Redundancy Entitlement Have you just been made redundant? If so you may hold some questions about your Redundancy Pay that you would like answered. The primary question might be “Am I entitled to Redundancy Pay?” Yes. You will be permitted to redundancy pay if: - • You are made redundant • If you have at least 2 years continuous service since 1 October 2006 there is no age constraint You must be working as an employee under a contract of employment. The agreement may be written or verbal or a combination. By turning up to work for an employer there is an agreement of employment. Self-employed people and members of a partnership do not qualify. Directors may be employees if they work under a contract of employment. They are not likely to be eligible if they have a controlling interest in the company. You will also require to have been actually dismissed- i.e. not resigned. You might be invited to take voluntary redundancy, but this should still qualify as a dismissal by reason of redundancy. Your next query might be “What is the pay?” A lot of employers regrettably will only pay the statutory minimum redundancy pay, whilst others are more generous, for example, 1 month’s gross salary for each year worked. Generally, blue-chip companies and financial institutions are found to be more charitable with their pay. It is also the situation, that even where an employer may only pay the statutory minimum, they will enhance the redundancy payment by making a goodwill lump sum without reference to a precise formula. This is sometimes the case where the dismissal based on a purported redundancy is on shaky grounds. An employer can make an improved payment to take into account any shortcomings in the actual redundancy procedure and to ward off any potential tribunal claim. In turn the employee may be asked to sign a compromise agreement which will avert you from bringing any following unfair dismissal claim. A specialist employment law solicitor is best placed to negotiate a severance package for you after taking into account the power of your claim. If you are being paid only the statutory amount, this will be governed by: • How long you have been continuously employed by your employer; • How your years of continuous service relate to a particular age band; • Your weekly pay, up to a legal limit, revised as at 1st October 2009 to £380.00. The amount of redundancy pay is calculated as: • Half a week’s pay for each complete year of service where age during year less than twenty two • One week’s pay for each full year of service where age during year is twenty two or above, but less than forty one. • One and a half weeks’ pay for each full year of service where age during year is forty one+
Article Source: http://www.articlecontentprovider.com/articlesubmit
Have you recently been made redundant? If so you may have certain questions in relation to your Redundancy Pay that you would like answered.
If you would like to learn more about your redundancy entitlements then visit http://www.cityredundancies.co.uk You can also obtain Employment Law Advice with a “FREE CONSULTATION- NO WIN NO FEE AVAILABLE” by visiting http://www.cityredundancies.co.uk/employmentlawadvice.htm
Please Rate this Article
5 out of 5 4 out of 5 3 out of 5 2 out of 5 1 out of 5
