Statutory redundancy Pay

oliel

my hubby works for royal mail is is worried about redundancy I have googled statutory redundancy rights and it states age 41 and under 1 weeks notice for every year you have worked and and over 41 1 and 1/2 weeks notice.  Can anyone confirm is this is correct colleagues are saying he will only get 3 months redundancy (he had been with the company 20 years).   I went onto the government redundancy calculator and it said he should get about £11k - Id just like to know in the event of it happening how many months grace we would have.  Also am I correct in thinking it would be base on his previous few months earnings too and that it would be tax free and he would also get accrued holiday?  Many Thanks

lincroft1710

oliel said:

my hubby works for royal mail is is worried about redundancy I have googled statutory redundancy rights and it states age 41 and under 1 weeks notice for every year you have worked and and over 41 1 and 1/2 weeks notice.  Can anyone confirm is this is correct colleagues are saying he will only get 3 months redundancy (he had been with the company 20 years).   I went onto the government redundancy calculator and it said he should get about £11k - Id just like to know in the event of it happening how many months grace we would have.  Also am I correct in thinking it would be base on his previous few months earnings too and that it would be tax free and he would also get accrued holiday?  Many Thanks

I think you are confusing "pay" with "notice". As he has been with the company more than 12 years, he is entitled to 12 weeks notice.


He is entitled to a redundancy payment based on 20 years employment. For each year he was employed under the age of 41, he is entitled to one week's pay. Each year age 41 and over, one and a half week's pay. Statutory redundancy pay under £30,000 is not taxable.  Redundancy pay is based on the average earned per week over the 12 weeks before the day you get the redundancy notice.

Brie

my understanding differs from lincroft1710's.

I believe that if he is under 41 at the date he becomes redundant he gets 1 week's pay for each year worked.  So 20 weeks pay.  If he is over 41 then it's 1.5 week's pay for each year.  So 30 weeks pay.  

But that is statutory.  Royal mail may do something better.  Every time my employer announced redundancies over the last 15 years it was always the same thing....we would stop working on X date and start 3 months garden leave (so full pay, still employed, but not wanted at work).  After garden leave, assuming the company didn't feel they'd made a mistake and decided to get us back into the office we would then become officially redundant.  That's the date and salary our payout would be based on and our service was total years with partial years taken into account and 3 weeks pay for each up to 12 years total.  Any time more than 12 years got us 4 weeks pay.  The other twist was that there was a minimum payout of 12 weeks pay so everyone up to 4 years service could end up with the same amount depending on their salary level.  

On the negative side any holiday we accrued had to be taken by the end of the garden leave as it wouldn't be paid.  Lots of colleagues tried to claim that this was illegal but didn't hae a leg to stand on since the company gave us 3 months paid leave which is more than any of us had as an annual holiday allowance.

So I suggest you calculate his salary x 30 weeks to get the right figure.  That will be the minimum.  No tax. No NI.  There may be an option to pay a portion into his pension.  But otherwise he'll have to check what RM actually says about how they are going to calculate as potentially it may be more.  

McKneff

He will get 20 weeks pay for up to 40 plus 1,5 week weeks pay for only one year, so 21,5 weeks. 

chrisbur

Edit
Earlier calculation deleted as on re-reading see that age not mentioned I had assumed 41 from a later post so the redundancy would be
Under 22   half a week per year
22 to 40  one week a year
Over 40 1.5 weeks a year
You have to be the qualifying age for a full year so if when made redundant you are 42 years and eleven months of age that would just be one year at the over 40 1.5 weeks entitlement.
The cap is always your last 20 years so you always go backwards and ignore the younger years.  eg made redundant at 45 years and some months you get 4 years at 1.5 weeks and 16 at 1 week.(assuming 20 or more years service)
https://www.gov.uk/calculate-your-redundancy-pay
I assume this is where you looked and provided you gave the correct details this will give the correct answer.

chrisbur

Nice little chart here....
https://www.jib.org.uk/documents/content/files/Redundancy calculation table.pdf