Statutory redundancy terms

[mikey-r]

Hi,

Unfortunately, Mrs R has been served an 'at risk of redundancy' notice. There are no vacancies so she will be being made redundant.

Now, I understand that if you have less than 2 years service you get nothing. However, my question is, is the 2 year period deducted from actual service when calculating terms?

The company have set up an online redundancy calculator and when she completes it with her 14 years service, the result is calculated on 12 years.

Thanks in advance!

[Mr E]

They might have a maximum of 12 years - especially if they're offering a month per year or something.

[Magic919]

Doesn't sound like statutory terms are being used. You can find those on the Gov UK site.

[mikey-r]

Thanks for the responses.

The maximum they allow is 20 years. Looking at the end compensation figure, it's considerably more that the statutory minimum..... does this mean they can set their own terms i.e. not including the first 2 years of employment?

[Magic919]

If they want to be more generous, then that's up to them.

[Europa1]

Try using this: https://www.gov.uk/calculate-your-redundancy-pay/y

[anonymous-user]

mikey-r said:

Thanks for the responses.

The maximum they allow is 20 years. Looking at the end compensation figure, it's considerably more that the statutory minimum..... does this mean they can set their own terms i.e. not including the first 2 years of employment?

Anything above statutory is in the gift of the employer effectively. They may have decided to pay a month per year of employment capped at 1 year (ie 12 months), and, as this I guess, will be more than the stat payment she would have received then no issue doing it.

[mikey-r]

So, essentially, if they're willing to pay more than statutory then they can dictate terms etc.... seems fair enough to me.

Thanks all!

[williaa68]

Generally if they are paying more than the statutory minimum they will require your wife to sign a compromise agreement waiving her legal rights. They should also pay a small sum for her to take legal advice, unless she has a union she can turn to. The first £30k is tax free and if she's getting more than that and you don't have an immediate need for the money she could see if they will let her put the balance into her pension (assuming she hasn't maxed out her pension contributions). The consultation period once she's been served with the at risk notice can be quite short but there's no harm in trying to string it out by applying for any other jobs that are available even if she isn't likely to get them. It'd be a brave employer that made someone redundant while they were in the process of seeking suitable alternative employment.....