Sick to redundancy

webbo1981

Hi I have been with my employer for eleven years since September 2001

Since February this year I have been off ill

Due to the unfortunate news of not being able to return to work in the near future and having a very understanding and helpful employer they are going to offer me a voluntary redundancy package in the new year as the firm is making redundancies anyway. May I ask does anyone know what I am likely to be entitled too financially? Apologies for asking but I am just trying to prepare for the near future financially

Thanks

zzzLazyDaisy

You can calculate statutory redundancy here

https://www.gov.uk/calculate-your-redundancy-pay

In addition you are entitled to receive full pay during the notice period, even if your pay has stopped or reduced owing to the length of your sick leave. Your statutory notice period will be 11 weeks. However this provision does not apply if your contractual notice period is longer than statutory notice (eg if your contract provides for a three month notice period)

Also, statutory holiday entitlement continues to accrue during sick leave, so you are entitled to be paid for any outstanding statutory holiday leave.

Takeaway_Addict

Just as a side, its unlikely they will do it as a redundancy and more likely to do it as a compromise agreement so I would be expecting more than statutory monetary wise.

webbo1981

Thank you for your responses

They have been great to me so what ever they offer I appreciate. However I assume, based on the replies, I will receive the minimum

Redundancy pay
Notice in lieu pay
Untaken holidays from Feb 29th to December 31st

Many thanks

LittleVoice

webbo1981 wrote: »

Thank you for your responses

They have been great to me so what ever they offer I appreciate. However I assume, based on the replies, I will receive the minimum

Redundancy pay
Notice in lieu pay
Untaken holidays from Feb 29th to December 31st

Many thanks

As your statutory notice period is 11 weeks, this will take you beyond 31 December. You accrue statutory holiday up to whatever time your employment is actually terminated.

If your employment ends after 1 February, the cap on a week's pay is £450.

webbo1981

Is the £450 cap for stat redundancy? Isnt it currently £450?

Thanks

zzzLazyDaisy

webbo1981 wrote: »

Is the £450 cap for stat redundancy? Isnt it currently £450?

Thanks

The cap for statutory redundancy pay is currently £430, rising to £450 on 1st Feb 2013

There is no cap for payment in lieu of notice. If the pay in lieu is paid as a lump sum on termonation, it *may* be paid gross and free of tax, but this depends on whether the pay in lieu is a contractual right. You would have to discuss this with your employer.

If your employment is terminated after the notice period and you receive your notice pay through the payroll, it is subject to tax and NI in the normal way, as is any accrued holiday pay.

webbo1981

I think the plan my employer has is to finish me/make redundant at the end of February 2013. I am on a 12 month full sick pay which runs out at the end of February 2013. Then making me redundant. However they are getting the figures to me at the start of Jan.

SarEl

Voluntary redundancy doesn't exist in law. Therefore there is no entitlement to anything! This is, in law, a mutually agreed termination. Whatever you agree is what it is!

zzzLazyDaisy

I think you and I will have to disagree on this one SarEl

It is my view that, since the employer is in fact in a genuine redundancy situation, it can select OP for redundancy in place of some other employee who would otherwise have to be made redundant instead. Given OP's agreement, I would say that redundancy is an option in this case.

Though if I was advising the employer, I'd be insisting on a compromise agreement....

webbo1981

Again thank you for your responses

Just to clear up any confusion I may of caused my employer came out to see me. What they have said is they are happy to leave my contract of employment with them as it is however they are making redundancies so if I wanted to be put into that to help me out financially they will. I am unsure whether I am being nieve but I believe they are trying to help me financially rather than just dismiss me, which if they did dismiss me I would receive less money than redundancy from what I can work out

I am awaiting a letter of figures from them, would it be ok to put these figures on here for help and advice to as whether they are correct or not?

Kind Regards