Redundancy payment, question

[benjammin316]

Hello everyone.

 

I have been made redundant, 5 weeks notice, have been at my job for 5 years.

 

I have been offered £1500 redundancy money for the 5 years, £300 per year.

 

Is this the minimum they can give me? as I get paid more than that, before tax every week. I was under the impression I would get 5 weeks worth of wages before tax?

 

Any help appreciated, thanks

[MIKEY DABODEE]

hello

try this

 

http://www.direct.gov.uk/en/Diol1/DoItOnline/DG_4017972

[benjammin316]

hello

try this

 

 

Thanks very much.

 

says I am owed £1820, not £1500 as stated. Guess it's time for a trip to see the boss.

[Sidewinder]

Although it is a week's wages for every completed year of service (0.5 weeks if under 22, 1.5 weeks if you are aged over 41), a week's wages is capped at £430 for the purposes of Statutory Redundancy, so if you earn less than £430 a week you will receive your normal weekly wage, multiplied by 5 and if you earn more than £430 a week it will be capped.

 

Remember that Statutory Redundancy is paid tax free and you must also receive outstanding holiday pay to the date of termination, although that will be taxable.

[benjammin316]

The reason it was calculated at £1500 was because they said they didn't have to include shift allowance in my payment, is that correct?

[assisted blonde]

yes I believe it is

[elche]

The reason it was calculated at £1500 was because they said they didn't have to include shift allowance in my payment, is that correct?

 

Hi Benjamin, sorry about the redundancy and good luck finding a new job.

 

Your amount of SRP is calculated on the basis of a 'week's pay' (let's call this A [capped @ £430] ) multiplied by a figure that varies with length of service and age, (let's call this B).

 

SW has explained above how to calculate B, but in your case what 'A' is is impossible for us to tell you for certain without more information.

 

A week's pay is calculated by reference to statute, and the method of calculating a week's pay depends upon the type of hours you work and the pay structure that applies to you.

 

Type of hours can mean if they are fixed or vary and pay structure can relate to issues such as how bonuses or enhancements are contractually described and paid - this could include your 'shift bonus'.

 

Thus to have a better idea of how to calculate figure A for you we need to know (amongst other things), if your hours varied each week, and how this 'shift bonus worked'. You might be able to get community legal advice to help you with this, or more info here may help us!

 

Their number is 0845 345 4 345 - http://www.direct.gov.uk/en/Dl1/Directories/UsefulContactsByCategory/Governmentcitizensandrightscontacts/DG_195356

 

Hope this is some help.

 

Che

[elche]

Sorry just to add: that as a result of the above if your 'shift bonus' brings you within what is envisaged by s.221(3) of the ERA 1996 then it could be that the proper way to calculate a week's pay will be an average of the pay received by the you over the 12 weeks prior to the calculation date

[mariefab]

One indicator of whether, or not, your shift allowance should be included in the calculation of 'a week's pay' is if the shift allowance was paid when you took holidays.

[benjammin316]

Hi, thanks for the advice.

 

I work a flat 40hr week. Every week.

 

I get paid £9.10ph the pay doesn't vary from week to week.

 

I have been paid at £7.50ph for my redundancy payment, this is how the figure came to £1500.

 

If i take holiday, i only recieve basic wage to, £7.50. Its a joke really, wasn't expecting to get shafted at the end.