Redundancy

[cazdee]

I have just been made redundant. My contract is for a four day week, but for 6 weeks I have been working 3 days, due to lack of work. Will my redundancy be worked out on a 3 or 4 day week.
Many thanks

[tonyav]

It should be based on whatever your contracted hours are.

[factor-fiction]

It's based on lost future earnings. We need buildersmate but I'd have thought redundancy calculations would be based on your usual contracted hours.

[tonyav]

When they cut your hours did you have a new contract of employment of them ?.

[cazdee]

Thanks for responses. No new contract, it was to be reviewed but work has declined so much redundancies have been made.

[tonyav]

In that case it should be based on your original contracted hour.

[dotty.]

so were you paid your contrcated hours for the last 6 weeks? when you go into the 90 day consultation ?

[boxtops]

That's what I was going to ask dotty, we are just coming up to our 90-day period, letters should arrive on 31 Dec.

[LyndaB]

It used to be based in your earnings for the last 12 weeks but things might have changed

[dotty.]

boxy we had a 90 day consultation BUT it was considered by the management that there was nothing further to negotiate and we were actually given out letters after 58 days (that was in 2009) it was a shock but acas said the company were perfectly within the guidelines to make that move,

[tonyav]

Did you get paid in lieu of notice though dot ?.

[factor-fiction]

The consultation period occurs before the notice period starts, so there wouldn't have been any impact on redundancy pay, tony (other than that the length of service might have been 32 days less than dotty had planned for.

[factor-fiction]

Sorry tony- I meant to add that there would have been no need for pay in lieu of notice either, since the consultation period occurs before the notice period starts

[tonyav]

Ah righto, factor.

[tonyav]

I suppose than that you would only get pay in lieu if the company wanted you to finish before the contracted date.

[factor-fiction]

Yes. Pay in lieu of notice can be an attractive option for employees since it can be free of income tax in certain cases and of course they save in travelling costs. Unfortunately when I took redundancy I was fully occupied right until the end of my notice period.

[dotty.]

yes we were all paid the 90 days tone, but for those who had not been with the company for 2 years it was all they got. it meant i got a break before starting work with smiths though, i think i had something like 4 weeks off after my redundency payment, it was good as i could relax knowing i had a job lined up

[tonyav]

When I was made redundant four years ago I got paid in lieu of notice ( 22 years service ) took me exactly a year to find another job and thats 10 miles away instead of the 2 miles I was used to.

[buildersmate]

Your redundancy payment will be worked out on your normal contracted weekly earnings, though bear in mind that statutory redundancy is capped at £430 per week. The number of days per week you are working doesn't come into it.

The usual suspect above has jumped in and asserted that a 90-day consultation period must start. That only applies in her (somewhat limited) experience - 90-day consultation periods only apply if 100 or more employees are being declared redundant in one location.

For less than 20 employees declared redundant, no consultation period applies, though notice periods

[boxtops]

Thanks BM, that explains our position, potentially more than 200 of us are at risk.

[ojread2]

https://www.gov.uk/calculate-your-redundancy-pay

You can work out what you'll get