[Closed] Is my colleague being shortchanged (redundancy)...

Its theoretically a weeks pay but it is capped at a low amount so highly likely to be significantly lower if they are on a reasonable wage. Came as shock to a friend who was on a 6 figure salary. The company can choose to pay over the statutory minimum but they don't have to

I would have thought but am not sure it should have been based on the average of his last years earnings. Anything on the TUC site to help? - they have a good section on redundancy

The company can choose to pay over the statutory minimum but they don't have to

Well that depends on what's in his contract.

My previous employer didn't [i]choose[/i] to pay well over the statutory minimum when they made me redundant.

The company can choose to pay over the statutory minimum but they don't have to

Exactly this.

[url= https://www.gov.uk/calculate-your-redundancy-pay ]https://www.gov.uk/calculate-your-redundancy-pay[/url]

"You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.

You’ll get:
- half a week’s pay for each full year you were under 22
- one week’s pay for each full year you were 22 or older, but under 41
- one and half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years.

If you were made redundant on or after 6 April 2017, your weekly pay is capped at £489 and the maximum statutory redundancy pay you can get is £14,670."

Well that depends on what's in his contract.

My previous employer didn't choose to pay well over the statutory minimum when they made me redundant.

They chose to put it in your contract.

Pretty sure its based on your actual hours/days.

However they may have a case if they reduced hours of work temporarily to avoid redundnancy

Need to see contract and T & C and know context to offer anything more meaningful.

As per birky's link. They have no obligation to give you anything more than statutory, which is not very much at all when the bills keep coming in and the work doesn't

The calculation is usually based on your contractual hours at the time. My wife was part time when made redundant and had spent most of her career as full time, but calculation based on pay at that point.

However, as we found out, calculations do have to have some basis in what is customary in your organisation, so if it has been customary to use an average, then that is what he should ask for.

Thanks all - sounds like a bit of a minefield! We'll keep our mouths shut I think.

Redundancy can be a git as in the OPs case. In my case I was technically hourly paid and I'd had a good bonus in the last few months (working on an IT project - SAP trainer) and my average weekly pay worked out to be stratospherically higher than my actual wage, at least double. Then they had to pay me off 8 out of 11 weeks notice that was due for 11 years service and I left with about 8 months salary in my pocket. Mrs PP got well over a years salary too, a few months ago.
But yeah, if they're broke they'll go for the minimum and that's based on what you currently earn as far as I understand it.

I'd think the question would be whether his last 5 months were working at 3 days a week through choice, or was that enforced.

If enforced, I'd imagine he'd have a fair case for getting it recalculated based on the 5 days. If by choice, then I don't think there will really be any come back, 3 days is probably the correct basis for that.

I dunno, I'm just having a guess here tbh.

As well bringing up the question, no real benefit in keeping quiet about it, he's leaving the place anyway. mibbe speak to CAB or something firstly.