Redundancy pay whilst furloughed

wendy2408

I am currently furloughed but have now been told my position is being made redundant. I am a company director being paid by PAYE and a dividend. I have been with the company for almost 10 years. Will my redundancy/notice pay be the reduced furloughed pay?

Comms69

No, it will be based upon your normal salary. (or potentially a higher figure if that is what you negotiated in your contract. Also dont forget notice pay and annual leave pay)

wendy2408

Is it different for directors?

Comms69

wendy2408 said:

Is it different for directors?

What do you mean? Is what different?

wendy2408

The redundancy payment.ie number of weeks notice pay and also what is classed as “pay”. Does it go on my salary or just what was paid through PAYE

Comms69

The statutory minimum is the same across the board. Your contract may have a better deal than that. (eg NHS pays 1 months per year of service)

I dont understand what you mean by salary and paid through PAYE? 

wendy2408

A director can take their pay as a part dividend and the rest through paye. Thank you for your help.

Comms69

wendy2408 said:

A director can take their pay as a part dividend and the rest through paye. Thank you for your help.

Well technically anyone can be paid a divident. But that isnt salary. 

JReacher1

You’ll be paid redundancy based on your salary which will exclude your dividend payments (unless there is something in your contract to cover this scenario)

jonnyseka

I'm also in the same position., albeit  I'm not a director.  The question  i have is about paid notice. Of which  I'm  entitled  to 12 weels. Im currently  on 80% furlough.   Should the paid notice  be 100% of my wages?

wendy2408

My figures show that the notice period is paid at your full rate ie 100%