Funkii Munkii

Just a quickie, if you are to be made redundant and your contract states "Notice of Termination to be given by employer 3 months" likewise the same for the Employee does this entitle you to 3 months money on top of any redundancy package ? said person has worked there for 32 months.

Thanks

Dr.No

It depends, if asked to work notice period then no - it'll just be 3 months work with 3 months pay. If not asked to work notice ("gardening leave") then it'll typically be 3 months pay in lieu of notice. It can be argued to have this included within the redundancy package and hence not taxed, but often it is simple classed as pay (and taxed) with the redundancy settlement being paid separately (and not taxed).

ReallyReallyGoodMeat

I had this happen to me.
The company wanted to get rid of us within the three months contractual period, so got it as part of the redundancy package.
If they are happy for you to work for the three months, then you get the salary as normal.
But they can't get rid of you prior to the 3 month contractual period unless you agree to break the contract (i.e. you accepting being paid in lieu).

Funkii Munkii

Thanks Dr No

So in an ideal world if they cobbled the 3 months salary + statutory redundancy together as a package and wrote a cheque there and then and said clear your desk today one would be able to start working for another company immediately, or would they still have to sit about gardening for 3 months.

Thanks again

richie001

iTrader: (3)

When I got made redundant by Corus a couple of years back,they put me on gardening leave and was told I couldn't get a new job till my gardening leave was up because I still worked for Corus.

yellowvanman

If paid as redundancy, your contract is complete with them, so you can start work elsewhere immediately.
If paid as 'gardening leave' you are still under contract and can't work elsewhere, until the end of the notice period. Or unless they agree to terminate the contract earlier.

Dr.No

^^^ what he said!

Tidgy

Notice period is just that, the date you finish is at the end of your notice period.

so if you get made redundant 1st jan and have 3 months notice, your offical finish date is 1st of April.

The options are,

1. You work that 3 month period
2. you are on garden leave for 3 months and basicly sit at home (spend time finding another job ), legaly they are perfectly entitled to do this. If you start new job sooner they have the right to withhold the pay.
3. You finish ther and then and told you can find and start another job straight away (make sure you have it in writing form someone at the company who is authorised to make that decision for the company).
As far as what pay you get,

1. You get normal pay for the 3 months, either paid up front, or at each monthly basis, that is fully taxable as normal.
2. Any holiday time not taken but are due will be given to you at a daily salary rate (assuming you get paid holiday), this is taxable.
3. You get redundancy as per your contract or statutory (need to work out what it is), that comes as a lump sump, again either at time of notice, or end of notice period and is tax free.

mrs went through this just before christmas so pretty up on what happens lol

douglasb

It is only the first £30K that is tax free. Anything above that is taxed at the appropriate rate.

Tidgy

shame we didnt have to worry about that lol

theboy

Not been on here for ages, I gave notive last Tuesday of my intention to leave my employer, on the Thursday he said he wanted me out straight away but would pay me my 2 weeks notice. I think you can only be put on gardening leave if its in your employment contract.

pimmo2000

iTrader: (6)

It's up to the company, if they feel you are a risk they normally do it. Make sure they have chance to remove your access etc and make sure your company knowledge is at least not up to date.

grovesy

Funkii Munkii do you work for the coop by any chance ?

Funkii Munkii

No

jpor

iTrader: (1)

Sounds like what happened to me when I worked for one of the banking companies