Redundancy enquiry

everinthered

I'm employed by Royal Mail and in my particular area they're looking at reducing staff numbers. I've just received an information pack from them listing the various options, one of which is to take voluntary redundancy and they have provided me with an estimate of my redundancy payment. This estimate equates to 26 weeks pay.
I am 66 years old and I've worked with Royal Mail for over 8 years. Royal Mail's redundancy terms are the statutory terms with a multiplier of 3.75 (Quite generous, I agree)
I had assumed that with the removal of the default retirement age (DRA) in 2011, my redundancy payment would be assessed in accordance with Royal Mail's normal redundancy terms. In other words, with 8 years of service, I should be offered 45 weeks pay instead of the 26 weeks quoted.
I should add that my knowledge of redundancy procedures is somewhat limited and I must also add that should it come down to it, I will be grateful for the 26 weeks payment as only a few years ago I'd have been shown the door at 65 with zilch to show for it.
I'd appreciate any enlightenment anybody has to offer.

getmore4less

8 years at 66 statutory would be 12 weeks so 45weeks with the multiplier


You need to ask how they got 26 weeks does it say?


Will need a detailed look at the policy, do they offer an enhanced retirement option.

everinthered

Thanks for your answer.
The information pack doesn't give details of the calculation. i am wondering if membership of their pension plan makes a difference. I am not a member by the way so would not benefit from any enhancement to a pension.
Meanwhile I've emailed my query to their help desk and I'm waiting patiently for their reply.

Takeaway_Addict

Won't they just have a cap on the maximum number of weeks pay? Seems to round a number

TBagpuss

Does the figure you have been given state 26 weeks pay, or does it just give a cash figure?

It would be reasonable for you to ask for further details but I can see the following possibilities:

1. That they are using a straight Years of service x 3.75 calculator (not statutory entitlement x 3.75) Your statutory entitlement of 12 weeks pay would already include a 1.5 multiplier. 8 x 3.75 would give 30 weeks, not 26, which brings the discrepancy down.

2. Is there a cap on the earnings they are taking into account? The statutory calculation is capped at £464 per week, so if you earn more than that, the calculation would be 30 (or 12, or 45) x your actual pay OR £464, whichever is lower.

3. Does your normal pay include overtime? Do the figures work out if you recalculate using your basic pay instead?

4. Have your employers included a cap on the total amount payable?

if you are considering taking the voluntary route, then it may be worth speaking to your HR department (or phoning the number in he information pack, if there is one) to ask for clarification.