Question on 'week's pay'

JuC

Hello,


Has anyone any experience of redundancy payments where a company operates a basic level of hourly pay for employees performing a certain role, which is then supplemented by a fixed 'yearly figure' for other employees 'on the next rung' so to speak.


The basic wage and the division of the yearly supplement are then paid monthly, although appear separately on the pay slip. The supplement, however, is not dependent on whether the higher role is being performed, it is paid every month as part of being employed permanently in that position.



The question: can this payment be excluded from a definition of a week's pay when calculating a redundancy payment. I have seen that in the case of employees working irregular hours, even then the previous 12 weeks average is used. In the case stated above there is no variation of contracted hours or actual overall income (except in the case of time off unpaid where the odd hour or so may be deducted from the basic rate)



Thank you.

Comms69

Is it a discretionary bonus?

JuC

No. Its effectively the delineation of being employed in the higher role. A change of job role would have to be agreed for someone to stop receiving it.

getmore4less

There has been a fair amount of case law covering the definition of weeks pay clarifying what's covered by the employment act.

From what you have said it should be included as it sounds like a contractual payment.

Does it get paid when on holiday?

If it does then as holiday pay is calculated using the same "weeks pay" as redundancy thy should be including it.


if not there may be a case to get the holiday pay changes as well.

JuC

Thank you both for taking the trouble to reply.

Part XIV of the ERA does provide guidance on this. I was interested in possible case law, although i understand it is quite specific.

As for the holiday question, its separate of that. Invariable 'yearly' figure paid each month.