redundancy pay calculations - is this correct

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


Comments

  • 3card
    3card Posts: 437 Forumite
    Name Dropper First Anniversary First Post
    markmh said:
    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


    If the company goes bust and you claim off the state this is what I have copied and pasted from the gov.uk site
    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.


  • daveyjp
    daveyjp Posts: 12,501 Forumite
    First Post Name Dropper First Anniversary
    OP.  There is no weekly cap if the company is paying. 
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Name Dropper First Post First Anniversary
    daveyjp said:
    OP.  There is no weekly cap if the company is paying. 
    There is for redundancy pay.

    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.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • daveyjp
    daveyjp Posts: 12,501 Forumite
    First Post Name Dropper First Anniversary
    Masomnia said:
    daveyjp said:
    OP.  There is no weekly cap if the company is paying. 
    There is for redundancy pay.


    There is only a statutory maximum.  Companies and employees can negotiate redundancy payments over and above this figure.
  • loony767
    loony767 Posts: 21 Forumite
    First Post First Anniversary Combo Breaker
    While I know the government limits the maximum amount you can receive to c£500 per week and c£16000 in total, why are these limits even in place? Due to my age and salary before being made redundant, I would have been due c£2700 but thanks to the government advisory limits, I only received c£1600. I did ask for more due to the difficulty I knew I'd have securing a new job, but the company turned me down flat saying "we only pay what the government guidelines state". Cheapskates. The company used coronavirus as an excuse to cut costs even though they were doing better than they were last year, just "not as well as hoped".
    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.
  • Comms69
    Comms69 Posts: 14,229 Forumite
    Name Dropper First Anniversary First Post
    loony767 said:
    While I know the government limits the maximum amount you can receive to c£500 per week and c£16000 in total, why are these limits even in place? Due to my age and salary before being made redundant, I would have been due c£2700 but thanks to the government advisory limits, I only received c£1600. I did ask for more due to the difficulty I knew I'd have securing a new job, but the company turned me down flat saying "we only pay what the government guidelines state". Cheapskates. The company used coronavirus as an excuse to cut costs even though they were doing better than they were last year, just "not as well as hoped".
    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.
    No - those limits are for govt pay outs.

    Companies can pay whatever they like! (subject to the minimum ofcourse)
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