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Redundancy Date Confusion

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Hi. Just a brief outline - I was informed last week that my position is at risk of redundancy.  The company are centralising their accounts departments from being based at sites all over the country to one site 100 miles away from where I am based - so I am definitely losing my job. We've started consultation which will end on 05/05/2021 and will then move in to our notice period, which has been extended to 3 months for everyone as they want us to help with the 'transfer of knowledge' to the new site. End of the notice period is set as 06/08/2021.

My question is which date counts as my redundancy date? Is it 05/05/2021 which is when we will get our letters to say we are being made redundant, or is it 06/08/2021 at the end of our notice period? I only ask as we've been told our weekly wage used to calculate redundancy pay will be calculated using an average of the 12 weeks prior to our redundancy date and my wage can fluctuate a bit due to bonuses etc.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 22 March 2021 at 2:24PM
    The rules for statutory payments are laid down in the employment act.

    https://www.legislation.gov.uk/ukpga/1996/18/contents

    if they are terminating you on the 6/8/2021 then that is the date used for the service calculation working back full years from that date with the 0.5,1,1.5 weeks for the relevant years(up to 20years service) based on age (42 is the magic age for 1.5weeks kicking in).

    The weeks pay, I can never remember the exact details, so here is the starting link, you need to work through  the back  references to work out which applies. redundancy are 135-181. 
    termination rules are 226, so I think it is (5) that applies as that references back to 162
    https://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/II

    IT gets a little confusing because it talks about what happens with PILON situations


  • Great - thanks for your help. Reading through that it seems as though it will be 06/08 they will use for the calculation, which is a shame as I've had a decent couple of months for bonuses which would bump my payout up a bit.

    I need to ask what the situation is if I leave during the notice period. I know I'll still get my redundancy pay but just want to see where they stand on the calculation. I want to leave on decent terms but would rather find a new job ASAP after 05/05 and not stick around to teach someone how to do my job remotely in a 'transfer of knowledge'.
  • General_Grant
    General_Grant Posts: 5,282 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Great - thanks for your help. Reading through that it seems as though it will be 06/08 they will use for the calculation, which is a shame as I've had a decent couple of months for bonuses which would bump my payout up a bit.

    I need to ask what the situation is if I leave during the notice period. I know I'll still get my redundancy pay but just want to see where they stand on the calculation. I want to leave on decent terms but would rather find a new job ASAP after 05/05 and not stick around to teach someone how to do my job remotely in a 'transfer of knowledge'.
    How do you know that?
  • daveyjp
    daveyjp Posts: 13,558 Forumite
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    Unless you have agreement saying otherwise if you leave before the official redundancy date you are at risk of getting nothing.
  • jedthehumanoid
    jedthehumanoid Posts: 56 Forumite
    Fourth Anniversary 10 Posts
    edited 22 March 2021 at 4:52PM
    Great - thanks for your help. Reading through that it seems as though it will be 06/08 they will use for the calculation, which is a shame as I've had a decent couple of months for bonuses which would bump my payout up a bit.

    I need to ask what the situation is if I leave during the notice period. I know I'll still get my redundancy pay but just want to see where they stand on the calculation. I want to leave on decent terms but would rather find a new job ASAP after 05/05 and not stick around to teach someone how to do my job remotely in a 'transfer of knowledge'.
    How do you know that?
    daveyjp said:
    Unless you have agreement saying otherwise if you leave before the official redundancy date you are at risk of getting nothing.
    It has been discussed during the consultations and we were explicitly told that we will still receive our lump sum (1 week for every years service etc.) if we leave during the notice period. We have been offered an enhanced amount to stay until 06/08 and complete the transfer to the new site, which we would forfeit but the basic amount is still payable.

    EDIT - I've just found the exact wording on the document we were given...
    Q. What happens if I choose to leave during the notice period?
    A. You will forfeit some of your notice pay but any redundancy payments will still be made.
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