Can I claim interest on my redundancy payment?

Burlesque_Babe

I haven't a clue where to post this, so please move if need be.

I am being made redundant at the end of next week (4th May) and my last day of employment for salary purposes will be Sunday 6th May.

I will be due to be paid the 6 days of my salary for May plus just under £17,000 in redundancy. i'm also due money for 2 days holiday but there is a bit of a dispute about that (they don't want to pay me)

I was told today that I would not be paid my last 6 days salary and ny redundancy money until the salary run day at the end of May!

This means I am missing out on 25 days of interest at 2.5% and their (NHS) coffers will gain the 25 days worth of interest.

Can they justify doing this? And can I claim the interest off them?

Skint_Catt

It is standard procedure - I've been made redundant twice and they have kept in with the standard wages run.

You can but try! My last redundancy is in an ISA at 5.6% so you could say yours would be too, lol.

C xx

Burlesque_Babe

I've worked out it is 25/31 days of May at 2.5% interest on £16,700. Seems unfair that I miss out

Jolinar

It does seem off but as someone else said most employers will do the wages at one time and won't do one offs. I'm being made redundant and they will only allow people to leave at the end of a month when we get paid.

Burlesque_Babe

they also do a weekly pay run for temp staff so I've asked HR to confirm that they can't pay me until the end of May and if they can pay me on one of the weekly runs instead.

I work in a large hospital, it surely can't be impossible!!

eamon

Normally you will get two or more payments.
1. Redundancy payment. This is not taxed and will not probably originate from the payroll system.
2. Last payment of salary, taxable etc and will come from payroll. this will also include any holidays etc and PILON again taxable.
3. Any salary payments that may have been missed by payroll and again taxable.

There can be a large time delay between 1 & 2 depending on your payroll cycle. Thats just life.

yours

Eamon