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Full Time or Part Time Redundancy Calculation
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Grumpy_chap
Posts: 18,218 Forumite


Hello,
My wife is currently on furlough and the company said that will be until the end of June, when the scheme expires. Her company have now written to say that after June, they expect to need to consult on redundancies - it seemed as though that was saying the consultation would start from 1st July, but may be they meant the consultation will run and the actual redundancies will be at the end of June.
Anyway, as far as we can tell, my wife will be still paid as follows:
What we don't know is whether the items that are based on a weeks' pay are based on full time pay or part time. The thing is, my wife joined the company originally on full-time and some while back they had a redundancy situation but through the consultation period agreed to put my wife on 50% hours as an alternative to redundancy. This was for temporary period 3 - 6 months with the aim of returning to full time, but it has dragged out and just become the norm though nothing was ever agreed etc.
Will the redundancy pay now be calculated on 50% hours or 100% hours? It seems unfair that my wife gets nothing in compensation for the original reduction in hours.
Overall, my wife's employer is being fair in their approach.
My wife is currently on furlough and the company said that will be until the end of June, when the scheme expires. Her company have now written to say that after June, they expect to need to consult on redundancies - it seemed as though that was saying the consultation would start from 1st July, but may be they meant the consultation will run and the actual redundancies will be at the end of June.
Anyway, as far as we can tell, my wife will be still paid as follows:
- Furlough until end of June
- Paid while still employed, i.e. during the consultation period
- Paid during notice period, or pay-in-lieu
- Paid at the end of employment for TOIL overtime plus accrued annual leave until the last day of employment
- 1 1/2 weeks' pay for each year she has worked there.
What we don't know is whether the items that are based on a weeks' pay are based on full time pay or part time. The thing is, my wife joined the company originally on full-time and some while back they had a redundancy situation but through the consultation period agreed to put my wife on 50% hours as an alternative to redundancy. This was for temporary period 3 - 6 months with the aim of returning to full time, but it has dragged out and just become the norm though nothing was ever agreed etc.
Will the redundancy pay now be calculated on 50% hours or 100% hours? It seems unfair that my wife gets nothing in compensation for the original reduction in hours.
Overall, my wife's employer is being fair in their approach.
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Comments
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It will most likely be on the part time basis.
Whatever the 'plan' was, her hours were reduce by 50% and she agreed to this.
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Thank you @Comms69 - that is what we sort of expected, but we did wonder whether there is a rule on it (either way).
I have been researching on the internet and realised it might not make a difference as, apparently, there is a statutory cap on what is called a "weeks' pay" so it is not necessarily what normal pay is per week.
Unable to find straight away what the cap is on a "weeks' pay", so more searching for me.0 -
There's no 'cap' as such. First 30k is tax free0
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Hi,
sorry to hear your wife is being made redundant you can calculate the statutory redundancy pay on the gov.co.uk website but yes unfortunately it will be her part time pay, I’m in sort of the same situation where I have been in my employment for 20 years originally full time but now part time, when she leaves makes sure she has all her holidays paid in full remember and to include the bank holidays as most employees when you are full time give you 28 days (including 8 days for bank holidays) which leaves you with 20 but when you leave they don’t include the bank holidays and if you haven’t been able to claim for today being a bank holiday and the 2 at Easter being on furlough, again as she is part time the government site will work out how many holidays you have accumulated up until the time you leave, hope it works out well for you0 -
Thanks for the comments so far.
I just found the "cap" on the CAB website. It says cap on weekly pay at £538, so anything above that is disregarded.0 -
Following on from this, my wife has now received a letter that her job is at risk of redundancy and will have a consultation meeting (by telephone) this afternoon. The consultation period will be two weeks. Is that a normal time period for a consultation period?0
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Depending on how many are at threat of redundancy. Normally its 30/45 days accordingly.0
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My wife only works at a small company, so it is probably the shorter period that would apply.
Anyway, her call today went OK. They will keep her on furlough, with the 20% top up until 30th June. This is more than 45 days, so would cover the longer consultation period. If redundancies still apply at that time, then notice period would be from 1st July. If the CJRS is extended, they will consider extending furlough longer, and notice may follow the end of any longer furlough period (but that is all speculation as there is no extension to CJRS right now).
Considering the wider environment, it seems like the company are being very fair.
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They have gone above and beyond what they have to so yes being fair, and is good that they will extend it if the CJRS is extended too. Might be worth polishing the old c.v though just in case.
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Thank you, we wait to see the full detail of the extended furlough scheme and whether the company will confirm the redundancy (assuming that is the outcome - it currently looks certain but things may change) as starting after the extended furlough. That would be very helpful even if the company stop doing the top-up.
I have to admit, I was confused by the announcements on the news today. Initially, it said furlough extended until end of October, but later report suggested it was at 80% until end August and then companies would need to contribute more. That latter part was mixed with a comment about furlough still being available in some part with staff working part-time (rather than the 'no work if furloughed' rule). I will look for the dust to settle and check details towards the end of the week.0
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