Redundancy Calculation - 12 week average pay with overtime

[smithyithy]

Hi, asking for a friend..

They're taking voluntary redundancy from their retail role and have been given a figure from HR.

Their contract is 12 hours per week on an hourly rate,, which equates to just over £100/week, and is what the redundancy figure is based on.

However being retail, they regularly work overtime, the past few months during lockdown most weeks have been ~25 hours per week.

Reading online there seem to be conflicting guides about whether or not overtime is included when calculating the average of the last 12 weeks..

Can anyone advise on this? When is / isn't overtime used as part of the calculation? Is there official wording or is it down to the employers discretion?

[2 sMoKiN bArReLs]

Gov says:

Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.

[2 sMoKiN bArReLs]

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

[smithyithy]

Cheers, we've looked at Gov.uk, ACAS etc. but regarding whether overtime is included in that average, it's hard to find a black and white answer..

[2 sMoKiN bArReLs]

smithyithy said:

Cheers, we've looked at Gov.uk, ACAS etc. but regarding whether overtime is included in that average, it's hard to find a black and white answer..

Actually, it may not be that simple

Check this article

http://www.redundancyexpert.co.uk/overtime-calcula...

[smithyithy]

Yeah that's where we're not sure, that site says:

"Overtime will only be included in your normal working week hours if your employment of work stipulates that you have to do it as part of your job. If you are doing overtime of your own accord than it will not be calculated into your redundancy pay."

I suppose in that case it might not be included as the overtime is not 'mandatory', but then what does 'of your own accord' mean? At the place of work, they're asked if they can work extra hours when there's more work to do, they can say no, but it's not as if the employees are free to pick up overtime as and when they feel like it..

[2 sMoKiN bArReLs]

Indeed. Employer asks employee to do overtime. Who does the work & then says "pay me please"?

Where ever I've worked we've included overtime (rightly or wrongly!) in the calculations.