Redundancy Questions
#1
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Well, it happened
Question is, what should I be looking for in terms of redundancy package? Im 23, been there 6 years....
Im thinking
> 1 weeks pay for every year I have been there
> Notice pay, 4 weeks
> Any outstanding salary and holiday
Read that I could get less for the yearly pay due to my age? (half week pay for every year upto 21?)
Any first hand experience?
Cheers in advance
POC the unemployed
Question is, what should I be looking for in terms of redundancy package? Im 23, been there 6 years....
Im thinking
> 1 weeks pay for every year I have been there
> Notice pay, 4 weeks
> Any outstanding salary and holiday
Read that I could get less for the yearly pay due to my age? (half week pay for every year upto 21?)
Any first hand experience?
Cheers in advance
POC the unemployed
#6
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I don't know the minimums but after giving a place 6 years of your life, I would expect them to do the right thing. But if the redundancy money is to the guidelines, then you cannot argue! Just hope they give you a little extra for your services.
Anyway on a brighter note, you're only 23 and the world's your oyster. It's not nice being made redundant but I say it has come for the better! Get out there try pastures new because you don't want to be stuck in any job for that long ...I know I wouldn't
Good luck mate!
Anyway on a brighter note, you're only 23 and the world's your oyster. It's not nice being made redundant but I say it has come for the better! Get out there try pastures new because you don't want to be stuck in any job for that long ...I know I wouldn't
Good luck mate!
#7
Hello
Have a wander through:
http://www.dti.gov.uk/er/redundancy.htm
to see your minimum entitlement and then try and get your company to give you a lot more.
Steve.
Have a wander through:
http://www.dti.gov.uk/er/redundancy.htm
to see your minimum entitlement and then try and get your company to give you a lot more.
Steve.
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#8
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legal requirement for persons 22 years old or over but under 41 years old is 1 weeks pay for every complete year with the company. If you were under 22 you would only be entitled to 1/2 week for every year.
#10
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Terrible news, been in that situaion last year.
Do research on exactly what you are entitled to (all on comonay time). Make sure that they stick to it and they do everything exactly to the letter of the law.
As previously said was in that situation last year - except the company I used to work for made a ***** up of it - ie one letter saying got made redundent and another the next day saying I was fired due to gross misconduct. End result I threatened them with tribunal - which would of resulted in me getting my job back etc (which I did not want !), and I threatened to make it very public, which would of resulted in them losing several vital contracts, - end result I walked away with three years salary + guaranteed referance!
Richard
Do research on exactly what you are entitled to (all on comonay time). Make sure that they stick to it and they do everything exactly to the letter of the law.
As previously said was in that situation last year - except the company I used to work for made a ***** up of it - ie one letter saying got made redundent and another the next day saying I was fired due to gross misconduct. End result I threatened them with tribunal - which would of resulted in me getting my job back etc (which I did not want !), and I threatened to make it very public, which would of resulted in them losing several vital contracts, - end result I walked away with three years salary + guaranteed referance!
Richard
#11
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Thanks guys, I have a pretty good idea of what to expect, hoping that after 6 years of loyal service they wont try to screw me
I am heading back there next Thursday morning, apparenly they will look for other positions in the company.... where do I stand with telling them to stick it? Will it effect the redundancy package?
I assume it would be a choice, take replacement position or take redundancy???
I am heading back there next Thursday morning, apparenly they will look for other positions in the company.... where do I stand with telling them to stick it? Will it effect the redundancy package?
I assume it would be a choice, take replacement position or take redundancy???
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That sucks mate.
Sorry, Propercharlie but thats wrong. Only entitled to redundancy if over 20 years of age
Minimum redundancy payment is currently £260 per week.
As a minimum, you would only be entitled to 3 weeks redundancy (which is not taxed) due to your age. Only years after 20 years old (inclusive) are counted.
You would also be entitled to contractual notice and any wages/holiday pay due - all of which are taxable.
D
[Edited by Diablo - 1/15/2004 10:33:19 AM]
Sorry, Propercharlie but thats wrong. Only entitled to redundancy if over 20 years of age
Minimum redundancy payment is currently £260 per week.
As a minimum, you would only be entitled to 3 weeks redundancy (which is not taxed) due to your age. Only years after 20 years old (inclusive) are counted.
You would also be entitled to contractual notice and any wages/holiday pay due - all of which are taxable.
D
[Edited by Diablo - 1/15/2004 10:33:19 AM]
#14
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Paul,
The minimum has now been increased to £260 per week, it is likely that you will be offered either a new position or redundancy.
Personally I took the redundancy as was no longer interested in working for the company.
Good luck and hope you find a new job soon
Charlie
The minimum has now been increased to £260 per week, it is likely that you will be offered either a new position or redundancy.
Personally I took the redundancy as was no longer interested in working for the company.
Good luck and hope you find a new job soon
Charlie
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<pedant mode>
Diablo - years before the age of 18 do not count.
