Questions about my Redundancy Package

fdama

Hi,

I was made redundant just over a week ago from a large IT services company after 7.5 years service. They provided me with details about the redundancy package on the final telephone meeting I had with them at 4pm of the last day when the redundancy was confirmed. I had asked them a week in advance what the redundancy package will be and their reply was that they pay enhanced redundancy pay and that the figure will be confirmed on confirmation. I asked them for a copy of the document containing the company redundancy policy and their reply indicated there wasnt one. They instead referred me to the statutory pay which is what I would get as a minimum. 

They sent the redundancy confirmation letter at the end of the last day which included what I will get. But what I find strange is that there does not seem to be any details of how they calculated the enhancement even after I had previously asked for it. They also overlooked the fact that the pay cap has increased from £538 to £544 if the redundancy occurred after 6th April 2021 and instead based the calculation on £538. So I will need to inform them of this.  

This is from the letter:

"In addition, you will receive the following payment as part of the severance terms which have been finalised: Company Redundancy Payment: £5,887.86   
.....

"You will also be entitled to the following payment as listed below, which is taxable: Payment made in lieu of notice (7 weeks) £4,906.55"


So this means that the enhancement amounts to 2,121.86 but does not state what this is based on. Is this normal? Is it also normal that details of company redundancy pay is not documented anywhere or that I have not received one? 

They also talk mention ".....severence terms which have been finalised......"as in the extract above. I haven't been provided with details of the severence terms. Should these have been sent to me? 

Are redundancy packages usually negotiated? There was no opportunity for me to negotiate the package. I will receive the payment at the end of the month. 

Many Thanks.    

daveyjp

Your redundacy terms and conditions including payment and breakdown should have been in writing and a contract provided.

fdama

daveyjp said:

Your redundacy terms and conditions including payment and breakdown should have been in writing and a contract provided.

Thanks for your reply. All I received was a letter confirming redundancy with what I will receive which is the redundancy pay (including 'enhancement' which I dont know how it was calculated) and notice pay. It also had containing request to return equipment, etc. 

I have not been provided with t&cs, severence terms or a contract. What would the contract contain? There was nothing I was asked to sign. Have they not done this properly?  

getmore4less

They should provide a breakdown

Any holiday  pay due?


Statutory would be 7 weeks adjusted for age if 42 or older

typical enhancements might be
no cap
extra weeks

~£2,100 is very close to 3 weeks full pay by the looks of it

Thrugelmir

fdama said:

Are redundancy packages usually negotiated? There was no opportunity for me to negotiate the package. I will receive the payment at the end of the month. 

Not if you are being redundant. Statutory rules apply. Anything above is discretionary. 

When the payment is processed you should receive a payslip which will provide a breakdown of the figures. Hopefully the payroll dept will have amended the statutory rate to the correct amount. 

klawley36

When it's an enhanced package rather than government statutory they will not disclose how this is calculated. They are not really at liberty to because they are offering you more than they need to therefore it's not negotiable either. 
To receive the enhanced package they will need to send you an agreement letter, which normally you need to have a solicitor check over and sign to say they have done so. You will then need to sign and return it to your company and generally most companies will pay the legal costs up to a certain amount. 

You could try speaking to ACAS on this also.

Good luck 

getmore4less

There is no legal requirement to sign off an enhanced package.


Everything is negotiable.

The company has the fall back that they just pay you off and let you make the next move which is take them to court.
(if they have done the process properly and paid at least what you are owed not much point)

Thrugelmir

klawley36 said:

You could try speaking to ACAS on this also.

For what purpose. ACAS are not a negotiating service nor has the company infringed any requirements. 

krusty101

klawley36 said:

When it's an enhanced package rather than government statutory they will not disclose how this is calculated. They are not really at liberty to because they are offering you more than they need to therefore it's not negotiable either. 
To receive the enhanced package they will need to send you an agreement letter, which normally you need to have a solicitor check over and sign to say they have done so. You will then need to sign and return it to your company and generally most companies will pay the legal costs up to a certain amount. 

You could try speaking to ACAS on this also.

Good luck 

You’re talking about a settlement agreement. Enhanced redundancy doesn’t have to be done via that route, although it can be.