Voluntary Redundancy advice.

Thrugelmir

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Without inducement insufficient people will step forward. VR is an easier process with which to reduce headcount quickly. 

Comms69

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

Turbo_Ben

Comms69 said:

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

There is an incentive to take VR, but it is in addition to statutory pay and not relevant here, so I didn't mention it.

getmore4less said:

The termination date is the last day of employment,  this can be different to other dates used for some calculations, redundnacy service is one of them.
employment act covers all the various dates


If they are using the statutory redundancy method to calculate the relevant date for redundancy then any unused statutory notice gets added to the termination date and you count full years back from that date.


As you are getting full 5 weeks PILON and a termination date of 31st Oct the date for calculation of redundancy will be Sat 5th December.
As pointed out you already have 6 years for redundancy if your last day is the 31st Oct.

*Links in above quote have been removed as I have not been a member for long enough to post links*

I spoke with ACAS this morning and this is pretty much what they told me.

The company have now revised their offer as a "good will gesture" and given me an extra 2 weeks pay, though they won't acknowledge I have done 6 years service. The only thing I still question is payment for unused holidays, but at this point I can't be bothered to argue further with them.

getmore4less

Statutory pay out would be 

5 weeks notice pay
6 years service for redundancy(No of weeks paid depends on age, capped at £538pw)
Accrued unused holiday till the termination date(they still have time to have you take that)

Unused holiday is up to the date of termination, does not have to include(although some companies do) any accrued during statutory notice given as PILON.

The service for the notice period is at the date of notice which they can do as 5 years as you don't complete the 6th year till the end of the last day. 

As it is voluntary you decide when the number is enough and take it.

avawat20

Your pay in lieu is in lieu of notice. Therefore if your end date is before the 6 year service date then you don't have 6 years service. You have been paid 5 weeks upfront instead of being asked to work the 5 weeks.

Mickey666

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

VR has to offer at least the same financial benefit as statutory otherwise employees would not volunteer.
As for consultation, I’ve never found it a difficult or expensive process . . . Though admittedly I’ve never had unions involved, which I can imagine might slow things down and increase costs.  VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

Comms69

Mickey666 said:

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

VR has to offer at least the same financial benefit as statutory otherwise employees would not volunteer.
As for consultation, I’ve never found it a difficult or expensive process . . . Though admittedly I’ve never had unions involved, which I can imagine might slow things down and increase costs.  VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

I mean technically it doesnt have to, for example it meant they didnt have to abide by non-compete clauses for example but generally i agree. 

Indeed it's risky. 

Comms69

getmore4less said:

Statutory pay out would be 

5 weeks notice pay
6 years service for redundancy(No of weeks paid depends on age, capped at £538pw)
Accrued unused holiday till the termination date(they still have time to have you take that)

Unused holiday is up to the date of termination, does not have to include(although some companies do) any accrued during statutory notice given as PILON.

The service for the notice period is at the date of notice which they can do as 5 years as you don't complete the 6th year till the end of the last day. 

As it is voluntary you decide when the number is enough and take it.

The cap only applies to the govt redundancy scheme. There is no cap generally. 

getmore4less

Comms69 said:

getmore4less said:

Statutory pay out would be 

5 weeks notice pay
6 years service for redundancy(No of weeks paid depends on age, capped at £538pw)
Accrued unused holiday till the termination date(they still have time to have you take that)

Unused holiday is up to the date of termination, does not have to include(although some companies do) any accrued during statutory notice given as PILON.

The service for the notice period is at the date of notice which they can do as 5 years as you don't complete the 6th year till the end of the last day. 

As it is voluntary you decide when the number is enough and take it.

The cap only applies to the govt redundancy scheme. There is no cap generally. 

i made it clear 
Statutory pay out would be......

Comms69

getmore4less said:

Comms69 said:

getmore4less said:

Statutory pay out would be 

5 weeks notice pay
6 years service for redundancy(No of weeks paid depends on age, capped at £538pw)
Accrued unused holiday till the termination date(they still have time to have you take that)

Unused holiday is up to the date of termination, does not have to include(although some companies do) any accrued during statutory notice given as PILON.

The service for the notice period is at the date of notice which they can do as 5 years as you don't complete the 6th year till the end of the last day. 

As it is voluntary you decide when the number is enough and take it.

The cap only applies to the govt redundancy scheme. There is no cap generally. 

i made it clear 
Statutory pay out would be......

I'm pretty sure that isnt the case. I'm pretty sure the cap is only for the govt redundancy scheme, not stat redundancy.