Redundancy

[Diamond12]

I am 61 years old and have worked part-time, on average between 15 and 24 hours a week for 12 years with the same company. (the hours have become less over the years due to staffing and work levels. The company is now going to cease trading and I have been offered £5,000 redundancy. Would this be a fair figure as I feel it is a little mean after 12 years service. Thanks

[rebel11]

Hi dia

 

Welcome to CAG

The guys will advise as soon as they are available.

[SarEl]

You can find a redundancy calculator at http://www.direct.gov.uk/redundancy.dsb

 

But off the top of my head - and not having a clue what you earn - it sounds in the right ballpark. I'm afraid fair doesn't come into it - only what they have to pay. Don't forget that this is on top of your notice period, although you obviously may have to work that.

[nil_mrec]

Unfortunately redundancy payouts are not great at all. However companies have discretion to offer more than the statutory limits if they want to.

[Diamond12]

Thank you for the prompt replies .... I guess, yes, its down to the company. Seems I am getting around 6 months redundancy for 12 years service. Not much for loyalty!!

 

However, can anyone answer another query. Is a woman still entitled to statutory redundancy after the age of 60? And if so, how many years do you have to be with a company to be entitled to it should I decide to find another job and it only lasts maybe 2 or 3 years?

 

Thanks

[SarEl]

You can claim redundancy payments until you are 65 unless a company has a compulsory retirement age of less for both men and women.

[Diamond12]

Thanks Sarel

 

Presumably you cant claim statutory redundancy in addition to the private payment from the company? Its one or the other!

[SarEl]

The compnay "include statutory redundancy" in any enhanced package.

[honeybee13]

Hello there. I don't know if you've looked at the redundancy calculator, but the statutory amount is one week's salary for each year you've worked, one and a half from memory for over age 45 I think. And there's a maximum amount in £. So depending on your age, statutory redunancy would be 12 or 18 weeks salary, not 26.

 

Does that help at all?

 

My best, HB

[Diamond12]

Thanks for all your replies and advice. Statutory is around £3,750 I believe, so proving my point I suppose that I am not actually being given much more by my company if my £5000 includes this statutory amount. Ah well, such is life ay? Much appreciate everyone's help.

[Pumpkinhead]

Diamond, one other bonus is that your redundancy payment is likely to be tax free. If you are able to get pay in lieu of notice also you might get that tax free too but this depends upon the terms in your contract.

[Diamond12]

Thanks again. My next question is that I am being re-employed afterwards on a temporary basis but am being asked to sign a Compromise Agreement. I have not seen this yet, but am under the impression it basically asks that I will not ask my company for any further monies etc., when the temporary contract ends. I can of course leave at any point I wish but does anyone think that I should have an independent solicitor look through this Compromise Agreement before I sign it with the company's solicitor?

 

Also, regarding statutory redundancy which is part of the total package given to me, is this statutory part of the payment paid by the company or can they claim this back from the Government?

 

Thanks again everyone.

[SarEl]

Yes you have to have a solicitor (or a union rep authorised to sign) and no they cannot claim it back.

[sir_gilmour]

Hi

Welcome to The Consumer Action Group.

 

 

I am just letting you know that as you haven't had any replies to your post yet, it might be better if you post your message again in an appropriate sub-forum. You will get lots of help there.

 

Also take some time to read around the forum and get used to the layout. It is a big forum and takes a lot of getting used to.

 

 

Once you start to find your way, you will soon realise that it is fairly easy to get round and to get the help you need.

 

It can be bit confusing at first.