Redundancy Terms..

[conny]

Just been informed there may be some redundancies at some of our branches and wondered if anyone is up to speed on the terms these days.

Last time I came across this situation it stood as getting 90 days notice and then your pay was 1 week if you were 18 to 40 for each full year of service.
1 1/2 weeks 41 to 64 for each full year.
Nothing if you were 64+

Also it wasn't based on your gross pay but a figure of about £287 per week.
Does this still stand or have things changed/improved?

Appreciate any help you guys could give though live in hope that I won't be unfortunate enough to need it, though I may be of help to others.

 

[Trazor]

This site will help you work out benefits, if the worst should happen.

http://www.entitledto.co.uk/default.aspx

This one for redundancy payments.

http://www.berr.gov.uk/whatwedo/employment/employment-legislation/employment-guidance/page33683.html

 

[tim west]

The notice period is dependant on the number being made redundant or contractual agreements.

Contractual and statutory notice periods:
The minimum legal notice period to be given by an employer is:

one week's notice if the employee has been employed by the employer continuously for one month or more, but for less than two years
two weeks' notice if the employee has been employed by the employer continuously for two years, and one additional week's notice for each further complete year of continuous employment, up to a maximum of 12 weeks
An employer can include longer periods of notice in the employment contract.

Note that if you plan to make 20 or more employees redundant special conditions apply.

The minimum statutory notice period which must be given by an employee is at least one week's notice if employed continuously for one month or more by that employer. Note that the minimum notice period does not increase with longer service.

Minimum notice does not apply to the following people:

independent contractors or freelance agents - see our guide on employment status
employees whose fixed-term contracts have come to an end, with a few exceptions
Unless a contract states otherwise, notice can be given on any day. The notice period runs from the start of the day after the day on which notice was given. So if a week's notice is given on a Monday, the period of notice will begin on the Tuesday and expire at the end of the following Monday.

Some contracts of employment contain special terms about notice, eg in contracts of employees who have access to information that you wish to protect from a competitor.


payments:

up to the age of 21 - a half-week's pay for each completed year of service
22-40 years of age - one week's pay for each completed year of service
41+ years of age - one and a half weeks' pay for each completed year of service (this info from the DTI website)

 

[^woody^]

The other thing to remember is to make sure that the selection process for redundancies is fair and defined, and not some arbitrary decision

 

[tim west]

The other thing to remember is to make sure that the selection process for redundancies is fair and defined, and not some arbitrary decision

Firms get round this by creating a new job title and re-boarding everyone in order to get rid of the dead wood, the only entitlement is to ask reasons why you didnt get the job and all they have to say is you were beaten by a better person.

 

[conny]

Thanks guys.
Knew I could count on you to come up with something.
Trazor, thanks for the links. Will have to look tomorrow as I'm up early tomorrow and need to get to bed.
Will let you know how things go.
Once again, thanks.

 

[^woody^]

Firms get round this by creating a new job title and re-boarding everyone in order to get rid of the dead wood, the only entitlement is to ask reasons why you didnt get the job and all they have to say is you were beaten by a better person.

Probably, but in todays climate firms may not have time or may not think about doing this, and the immediate reaction is to get rid of certain high cost or low productivity staff - but it should be the position which is made redundant and not the person

 

[ColJack]

redundancy pay is capped at 350 a week..
if you earn 250 a week, you get 250..
earn 600 a week and you get 350..

 

[MrHumbug]

payments:

up to the age of 21 - a half-week's pay for each completed year of service
22-40 years of age - one week's pay for each completed year of service
41+ years of age - one and a half weeks' pay for each completed year of service (this info from the DTI website)

Note that one week's pay is capped at £350 (if you're actually paid less then it's counted as your actual weekly pay).

Also the first £30,000 of termination pay is not subject to income tax. Termination pay includes redundancy pay and firms have got away with including pay in lieu of notice before but HMRC is cracking down on that.

(I'm not a lawyer but I work with employment law specialists)

Edit: Sory ColJack, I should read to the end of the thread before posting

 

[tim west]

The info I posted was cut and pasted from the DTI website