Boro

iTrader: (1)

Probably got another month before i need to find another job.

What happens with redundancy pay and holiday pay, etc. What exactly am i entitled to, if anything?

CTR

After 2 years service you are entitled to at a minimum £250 for every year worked. They have to pay you if youre not working whilst on notice, and I think they have to pay you for any untaken holiday, but not sure about that. Most places seem to give a weeks pay for every year worked after 2 years, untaken holiday pay, and then a months pay on top. Redundancy pay is tax free too. The holiday pay thing can also work the other way, if you have taken more holiday than you are entitled to by the time you leave, you will probably get money taken off.

And sorry to hear youve been made redundant.

MattW

30k limit though, anything above is charged as income.

Boro

iTrader: (1)

Ive been here 3 years, i think they are expecting me to take this months salary and call it a day, ive hardly take ANY holidays over the last twelve months.

CTR

Have they officially given you notice, they have to pay you your notice time(which I guess is a month), and at a miniumum £750 then(+ holiday?)

messiah

you should get compensation also.

Was made redunadant a few years when liquidators wound the company up - it took a while but got a cheque for £1500 out of the blue.

Boro

iTrader: (1)

I havent had any official notice, just the gaffa said theyre shutting this site down and i wont be needed at the other site (its alot smaller). That was about 2 weeks ago, im guessing this place will be here til the end of this month.

CTR

Pretty sure they would have to give you notice in writing. Theres more info on the DTI site I think, but I cant remember the link, sorry.

Diablo

CTR - its now £270.

Your statutory entitlements may differ to contractual entitlements.

CTR

Theyve put it up, still p!ss poor though

Some info
http://www.dti.gov.uk/er/redundancy/faq.htm

Sith

Dunno, but I'll let you know. I'm redundant tomorrow.

scoob_babe

They do have to give you the boot in writing though - at least you've been warned. First I knew about my imminent exit was 'can you come up to the Millenium Room for a chat' at 3pm on a Friday afternoon and that was it. Got given an envelope with all the documents / excuses in it and had them read out to me.
Not required to work notice, straight out of the door. (At least I got an early finish on a Friday!!!). Had been there 2 weeks short of a year although they did give me some money to compensate. Had to get a solicitor to advise me on compromise agreement which they pay for and that was it.

Got a permanent, non consulting role now

ScoobySnack

I think redundancy is now taxable (so no £30K limit) if you were employed after the year 2000... If it was before 2000 then the £30K amount is untaxable ..

Can somebody confirm ?


J

RRH

local benefits office will give you all the advice you need.

it may be considered that you have worked your notice period, and have been paid for it, although it should have been put in writing and you should have also been informed exactly what you were being paid, end date etc, and have been given a reasonable amount of time off work to look for another job. if you are paid in lieu of notice it is liable to tax and NI.

You are also due your holiday entitlement for this year- if you've not taken any this should usually be about 4 weeks wages and is not subject to the £270 cap. you will pay tax & ni on this money.

any redundancy reward is capped at £270 per week- I'm guessing you are probably due a weeks pay for every year you have worked there whilst ver the age of 21. This is not liable to tax and NI.

Pay per years worked is dependent on age, there's a calculator on the DTi site (look for the 'ready reckoner'.)

hope you get yourself sorted out.

simon

Buckrogers

Statutory entitlements are not taxable. 250 / 270 per year employed.
They have to pay you your notice period - taxable
They have to pay you your untaken holiday entitlement - taxable

So, you should get 3 x 270, notice period (1 month?), final months pay and any untaken holidays.

This is the law. Any less, consult a lawyer (which I am not, but I have been here before, got the tshirt)

HTH, sorry to hear about it, being made redundant is never pleasent. I have been done twice now...

Buck

RRH

forgot to add that the £270 max assumes you were on £270 or more a week gross. if not your average gross for twelve weeks will be used.

CTR

Are you saying the max you can get for each year worked is £270, cause thats the minimum they have to give. The company can give any amount they like for each year worked(as long as its over £270). My old man was given 1 months pay for each year worked when he was made redundant.

RRH

redundancy awards are capped at £270. It doesn't matter if you were on £2k a week, £270 is the amount you would get for the redundancy award. this does not apply to pay in lieu of notice, which should be paid at normal rate, as is any holiday pay.

It sounds like your old man had generous employers CTR as a month per year worked would have been discretionary and not what the employer was legally obliged to do.

RRH

http://www.dti.gov.uk/er/redundancy/ready.htm

Buckrogers

£270 is the MAX Statutory Entitlement for every year. Employeers can increase this amount to what ever they like but they cannot decrease. (Assuming you are being paid more than £270 PW).

The last tight arsed company I gave 10 years of my life to gave me....£250 per year (which was the max limit at the time).....w@nkers...still I'm not bitter about it....much!

