory redundancy is capped at 12 weeks for ages between 21 and 41. It is more than that only if you are over 41.

Anyone over 41 gets 1.5 weeks redundancy payment for each full year they have been employed by the same company

getmore4less

McKneff wrote: »

As far as I know, statutory redundancy is capped at 12 weeks for ages between 21 and 41. It is more than that only if you are over 41.

Anyone over 41 gets 1.5 weeks redundancy payment for each full year they have been employed by the same company

Statutory redundancy

A weeks pay capped at £430 (adjusted yearly in Feb)

Upto 20 weeks service counted, you count back from the termination date.

any full year over 41 get 1.5 weeks
any full year below 22 get 1/2 week
inbetween 1 week

Max is 30weeks

edit:
Found a handy table

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@employ/documents/digitalasset/dg_177260.pdf

edit 2:
There is a 12 year(week) limit on statutory notice often confused with redundancy which has 20 years(upto 30 weeks)

getmore4less

lou-28 wrote: »

Hi

I see from the HMRC website that statutory redundancy is capped to 20 weeks.

My work have offered voluntary redundancy before compulsory redundancies take place and have capped their offer to 12 weeks.

Are they allowed to cap it to 12 weeks or does it need to be in line with statutory?

Thanks

The payment needs to exceed the statutory payment which can be capped at £430 for each week.

12 weeks enhanced could exceed 20 weeks statutory

get it clarified.

lou-28_2

Thanks. I realised that the voluntary redundancy is capped at 12 weeks but its a full week pay per year, not the £430 cap. So works out above statutory.

zzzLazyDaisy

lou-28 wrote: »

Thanks. I realised that the voluntary redundancy is capped at 12 weeks but its a full week pay per year, not the £430 cap. So works out above statutory.

As long as you receive the statutory redundancy pay, it is entirely up to the employer how any additional payments are calculated.

Dirk_Gently_2

lou-28 wrote: »

Thanks. I realised that the voluntary redundancy is capped at 12 weeks but its a full week pay per year, not the £430 cap. So works out above statutory.

If this is an ex-gratia offer, then the employer is not bound by and laws or any other constraints - they make an offer, and it's up to each employee to decide whether they accept that higher offer or not. If not they just get the lower level of statuary redundancy compensation, but it's just this where there are legally defined limits.

getmore4less

I woner if there is any mileage in age discrimination on the 12 year cap.

LittleVoice

getmore4less wrote: »

I woner if there is any mileage in age discrimination on the 12 year cap.

What do you mean?

getmore4less

The thinking is along the lines of someone with 20 years service will tend to be older than someone with 12 years.

20 years at £430pw is £8600, per week over 12 years is just under £717pw

2 people, one 12 years, one 20 years, on £717pw get the same(£8604) enhanced redundancy at full pay .

The 12 years person would have got £5160 statutory so gets £3444 extra
The 20 years service person gets no extra.

it gets more complicated if the 20year person is over 42 since the enhanced offer capped at 12y would be be below statutory

SarEl

getmore4less wrote: »

I woner if there is any mileage in age discrimination on the 12 year cap.

The short answer is no.

The slightly longer one is that (a) limited "age discrimination" based on service is permissible and (b) the law cannot supercede the law - it can only replace it.

And it is far too late for the long answer...