redundancy pay calculations - is this correct

23 Posts


hi
im currently furloughed, theres not been any indication that i am facing redundancy but from what ive heard from people are are working there is a chance of it, so i wanted to check what i may get. Can anyone advise if the following is correct
assuming redundancy is 1 august and im 33.
ive 9 years service, payments are capped at £538. so £538 x 9 = £4842
pilon, i think i would be entitled to 9 weeks at my weekly pay. 9 x £730 = £6570
unused holiday, ours runs from jan - dec. if made redundant on 1 august then i think i would be entitled to 14 days at roughly £140 so £1960
im owed a bonus payment that should have been paid in april but hasnt been which is roughly £3k.
so in total £16372
the other possibility is the company closes, in this case would the insolvency service pick up the bill and pay me according to the calculations above?
thanks
im currently furloughed, theres not been any indication that i am facing redundancy but from what ive heard from people are are working there is a chance of it, so i wanted to check what i may get. Can anyone advise if the following is correct
assuming redundancy is 1 august and im 33.
ive 9 years service, payments are capped at £538. so £538 x 9 = £4842
pilon, i think i would be entitled to 9 weeks at my weekly pay. 9 x £730 = £6570
unused holiday, ours runs from jan - dec. if made redundant on 1 august then i think i would be entitled to 14 days at roughly £140 so £1960
im owed a bonus payment that should have been paid in april but hasnt been which is roughly £3k.
so in total £16372
the other possibility is the company closes, in this case would the insolvency service pick up the bill and pay me according to the calculations above?
thanks
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Replies
Payments for wages and other money you’re owed are capped at £538 a week (£525 if you were made redundant before 6 April 2020).
I have also seen this so i dont know if the maximum you can claim for from the state is 8 weeks
Wages and other money you’re owed
You can apply for unpaid wages and other money you’re owed by your employer, for example bonuses, overtime and commission.
You’re only entitled to money that’s in your employment contract.
You’ll get up to 8 weeks of money you’re owed. It counts as a week even if you’re only owed money for a few days.
They may opt to keep you employed for your notice period rather than PILON as this means that they can claim the furlough money from the government.
And don't count on the holidays as they may ask you to take these during your notice period.
It's not as if the government has to pay this either when it is the company's responsibility if they make you redundant. I'd say in the current times, it's even more important to receive your full entitlement as getting a new job is going to be even harder.
Companies can pay whatever they like! (subject to the minimum ofcourse)