Statutory redundancy pay question - if contract changes 23 July 2020 at 8:27AM in Redundancy & redundancy planning 5 replies 141 views

drew323232

Hi all,
My mother was recently, after 20 years of being a full time employee, put on a part time contract. She was working four months part time before being furloughed due to Covid. She is now back in work, but there is talk of redundancies. She looks likely to be made redundant. As she has been with the company 20 years full time, it is galling to find out her redundancy will be 6.5K less because of the recent contracted hours changed.
Does anyone know if she would be able to claim for the full amount as that was what the vast majority of her time with her employee was? If not, would a contract change of even a week on full time hours, before being made redundant, mean she could claim the full time redundancy?
Thank you.

getmore4less

That's the risk when you agree to go part time you reduce the base for the weeks pay calculation.

week's pay rules are here 
https://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II

drew323232

Thank you @getmore4less
My read of that is that the weekly pay is calculated essentially on the average of the 12 previous weeks?

sharpe106

That is for variable pay, as she is now part time she is now no longer on variable pay, unless she does different hours each week. Her weekly pay is now part time so that is her salary for redundancy. 

drew323232

If she were to start a contract this week full time. then was made redundant in two weeks time, would she receive the full time statutory redundancy?

sharpe106

In theory yes as that will be her new salary. But why would they agree when they are needing to save money.