</pedant mode>
if they offer you another job on the same or better t&cs, i don't think you would automatically be entitled to redundancy if you did not take it. there would have to be a bit of negotiation, i would think
Diablo - years before the age of 18 do not count.
</pedant mode>
if they offer you another job on the same or better t&cs, i don't think you would automatically be entitled to redundancy if you did not take it. there would have to be a bit of negotiation, i would think
#17
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Another thing as well if it is in your contract that you will be paid "in lieu of notice" then this is taxable if it is not in your contract then it is non taxable.
Any salary or holiday pay will be taxable.
Any salary or holiday pay will be taxable.
#19
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just to clarify - from my employment reference manual and also from the dti website:
What are the payments?
The amount of your lump-sum redundancy payment depends on:
* how long you have been continuously employed by your employer;
* how your years of continuous service relate to a particular age band; and
* your weekly pay, up to a legal limit.
For each complete year of continuous service between the ages of 18 and 21, you will receive half a week's pay.
For each complete year of continuous service between the ages of 22 and 40, you will receive one week's pay.
For each complete year of continuous service between the ages of 41 and 65 you will receive 1½ weeks' pay. However, if you are over 64, the total amount of the payment you receive will be reduced.
What are the payments?
The amount of your lump-sum redundancy payment depends on:
* how long you have been continuously employed by your employer;
* how your years of continuous service relate to a particular age band; and
* your weekly pay, up to a legal limit.
For each complete year of continuous service between the ages of 18 and 21, you will receive half a week's pay.
For each complete year of continuous service between the ages of 22 and 40, you will receive one week's pay.
For each complete year of continuous service between the ages of 41 and 65 you will receive 1½ weeks' pay. However, if you are over 64, the total amount of the payment you receive will be reduced.
#20
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PC, I'm not going to get into an argument with you over this
I am sitting with the Dti booklet on redundancy.
You get nothing if under 20 by statute. Your companies T & C may well be different.
D
I am sitting with the Dti booklet on redundancy.
You get nothing if under 20 by statute. Your companies T & C may well be different.
D
#21
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Diablo - check the DTi's website. the text in my post above is a cut and paste from it. Maybe your booklet is not the latest version?
(well it would have been above )
[Edited by ProperCharlie - 1/15/2004 10:52:02 AM]
(well it would have been above )
[Edited by ProperCharlie - 1/15/2004 10:52:02 AM]
#22
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Sorry Diablo I beg to differ as I have always paid non taxable "in lieu of notice" payments on this basis. It is also Non NIC'able for the same reasons.
#23
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Charlie - on what basis have you paid that?
PC - my booklet is bang up to date, and as part of my job I wind up companies and make people redundant.
Have a look at the tables on the ready reconer
Whatever, Poc is only due three weeks.
D
PC - my booklet is bang up to date, and as part of my job I wind up companies and make people redundant.
Have a look at the tables on the ready reconer
Whatever, Poc is only due three weeks.
D
#24
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POC
Sorry to hear this.
Bear in mind they make your position redundant rather than the person so they may try to employ you elsewhere within the company.
Sorry to hear this.
Bear in mind they make your position redundant rather than the person so they may try to employ you elsewhere within the company.
#25
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OK, I see the confusion PC - there is apparent contradiction on the dti site, because although is says
"For each complete year of continuous service between the ages of 18 and 21, you will receive half a week's pay"
It doesn't say that that only applies if you are 20 or over.
So we're both right
"For each complete year of continuous service between the ages of 18 and 21, you will receive half a week's pay"
It doesn't say that that only applies if you are 20 or over.
So we're both right
#26
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well this is where we agree:
1/2 a weeks pay for each year between the ages of 18 and 22 (ie 4 years at 1/2 a week per year) and one year between the ages of 22 and 23 at 1 week per year = 3 years.
1/2 a weeks pay for each year between the ages of 18 and 22 (ie 4 years at 1/2 a week per year) and one year between the ages of 22 and 23 at 1 week per year = 3 years.
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Charlie - ok, if its paid contractually, or if the employer has a habit of paying them, or if its statutory, then its taxable.
Otherwise, any payment is, effectively, an ex gratia redundancy payment so not taxable.
If you have a habit of paying in lieu of notice, then you should be deducting tax and NI, otherwise call it redundancy and be safe
http://www.inlandrevenue.gov.uk/pdfs/ir143.pdf
D
[Edited by Diablo - 1/15/2004 11:10:53 AM]
Otherwise, any payment is, effectively, an ex gratia redundancy payment so not taxable.
If you have a habit of paying in lieu of notice, then you should be deducting tax and NI, otherwise call it redundancy and be safe
http://www.inlandrevenue.gov.uk/pdfs/ir143.pdf
D
[Edited by Diablo - 1/15/2004 11:10:53 AM]
#30
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Diablo, I am not rowing with you honest
Taken from the Tolleys Payroll Management Handbook:
Taken from the Tolleys Payroll Management Handbook:
Pay in lieu of notice payments are subject to Class 1 NIC'S if they are contractual or paid under a legal entitlement, but otherwise they are excluded from earnings for NIC purposes.