Redundancy pay in installments
jon200
Posts: 64 Forumite
Hi,
The company i work for are making around half the staff redundant, i am not yet one of them, but feel i may be soon.
I was talking to a few of the unlucky people and they say the MD has asked them to take the redundancy money in installments rather than up front (not sure on how long the period will be), and also to waive the consultation period (i actually think he told them there would be no consultation period rather than ask them).
The MD had told them off the record, that if any of them contest the installment plan and insist on their money up front, then he will just close the company down completely.
I was hoping someone could clarify the legality of what he is doing and also how the redundancy would work if he did just close the company down.
I could not afford to take a payment in installments, so would need it all up front.
Thanks in advance.
The company i work for are making around half the staff redundant, i am not yet one of them, but feel i may be soon.
I was talking to a few of the unlucky people and they say the MD has asked them to take the redundancy money in installments rather than up front (not sure on how long the period will be), and also to waive the consultation period (i actually think he told them there would be no consultation period rather than ask them).
The MD had told them off the record, that if any of them contest the installment plan and insist on their money up front, then he will just close the company down completely.
I was hoping someone could clarify the legality of what he is doing and also how the redundancy would work if he did just close the company down.
I could not afford to take a payment in installments, so would need it all up front.
Thanks in advance.
0
Comments
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hi
try this website I found it a couple of days ago and you can ask legal questions online and they come back to you in a day. Its free so nothing to lose in my opinion - they came back to me with a response already and am happy.
http://www.lawanswers.co.uk
Good luck0 -
From the ACAS website
[URL="javascript:toggleArticleContents('articlebody1628')"]What is redundancy pay?[/URL] You have the right to a lump sum 'redundancy payment' if you are dismissed because of redundancy. The amount is related to your age, length of continuous service with the employer, and weekly pay up to a maximum. The employer must also provide you with a written statement showing how the payment has been calculated at or before the time it is paid.
Any dispute about whether a redundancy payment is due, or about its size, can be determined by an employment tribunal. If your employer has cash-flow problems so serious that making the redundancy payment would put the future of the business at serious risk, the Redundancy Payments Service (RPS) can arrange to pay you direct from the National Insurance Fund. If your employer is insolvent, the RPS makes the payment and the debt is recovered from the assets of the business.0
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