Redundancy Benefits?

LSM_2

Hi,

A question which I have been pondering...

Scenario: Company is makes redundancies; you are asked to stay on longer to help with wind down.

Are you entitled to a "redundancy payment" (notice period of 2 months) on top of the end of employment (i.e. your very last day) or can they give you notice within the wind down & therefore owe you no redudancy?

I would appreciate some help, thanks.

therealdessie

Depends on length of service and contractual agreements, but I would expect two months after being let go in a "normal" situation.

LSM_2

therealdessie wrote: »

Depends on length of service and contractual agreements, but I would expect two months after being let go in a "normal" situation.

Hi,

My contract states 2 months notice, I have worked for them for 5 years... :A

LSM_2

Argh...just found another thread referring to acas. I'll ask them as well!

cazziebo

You get notice and a redundancy payment.

On redundancy, many people get paid in lieu of notice and I think that's what you are referring to? If you work then you would not get pay in lieu. You will still receive the redundancy payment (and if the notice period takes you over the threshold for another year then you gain from that).

If someone is staying on because the business needs them for the wind down, then it is usual to make a payment on top of this, usually dependent on the person staying until the end of that period of time. That payment may compensate for the notice period, or could be less or more - could be nothing. It's not an entitlement - just an extra incentive.

LSM_2

Right;

So lets say:

2 months pay = £1000
5 years service = £1,400
Incentive = £600

At the end of the wind down what would I walk away with? I'm hoping in the case above £3k?

therealdessie

See this link for information on statutory rights. As a rule never expect anything until you get it in writing - and remember you'll still pay tax so if it comes as a lump sum....

cazziebo

Redundancy payments are normally free of tax...

therealdessie

cazziebo wrote: »

Redundancy payments are normally free of tax...

Yep, I stand corrected!

Tax free redundancy pay under £30k

PILON information

LSM_2

Phoned ACAS & they weren't too helpful....

Said that notice period was included in wind down, therefore I wouldn't get that on top of redundancy & incentive?

Is that correct, I may need to get my own HR advice...

I'm trying to work out if the scenario above if i'll walk away with £2k or £3k (these figures are imaginery anyway).

Cheers.