Should redundancy pay calculation include pro-rata pay?

terrymcb

Hello everyone, has anyone any experience of the following scenario?

I have worked for 15 years with my company. Unfortunately they are outsourcing the whole department. Our redundancy pay isn't too bad. 2.5 weeks pay for every year there.

After having my children, I reduced my hours to 28 hrs a week.
However, for the past year I have been working a 36 hr week , and every week I have to submit a pro-rata form for the additional 8 hrs. (My contract is still for 28hrs).

The redundancy pay calculation is based on the last 12 weeks, so I was expecting it to be based on 36hr weeks which I have worked and been paid for. However I have been told that even though I have worked these additional hrs for the last 12 weeks, my redundancy pay will be based on 28 hr week, and pro-rata hours dont count.

It will make a difference of approx £5K to my payout.

Does anyone know if this is correct??
Thanks so much

lincroft1710

You could say that the extra 8 hrs a week is no different to overtime paid at basic rates. You contracted for 28 hrs but decided to do 8 extra hours a week. But I don't know if this is the correct interpretation

sangie595

lincroft1710 wrote: »

You could say that the extra 8 hrs a week is no different to overtime paid at basic rates. You contracted for 28 hrs but decided to do 8 extra hours a week. But I don't know if this is the correct interpretation

It is. The additional hours are overtime (and never heard them called pro-rata pay before), Redundancy pay is based on basic pay. To have to fill in a form claiming these hours in order to be paid them says that they are not basic hours, and that the employer doesn't guarantee them (which basic hours would be).I can't see anything that suggests another interpretation - unless you get paid those hours when on holiday?

antrobus

terrymcb wrote: »

..Does anyone know if this is correct??
Thanks so much

You are entitled to statutory redundancy pay. The maximum you would be entitled to is 1.5 weeks for each of those 15 years you have worked. It is based on your earnings before tax, subject to a maximum payable of £489 per week.

https://www.citizensadvice.org.uk/work/leaving-a-job/redundancy/redundancy-pay/

If your employer decides to pay you more than statutory redundancy, then can work it out any way they like.

getmore4less

Prorata is probably just a reference to the adjustment needed for the additional hours for the part tie pay.

They may only refer to overtime once doing FTE hours.

Does not matter what its called the intent seem clear it is to adjust pay.