redundancy calculations
Discussion
Hi,
Anyone have any expert knowledge?
Being made redundant, employer has made a calculation of payment which equates to around 4 times HMRC statutory minimum.
I have challenged on the basis that they have only used basic salary in their calcs where they give me benefits such as car allowance, pension contributions etc which increase overall package by 30%.
Seems odd to me that the payment is called compensation but does not fully compensate me for loss of earnings inc benefits.
My challenge has been rejected with no reason just a bland repeat of how they make the calcs.
Is it worth seeking out legal advice or should I just accept a decent multiple over the HMRC rate?
Anyone have any expert knowledge?
Being made redundant, employer has made a calculation of payment which equates to around 4 times HMRC statutory minimum.
I have challenged on the basis that they have only used basic salary in their calcs where they give me benefits such as car allowance, pension contributions etc which increase overall package by 30%.
Seems odd to me that the payment is called compensation but does not fully compensate me for loss of earnings inc benefits.
My challenge has been rejected with no reason just a bland repeat of how they make the calcs.
Is it worth seeking out legal advice or should I just accept a decent multiple over the HMRC rate?
Unless you have a contractual or custom and practice arrangement that is higher than the statutory minimum and on a different basis to your calculation it is hard to see on what basis you would be challenging.
They legally have to pay you x, they are going to pay you y which is more than x, the way they calculate y is irrelevant.
I wouldn’t waste my money on a lawyer unless you have a document that says that they have agreed to calculate redundancy on a different basis to what they have offered or you are confident that every other redundancy they have made has been on a different basis to how they have calculated yours to the extent that this creates a custom and practice - usually lots of redundancies over a long period of time (and very hard to prove).
If they use a compromise agreement for the redundancy they will pay for you to get legal advice before you sign it, the lawyer will tell you the above.
They legally have to pay you x, they are going to pay you y which is more than x, the way they calculate y is irrelevant.
I wouldn’t waste my money on a lawyer unless you have a document that says that they have agreed to calculate redundancy on a different basis to what they have offered or you are confident that every other redundancy they have made has been on a different basis to how they have calculated yours to the extent that this creates a custom and practice - usually lots of redundancies over a long period of time (and very hard to prove).
If they use a compromise agreement for the redundancy they will pay for you to get legal advice before you sign it, the lawyer will tell you the above.
The contractual obligations are not publicised, it could well be that their calcs are fair but I can't help try for more.
What grips me is that my managers have always quoted salary plus car allowance in pay award discussions yet they suddenly ignore this when working out my settlement.
I know of people in head office who receive the car allowance yet never leave the building, I bet those boys see the allowance as salary!
What grips me is that my managers have always quoted salary plus car allowance in pay award discussions yet they suddenly ignore this when working out my settlement.
I know of people in head office who receive the car allowance yet never leave the building, I bet those boys see the allowance as salary!
Statutory redundancy is capped at £464 per week or thereabouts (depending on age). Assuming your basic is more than that then commissions don't come into it.
PILON is, however, a different kettle of fish.
You probably should take some advice for what it costs. Mind you, if they are offering 4x you'd best not poke them too hard.
Breadvan might be along soon with proper advice
PILON is, however, a different kettle of fish.
You probably should take some advice for what it costs. Mind you, if they are offering 4x you'd best not poke them too hard.
Breadvan might be along soon with proper advice
My redundancy consultation period finishes tomorrow.
If they behave the same way our company has, then any suggestions you make for improvements will be met with a polite version of :
We're paying you more than statutory, shut the f**k up.
Benefits don't seem to matter in redundancy calculations. Even normal bonuses don't seem to matter.
With Pilon, you do get your benefits - but even those seem open to interpretation. Apparently, some of our benefits are "not contractual" - so we can apparently kiss goodbye to those too.
On the upside, I now despise a company I already intensely disliked so saying goodbye really isn't that hard....
If they behave the same way our company has, then any suggestions you make for improvements will be met with a polite version of :
We're paying you more than statutory, shut the f**k up.
Benefits don't seem to matter in redundancy calculations. Even normal bonuses don't seem to matter.
With Pilon, you do get your benefits - but even those seem open to interpretation. Apparently, some of our benefits are "not contractual" - so we can apparently kiss goodbye to those too.
On the upside, I now despise a company I already intensely disliked so saying goodbye really isn't that hard....
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