CTR

Ah, sorry I misunderstood what you said. Apologies

BuckRogers, I would be p!ssed.

DemonDave

iTrader: (13)

boro,

just been made redundant myself ..... sorry to hear it for you.

see here http://www.redundancyhelp.co.uk/LegCon.htm

and read some details ... see if the company has not fulfilled its legal obligations, if you think not then see a solicitor. Do not discuss too much on here until you have ... you may not help yourself. Your company should provide you with clear details about the process especially if they are a reasonable sized firm.

see http://www.redundancyhelp.co.uk/LegHome.htm

Quote
"Good employment practice recognises that :-

• As much warning as possible is given.
• Fair and Objective criteria will be used for selection.
• As far as possible alterative employment will be offered.
• Communications between employees representatives / trade unions remain open"

remember to claim NI based Job seeker allowance on the first day you are made redundant ... just a phone call is required to enable you to make a claim from that date.

Good luck

Dave.

imlach

AFAIK, this is incorrect.
Know loads of redundant people in the last year or so (our hi-tech company, Genital Technologies, got rid of loads).

People who joined after 2000 got a good payout, and it was only taxable on the amount above £30k, so have to assume you are incorrect.

I joined the crowd of redundant people a few months back too, but have now got another job lined up, but I am still on "gardening leave" so not had my mega-payout as yet (should get it end of August).

Way I look at it - it's just a job - if the company is offering tens of thousands to be made redundant, it'd be wrong to refuse

Boro

iTrader: (1)

Thanks for the info guys and the links. Had a chat with the gaffa today, my last day will be Monday and he said i'll be paid up until the end of the month. Nothing mentioned about redunancy pay/holiday pay, etc. He did say something about my salary being tax free though.

Am i right in thinking i should get my salary, PLUS redunancy, PLUS holiday pay?

My basic salary is quite low as my job is mainly commission, ive worked it out to be 3 weeks @ £225 = £675 + salary + holiday pay.

Is that right and which payment is tax free?

Cheers

Boro

DemonDave

iTrader: (13)

There is only a minimum payment they have to make. What is you notice period. You should be paid for that as well.

How big is the company? They should be providing written details to you before Monday ! What selection critieria have they applied ... how many others are being made redundant?

your salary and holidays are NOT tax free. Only the the amount they pay you as redundancy is tax free. The tax office will look for the line on the pay slip or in the letter you get that states the amount that is tax free.

Dave.

Boro

iTrader: (1)

Its a small company, i dont expect to get anything in writing. I was told of the impending redundancy about 2 weeks ago but wasnt given anything in writing or told when my last day would be. Today i was told Monday would be my last day and i would be paid until the end of the month. Thats it.

DemonDave

iTrader: (13)

See a solicitor ... get one that will offer a free initial conversation. At minimum I suggest you are entitled to

For each complete year of continuous service between the ages of 18 and 21, you will receive half a week's pay.

For each complete year of continuous service between the ages of 22 and 40, you will receive one week's pay.

For each complete year of continuous service between the ages of 41 and 65 you will receive 1½ weeks' pay. However, if you are over 64, the total amount of the payment you receive will be reduced.

To help you work out your statutory payment, you can use the Ready Reckoner for calculating the number of weeks' pay due. Don't forget, the week's pay is subject to a maximum of £270.00.

A week's pay is that which the you are entitled to under your terms of your contract at the 'calculation date'. The 'calculation date' is the date on which your employer gives you the minimum notice to which you are legally entitled. If the pay varies (eg: through piece-work) the amount of the week's pay is averaged over the 12 weeks prior to the 'calculation date'. There is a maximum statutory limit (£250 from February 1st 2002, subject to review) on the amount of a week's pay that may be reckoned. This figure is reviewed annually. Employers may pay in excess of the statutory minimum.

plus any salary owed til your leaving date, holiday entitlement plus a payment for the lack of notice (whatever your notice period is from when you were first told that you are redundant not possibly redundant ... so 1 months notice).

like I say get some professional advice. - good luck

http://www.cityredundancies.co.uk/yourrights.html

ie http://www.redundancyhelp.co.uk/legaladvice.htm (not a recommendation but an example)

RRH

Boro, you are correct in thinking that you are due wages, plus accrued holiday pay that you haven't used, plus a redundancy compensation award.

Only your redundancy compensation reward is free of tax and NI.

Your money will be worked out on an average basis and will include your commission, not just your basic.

Boro

iTrader: (1)

OK, got my final pay today

Salary paid from 1/08/04 - until today (my last day), so thats only 9 days pay, PLUS £675 redundancy and no holiday pay.

Although the gaffa mentioned this place would be closing down about 2 weeks ago, i didnt receive written notification and no date was given as to what my last day would be. I assumed from conversations we had that it would be the end of August and that i would be paid up until then.

Are the figures right? My gaffa is coming over in the next hour or so and i need to know that facts before i mention it.