IVA & Redundancy payment ... bit unclear!

MrsB2100

Morning all,

We are in year 4 of an IVA at present with Grant Thornton. Unfortunately, Mr B has had a notification of potential redundancy and the likely outcome will be that he'll be made redundant in the next couple of months. The Company will be paying 1 week for every completed year of service - he's been there 4 years, so basically, 1 months pay, plus 1 month PILON, I believe. All told, I think it works out to be about 3 months take home roughly, as there will be no income tax on some of it.

I've gone through the IVA contract, found the clause for redundancy and it states that: "In the event of redundancy, I will inform the supervisor within 14 days of receipt (done that) ... Inform my supervisor of the value of any redundancy payment ... (will do that) ... pay within 14 days any amount in excess of 6 months take home pay (won't get that) ... "

Then it goes on to say: "At the point new employment is obtained the supervisor will review my IVA contributions and at that point, there will be an expectation that any remaining redundancy funds will be paid into the IVA ..."

So, my question is - are we entitled to keep any of the redundancy money, if he should manage to get another job in the week or so after the redundancy? It's probably glaringly obvious to everyone except me - but it depends on how you read it, I suppose.

Ideally, we would need to replace our 40+ year old boiler (which we've not been able to do) with the money from the redundancy, IF he gets another job relatively quickly, but I don't know whether thats feasible.

Does anyone have any experience with this kind of thing? Any help would be appreciated

Thanks!

mwarby

Best asking your IVA firm that

I suspect that in the event of him finding work early on, the remainder would need to be handed over.

It's worth keeping the company informed and perhaps put redundancy in saving and transfer out the money a week or month at a time(so you don't spend more than you should by accident.

Record all job finding expenses and present that when work is found, hopefully you can keep some or all thats left, but if you can't you've got it ready.

mwarby

MrsB2100 wrote: »

Morning all,

I've gone through the IVA contract, found the clause for redundancy and it states that: "In the event of redundancy, I will inform the supervisor within 14 days of receipt (done that) ... Inform my supervisor of the value of any redundancy payment ... (will do that) ... pay within 14 days any amount in excess of 6 months take home pay (won't get that) ... "

Then it goes on to say: "At the point new employment is obtained the supervisor will review my IVA contributions and at that point, there will be an expectation that any remaining redundancy funds will be paid into the IVA ..."

My interpretation

if you get 7 months redundancy, find work in 3 months - 1 months worth(1 7th) gets handed over in 14 days, 3 months (3 7ths) gets handed over when work starts(probably just after first payday)

if you get 4 months and ind work in 3 months - nothing handed over in first 14 days, 1 months (1 quarter) gets handed over when work starts

MrsB2100

Thank you! I was thinking would have to be handed over if he's lucky enough to walk into another job straightaway ...

I'll give GT a call to clarify anyway.