Redundancy: does holiday pay extend the length of service?

[Nottseagull]

I worked full time for an LA from 8 May 1989 until 30 April 2004, but my redundancy was only calculated on 14 years service. However, I was due 1½ weeks holiday which was added to the final payment. Should this have extended the assessment to 15 years?

 

[Murray 17]

My wife is an HR advisor and says, unfortunately, no.

Your service is calculated up to your termination date. The holiday that they owed you and have now paid has no effect. Sorry to be the bearer of bad tidings.

 

[The Great Cornholio]

I'm amazed that my lot are letting me not take any holiday during my notice period - meaning they have to pay me another 23 days pay. And they are sticking to to the original termination date of 30th September even though the 6 months doesn't start until I receive the letter - which they are yet to send - so every day that passes without a letter is another days pay in lieu of notice they owe me - nice to see them promoting best value and all that!

 

[seagullsovergrimsby]

When I left BT they made me take all of my outstanding leave entitlement which meant having 2 weeks off and then working a 4 hour shift on my last day of service. Then the bastards paid me my final months salary and didn't pay out my redundancy sum for another 6 weeks.

 

[Nottseagull]

I, also, received several weeks' pay in lieu of notice; does this not extend the length of service?

 

[Lord Bracknell]

Relevant service for the purpose of calculating local authority pension entitlement is calculated on days worked, not completed years. Redundancy pay uses completed years, though.

 

[seagullsovergrimsby]

I lost about 60 days service of my entitlement when attending joint union/management meetings as it was classed as special leave for union purposes , I was reimbursed by the union but the special leave wasnt pensionable.

 

[Dandyman]

My wife is an HR advisor and says, unfortunately, no.

Your service is calculated up to your termination date. The holiday that they owed you and have now paid has no effect. Sorry to be the bearer of bad tidings.

What he said.

 

[Garage_Doors]

So if for instance you worked 10 years , = 10 weeks redundancy + holiday entitlement.

Can they give you notice that your being made redundant the next day, ?
So you only get 10 weeks redundancy + holiday entitlement.

Or do they have to give notice of redundancy ?

If so what is the minimum notice of redundancy that they can they give you ?

 

[Lord Bracknell]

So if for instance you worked 10 years , = 10 weeks redundancy + holiday entitlement.

Can they give you notice that your being made redundant the next day, ?
So you only get 10 weeks redundancy + holiday entitlement.

Or do they have to give notice of redundancy ?

If so what is the minimum notice of redundancy that they can they give you ?

Redundancy selections and notice periods : Directgov - Employment

Redundancy notice periods

If your employer has selected you for redundancy you must be given a notice period before your employment ends. The statutory redundancy notice periods are:

* at least one week’s notice if you have been employed between one month and two years

* one week’s notice for each year if employed between two and 12 years

* 12 weeks’ notice if employed for 12 years or more

However, you should also check your contract of employment because your employer could have set out longer notice periods.

Payment in lieu of notice

In some cases your employer may have included a payment in lieu of notice clause in your employment contract. This means that your employer can end your employment contract with no notice, however they must give you payment for all of the pay you would have received during the notice period. This includes the equivalent amount of pension contribution or private health care insurance.

 

[Garage_Doors]

Thanks LB,

so for 10 years service they have to pay 10 weeks salary + 10 weeks redundancy + holiday entitlement.

What if the company that makes you redundant becomes insolvent, i assume you become one of their creditors, and not get anything

 

[e77]

Thanks LB,

so for 10 years service they have to pay 10 weeks salary + 10 weeks redundancy + holiday entitlement.

What if the company that makes you redundant becomes insolvent, i assume you become one of their creditors, and not get anything

The government step in and pay the statutory minimum, I believe.

 

[Dandyman]

Thanks LB,

so for 10 years service they have to pay 10 weeks salary + 10 weeks redundancy + holiday entitlement.

What if the company that makes you redundant becomes insolvent, i assume you become one of their creditors, and not get anything

There is also a requirement for consultation and notice before redundancy. You won't as far as I am aware become a creditor although there is IMO an argument that you should.

 

[The Great Cornholio]

Thanks LB,

so for 10 years service they have to pay 10 weeks salary + 10 weeks redundancy + holiday entitlement.

What if the company that makes you redundant becomes insolvent, i assume you become one of their creditors, and not get anything

All depends on your age as well.

The calculation for your statutory redundancy pay is based on:

* how long you have been continuously employed
* your age
* your weekly pay, up to a certain limit (£380 current maximum)

You will get:

* 0.5 week’s pay for each full year of service where your age was under 22
* 1 week’s pay for each full year of service where your age was 22 or above, but under 41
* 1.5 week’s pay for each full year of service where your age was 41 or above

For example: If you are 45, your weekly pay is £380 per week and you have completed 15 years’ full service, you will receive £6,460 statutory redundancy pay.

Step one: 1.5 weeks x 4 years full service when you were 41 or above = 6 weeks

Step two: 1 week x 11 years service when you were under 41 = 11 weeks

Step three: 6 weeks + 11 weeks = 17 weeks x £380 (max weekly wage) = £6,460 statutory redundancy pay

I'm just very pleased that I can take advantage of our current redundancy terms because I am not sure if they can change it without notice if it is more than the statutory pay. Does anyone know if they can do this? As I have got 10 years service, I get 4 weeks pay per year as per my companies policy. But if they are anticipating a lot more redundancies in future, can they go back on this policy for existing staff. I know once I get my letter I am locked into those terms which is great but I have colleagues who are staying but worried about the future.

 

[Nottseagull]

There is also a requirement for consultation and notice before redundancy. You won't as far as I am aware become a creditor although there is IMO an argument that you should.

there is IMO an argument that you should ??
If he is not paid monies that he is due then there is no question that he becomes a creditor!