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  • Given notice – no mention of redundancy pay…
  • Premier Icon g5604
    Free Member

    Found out today I have been given two months notice. My employer has put together a ‘package’ that includes a guarantee of two days a week work at for three months, but nothing about redundancy. I have been with them for 8 years…

    Premier Icon mattyfez
    Free Member

    Sounds fishy, 2 months notice but 3 months work less than part time?

    What’s the letter say?

    Statutory minimum redundancy is so many weeks/months pay per year served.

    Are they trying to wriggle out of paying redundancy payment with some weird semi part time payment?

    Sounds iffy.

    Premier Icon theotherjonv
    Full Member

    sounds iffy, however look at it dispassionately. You don’t get PILON tax free any longer and it’s only your redundancy that is tax free, and that’s at a rate that depends on your age and no of years full service, and then capped if they wish.  If 3 mo guaranteed at 2d/week gives you more money and gives you 3d/week to job hunt, I’d certainly consider it.

    Premier Icon tomhoward
    Full Member

    Speak to an employment lawyer or a union rep if you are a member. That doesn’t sound right at all.

    Premier Icon g5604
    Free Member

    Does feel that way, they have put a total at the end of the letter, but it’s for work I have to do, so not really a redundancy. I will be going freelance and don’t want to burn any bridges, but I guess I need to remind then of my legal rights.

    Premier Icon tall_martin
    Full Member

    I’ve been made redundant twice.

    Both times its been one weeks salary per year service, if you have been there for over 2 years.

    The chap who had been there 30 years was pretty pleased!

    Premier Icon g5604
    Free Member

    @theotherjon

    But surely that is not legal? It would be slightly more than redundancy pay, but obviously I would be working for it!

    Premier Icon theotherjonv
    Full Member

    Company can pay what it wants; when i was made redundant I got the minimum they were obliged to and not a penny more.

    https://www.gov.uk/staff-redundant/redundancy-pay

    Employees get:

    • 1.5 weeks’ pay for each full year of employment after their 41st birthday
    • a week’s pay for each full year of employment after their 22nd birthday
    • half a week’s pay for each full year of employment up to their 22nd birthday

    Length of service is capped at 20 years and weekly pay is capped at £525. The maximum amount of statutory redundancy pay is £15,750.

    You can give your staff extra redundancy pay if you want to, or have a qualifying period of less than 2 years.

    Premier Icon theotherjonv
    Full Member

    not if they offer it to you as a settlement agreement (used to be a compromise agreement) – you’re free to agree to whatever you want (in reason), even if it is a shit deal.

    You can speak to ACAS for advice – they can’t give you advice on whether it’s a good deal or not (an employment lawyer can but £££) but they can advise you on the process and what your legal entitlement is. They were very helpful to me.

    Premier Icon thisisnotaspoon
    Full Member

    But surely that is not legal? It would be slightly more than redundancy pay, but obviously I would be working for it!

    I’d ask what the redundancy package is, depends what you’re paid and whether they offer statutory or something else. 40 days (or statutory) tax free plus you work your notice anyway could be more than 26 days taxed.

    Either way it doesn’t sound right. Check with CAB/ACAS but I’d go into any discussions in the knowledge that you’re owed at least statutory (and have to work some notice anyway) and you know they have work they want you to do, potentially your first freelance job.

    My experience is you get F*** all back being nice and trying to do the right thing for a big employer.

    Premier Icon wrightyson
    Free Member

    It’s worth following the above you gov link and filling in your details for an idea of your stat pay.

    Premier Icon thisisnotaspoon
    Full Member

    Just asked the OH who does this properly. Assuming it’s just you being made redundant and a small company they don’t have to consult or anything but they do still have to give you your notice.

    Premier Icon FuzzyWuzzy
    Full Member

    Does sound odd, I’d just be asking for the straight redundancy terms they’re providing.

    Premier Icon wrightyson
    Free Member

    Assuming it’s just you being made redundant and a small company they don’t have to consult or anything but they do still have to give you your notice.

    What does that mean? Do they not have to pay out anything regarding statutory redundancy pay? I work for a small company and have done for 17 years, we are going to wrap up at some point in the next few years and I was hoping my redundancy would set me up doing something else. It currently stands at 10k with the above calculator. Does that have to be paid?

    Premier Icon tomhoward
    Full Member

    Tbh, and I’m not an expert, it sounds like they are trying to get you to sign a settlement agreement, where if you agree to leave on the terms they give you, you wouldn’t be entitled to redundancy. They are asking you to resign and offing what they have as an incentive. Sounds a pretty shitty incentive if you ask me. 8 weeks tax free salary should be the minimum, plus wages for whatever work you do before leaving.

    Premier Icon thisisnotaspoon
    Full Member

    What does that mean? Do they not have to pay out anything regarding statutory redundancy pay? I work for a small company and have done for 17 years, we are going to wrap up at some point in the next few years and I was hoping my redundancy would set me up doing something else. It currently stands at 10k with the above calculator. Does that have to be paid?

    No I just meant in terms of notice, there are thresholds (20 and 100 people I think) where the company has to go through various forms of consultation process which in reality just means you get a letter saying “in a months time x roles out of a team of y will be made redundant”, a bit like getting notice that you’re going to get given your notice. The redundancy at the end of it isn’t affected. If it’s just an individual position being made redundant then that doesn’t apply (but you get the same statutory redundancy pay or whatever they offer).

    Premier Icon Sandwich
    Full Member

    No I just meant in terms of notice, there are thresholds

    These are considered best practice and can form the basis of a claim for compensation if ‘best practice’ is not followed whatever size the company is.

    Premier Icon P-Jay
    Full Member

    Tbh, and I’m not an expert, it sounds like they are trying to get you to sign a settlement agreement, where if you agree to leave on the terms they give you, you wouldn’t be entitled to redundancy. They are asking you to resign and offing what they have as an incentive. Sounds a pretty shitty incentive if you ask me. 8 weeks tax free salary should be the minimum, plus wages for whatever work you do before leaving.

    That was my thoughts, even in the face of redundancy a lot of people will sign anything the boss puts in front of them.

    Premier Icon PJM1974
    Free Member

    That’s dodgy, it sounds as though they’re trying to minimise costs by forcing you to agree to a settlement as a way of sidestepping the redundancy. It’s worth picking up the phone and discussing with ACAS.

    Premier Icon g5604
    Free Member

    thanks everyone, going to speak with ACAS. It’s possible my boss was simply unaware that I am owed redundancy, pretty clueless in general, hence the company is in trouble.

    Premier Icon breatheeasy
    Free Member

    Its fairly obvious but bear in mind if you do drop onto this 2 day week malarky then if you do find a new job that needs you 5 days a week then you’ll be, in effect, putting your notice in with the old firm and hence no redundancy package, however small, unless you can limp on for a few months on 2/5ths pay.

    Premier Icon theotherjonv
    Full Member

    8 weeks tax free salary should be the minimum

    may be more or less depending on your age; any years worked after age 41 are worth 1.5, any worked before 22 are 0.5

    And they can be capped at £525, although some companies choose to pay at your actual rate

    As breatheasy said – if they are offering a settlement agreement – I would ask that if you leave before the end for a full time role, then you get your redundancy or at least a proportion of it. Don’t ask, don’t get.

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