Redundancy money ??
 

Firm where I work are closing down so willl be being made redundant, just wonder if anyone knows what the legal sitaution is regards redundancy money ie who makes up the rules wether it is a weeks wages for every year worked or a months wages for every year worked - anyone know ??

having worked there for 7 years and 8 months just wonder if the 8 months come into the final redundancy pay amount, or is it only full years worked ??

wages are paid out per week and I am aged under 40 - say this as it has been suggested that being paid weekly and being under 40 years off age has a reflection on the above month/ week for every year worked redundany money question ??

having never been in this situation before this is all new too me, no one seems to know the exact answers to the above at work just now just, all rumours / all shocked to take it all in !! just wonder if it is at the companies descretion reagrds the above or is there a legal obligation regards years worked / redundancy money ??

cheers,
john

Look on your contract of employment. :)

Having just been thru the same I suggest you go to the dti site - its all in there. That said, it only tells you what the legal minimum is, your employers policy may be enhanced.

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


As far as Im aware its only full years that count, not part years.

another thing..... I seem to recall coming across a reference to payments being based on a maximum of £290 per week on the dti site - absolute rubbish. I received my actual weekly salary x number of years in service plus a whole load of other stuff local government pays u :D

minimum requirement is 1 week for each full year of service, capped at £290. You cannot get less than this, but you might get more

so 'capped' in this case means minimum:idea: makes sense now lol

You will receive a weeks pay for every complete year you have worked there, ie 7. They can if they wish cap this at £290 per week. Therefore the min would 7 x £290 (assuming you earn more than £290 pw.

In addition they pay you your notice period in full.

Could be in a similar position myself soon


16 years service I have so it would be 16 weeks at £290 despite me earning a bir more :D:D:D


also would I be paid for another 16 weeks notice ?

making 32 weeks total ?


Is it paid tax free and when do you get it from the emloyer or Govt ?

redundancy pay under £30k is tax free.

You dont necc get PILON (payment in lieu of notice) they can make you work it.

If you do get paid it, rather than work it in most cases it is NOT tax free as it is classed as earnings (you would otherwise have earnt it).

That said my employer paid mine tax and NI free and I worked in local government - but i think this was a case of them f**king it up as other people were taxed .... not that Im complaining :D

When you get paid it depends on how you get paid. If ur paid monthly they have to pay you by the next pay date after your last day of work, if u get paid weekly, then the week after you leave....

Cheers guys, really appreciatte the advice even if some off it wasnt really what I wanted to here !!!

capped means maximum in terms of statutory redundancy , if you have been there 7 years and earn over £290 a week then then they must pay 7 weeks at £290 , if you earn less that "290 then they must pay 7 weeks at your normal wages , anything above these amounts is voluntary