Clueless - help please!

Clydebob

Good morning

I am hoping for some help as I am really clueless to this and keep getting lots of different advice.

I am 61 and I have worked for the same building company for 29 years, signed a contract two years ago from the company stating this and the full time hours I work.

I feel redundancy will be imminent as there is no work on as such and although I am being paid I am taking days off as holiday when there is no work on. I feel the next step I will be asked to go part time.

I have done a redundancy calculation and I should be entitled to £12,000 apx.

I am not sure what to do if he asks me to go part time – will it change this. My employer is in his 80’s and no family to continue to business.

So the advice I would very much appreciate is:

What if he asked me to go part time?

What if he doesn’t pay the redundancy (business folds, my employer passes away…) Am I correct in thinking that the Government pays my full redundancy?

Am I entitled to Job Seekers/Housing Benefit (My retirement age is 67) Do I have to use all of my redundancy before I can claim?

Am I entitled to 12 weeks full notice/full pay if he gives me notice of redundancy?

Finally, how does the process of claiming redundancy work – do I ask my employer for it or should he do it automatically and at what point do I contact the government to claim if he doesn’t pay for some reason? Also, how long does the process take to get the payout from either my employer or the government?

Many thanks and would appreciate any advice.

sangie595

If you reduce your hours of work and become a part-time employee, then any redundancy entitlement will be likewise reduced. Redundancy pay is based on your contractual hours at the time of redundancy (there are some different rules fr variable hours, but they don't apply to this situation).


You are not correct in assuming that the government scheme automatically pays redundancy if the employer does not. If that were the case, then no employer would ever pay up! Is your employer an actual company - or the individual acting as a sole trader? Broadly speaking, the employer is always responsible for redundancy pay, but if the company is dissolved, then the assets of the company (or the individual) are the first port of call for redundancy pay. There are situations in which the government scheme does not pay up. Most notably when an employing company ceases trading but does not get declared insolvent. But without an actual situation to comment on it is hard to give you accurate advice beyond may be / maybe not.


JSA, assuming you qualify (it would appear you do) would be paid for 6 months provided you are looking for work. Other benefits are means tested and depend on your savings and household income.


Yes, you should be given 12 weeks notice of redundancy. It will only be on full pay if you remain full time.


To be honest, I think that your best option right now is to ask the employer their intent. It's hard to say what might be the case on some of this detail.

Undervalued

Clydebob wrote: »

Good morning

I am hoping for some help as I am really clueless to this and keep getting lots of different advice.

I am 61 and I have worked for the same building company for 29 years, signed a contract two years ago from the company stating this and the full time hours I work.

I feel redundancy will be imminent as there is no work on as such and although I am being paid I am taking days off as holiday when there is no work on. I feel the next step I will be asked to go part time.

I have done a redundancy calculation and I should be entitled to £12,000 apx.

I am not sure what to do if he asks me to go part time – will it change this. My employer is in his 80’s and no family to continue to business.

So the advice I would very much appreciate is:

What if he asked me to go part time?

What if he doesn’t pay the redundancy (business folds, my employer passes away…) Am I correct in thinking that the Government pays my full redundancy?

Am I entitled to Job Seekers/Housing Benefit (My retirement age is 67) Do I have to use all of my redundancy before I can claim?

Am I entitled to 12 weeks full notice/full pay if he gives me notice of redundancy?

Finally, how does the process of claiming redundancy work – do I ask my employer for it or should he do it automatically and at what point do I contact the government to claim if he doesn’t pay for some reason? Also, how long does the process take to get the payout from either my employer or the government?

Many thanks and would appreciate any advice.

If you are 61 now then your state pension age should be 66 and not 67.

Clydebob

Thank you for your answer. Sorry I should have explained its a Limited company and he employs 4 of us in total. I am just trying o learn as much as I can and thanks again for your comments. What is the difference of a sole/ltd company regards redundancy and also when does the government pay, in what situation?

Thanks again

sangie595

The difference is that the company employs you and only its assets are available to pay any unpaid bills. A sole trader is personally liable and so the individuals assets are available (i.e. their personal property). With a company it is often harder to get at any assets as they are usually stripped from the company, if there are any to start off with.

The government scheme can vary from several weeks to much longer, if ever, depending on their assessment of the situation. They will not simply pay up just because the employer doesn't. As I said, there are different situations and I am not going to sit down and list every variable. The most common one is that the company simply ceases trading but does not declare insolvency. Effectively it just sits there and does nothing at all. If the company does not enter insolvency then the RPS will not pay out. That would mean that you would have to take legal action against the company, but that is often not worth doing as the company simply won't pay. You would be forced to enforce insolvency yourself, and that would cost you so much that it isn't worth doing - it can be a bill of many £1,000's, and you wouldn't be able to claim that money back from anywhere.

getmore4less

would any/all of the 4 of you be willing to take the company over and run it.

Could you generate more business

that may be a way to save all the jobs if the current owners is winding it down

sangie595

Assuming, of course, you can afford to buy it. I doubt the current owner would be willing to just hand it over.