Unfair Dismissal payment and effect on Pension Credit

Iceweasel

Having searched the internet for several days I should like to ask forum members for their opinions and advice, please.

Just after Easter 2011 I was dismissed from my job at age 62, after 8 years, with no notice or reason given.

Owing to my age I have had no response to job applications and realistically have no chance of ever working again.

I filed a claim with the ET within a month of becoming unemployed, and after masses of delays due to my employer 'not being available' on the set date, I have at last in December 2012 received a decision from the Tribunal that I was indeed Unfairly Dismissed.

The ruling stated that I should receive both the Basic Award and Compensatory Award for loss of earnings up to the date of the tribunal and on up to my 65th birthday, which is now less than a year away.

So far I have received not a penny from my employer but I hope for several thousand pounds soonish.

Now here's the rub - since Easter 2011 - I have been receiving Pension Credit for myself and my wife. Also Council Tax paid etc.

I now fear that when I receive my compensation much or all of it may be gobbled up by the need to repay the Pension Credit I've recieved, and lord knows what else.

However I have no idea of what the award will be so there is a chance I might go from being currently in debt to having more than the savings threshold - so could lose the Council Tax payments, NHS prescriptions, Dental Treatment etc.

Am I worrying needlessly? Is there anything else I can do or apply for?

I am losing sleep over this.

Thanks in advance for your comments.

Pricivius

Do you have a date set for a Remedy Hearing? This is where the Tribunal will decide how much your former employer must pay. If so, you will be asked to provide your national insurance number, if you haven't already. DWP is then asked by the Tribunal how much you have received in payments that would not have been made to you if your employment had continued. Your employer must then deduct this amount from the total and pay it direct to DWP. You then get the balance.

If you were represented at the hearing, your representative should be able to help you with this.

Edit to add - on second reading, it looks like you already have the remedy so check to see the deadline for payment.

Iceweasel

Thanks for that Pricivious - so the employer deducts PC from the compensation.

No - No Remedy date set.

As I understand it the Trinunal is waiting to see if both sides can come to an acceptable agreement.

Trouble is my rep is always pressed for time and I get the feeling that I'm on a sort of 'conveyor belt' in the system.

I have a list of questions / concerns for him:

Tax on the compensation payment.
Nat. Ins.
Reduced work pension due to less contributions.

Anything else I need to raise or be aware of?

pmlindyloo

May I also add that there is no savings limit for Pension Credit. The first £10000 is ignored and thereafter £1 is taken off from each £500 above this limit.

You can have considerable savings and still be entitled to Pension Credit.


You only need to receive £1 per week of Pension Credit to be entitled to full HB and CTB plus the other benefits.

Pricivius

I'm afraid it doesn't make sense that the Tribunal are waiting for the parties to reach agreement. If the Tribunal has ordered that the employer must pay as if you we're employed up to retirement at 65 then that is what they must pay. Was this not discussed at the hearing as it should have been and figures should have been agreed. You should have provided a Schedule of Loss setting out your losses for your employer to agree or argue against during the hearing. This should have included any claim you were making regarding your pension and this should have been part of the award made by the tribunal.

I'm a little confused, to be honest - when you attended the hearing, was this not all discussed?

Any comp payment will be based on net figures so you will not pay tax on it. The basic award is based on gross figures but is not taxed.

Iceweasel

I too am confused as I initially thought that I would leave the tribunal with everything all cut and dried.

My rep did lodge a 'provisional quantification of loss'.

The judgement was unanimous that I was unfairly dismissed.

If I may quote from the Judgement - "in the first instance the parties representatives should be afforded some time to try and agree an appropriate award of compensation, and failing which a Remedy Hearing would be fixed."

In my ignorance of ET procedures I though this was normal - but now I am concerned that even more delays will take place.

I can't wait for the meeting with my rep next week - to get a clearer picture of what comes next.

Pricivius

Okay. That makes a little more sense. Your schedule of loss should have set out what you were claiming, including pensions loss which can be very hard to quantify. Your employer should now be looking at this and deciding whether your figures are right. It sounds as though there was some dispute over the actual figures...

As for benefits, if the award is ordered through the tribunal, the DWP will give your employer a figure to deduct as set out above. Otherwise, best to tell all parties involved to be sure you are being paid the correct sums and are not overpaid.

Your rep is supposed to be representing you so make sure you understand what's happening and ask all the questions you need to ask. They cannot represent you properly of they are doing a half-baked job of it.