Working out redundancy payment

[mrs_overall]

As a maths dunce, I'm struggling to work this out.
If someone has worked for a business for 33 years and currently earns �25K, how much redundancy money would they be entitled to?

[danchip]

it depends what it states in your contract

[mrs_overall]

It's just a general question.
The company my brother in law works for is cutting back on staff and he was wondering roughly what he might get if he is one of the ones they make redundant.

[Doolallygirl]

This might sound a bit optimistic of me, but I think he will be one of the last to go as the payment will be so big! I used to deal with redundancies and people were getting lots of money (can't remember exactly how it was worked out).

[mrs_overall]

The problem is that the post he is in was created only 2 years ago.
In another branch of the firm, the holder of the identical position has been made redundant already.

[Doolallygirl]

Ah so he got a new contract then? I'm not sure it matters either way if it is the same firm? Someone help me out here! lol

[danchip]

firm i used to work for paid either 1 month/weeks wage for every year you had worked for the company

they offered everyone voluntary redundancies after being took over by another firm 2 years earlier and the old guys who had been there since leaving school were over the moon, rubbing their hands together until they found out it only went back 2 years from when the company was bought out

[mrs_overall]

That's an interesting point danchip. This firm was bought out by a foreign company just over a year ago.

I guess he won't be retiring to the Carribbean after all!

[danchip]

the company was bought out by a french firm, i worked for the previous firm for 5 years and then 2 years for the new lot and they would only give me a reference for the last 2 years

these foreign firms work in funny ways

[LCDMAN]

The UK statutory minimum redundancy payment is currently 1 weeks salary for every year of continuous service. This is capped at �330 per week regardless of if they normally earn more than that. Redundancy payments up to �30,000 are not taxable, but above that they are.

As �25K per year is more than �330 per week (gross) then it's 33 years x �330 = �10890.

Remember that this is the statutory minimum and his contract may well have better terms or he may be offered a better package (depending on how guilty his employers feel!) Either way this should be the least he should expect.

[mrs_overall]

Many thanks for that.

[therubster]

hi,

how old is he, if he is 41 or over then he is entitled to 1.5 weeks pay per year so he will get �495 for every week he has served, this is tax free.

he is also entitled to 1 weeks pay at his gross weekly pay per year up to a maximum of 12 weeks. this would be in lou of notice and would be subject to tax and n.i.

hope this has helped

[mrs_overall]

Thanks

[Yorky Lass]

Is this any use?

http://www.berr.gov.uk/whatwedo/employment/emp loyment-legislation/employment-guidance/page33 157.html

[scoobydooby]

therubster is incorrect. The maximum statutory, as LCDMAN states, is capped at �330 per week. it makes no difference if someone is over 41 years of age. The only time someone of over the age of 41 would benefit, due to their age, would be if their weekly earnings were below this figure. For example, if someone aged 38 was earning �200 per week and their company only paid out the statutory - they would get �200 for every year worked. However, someone over 41 would get 1.5 times their weekly wage, so if that person also earned �200 per week, they would get �300 for every year worked.

[WoWo]

Unless they started working for the company when they were 8, anybody with 33 years service would be over 41.