Redundancy advice

[Nibble]

Obviously the best place to go is CAB but in the meantime; a friend of mine has been told she is being made redundant at end of month and that the company may not be able to pay her final wage and a payout is out of the question as they have no money. I understand the government can give you some payout through National Insurance. Does anyone have any advice or been through same situation?

 

[Super Perry Digweed]

Just going through redundancy myself so have been coming up to speed on the subject. To be honest I'm not sure where your friend stands in terms of the company not paying her final wage - that to me sounds pretty dodgy and surely isn't acceptable (breach of contract). Definitely seek CAB / legal advise on that one.

In terms of redundandy packages, there is a statutory amount - however it is not that great. For starters you need to have been working for the company for more than 2 years to even qualify (less than 2 years and redundancy packages are discretionary - up to the company what they pay). If your friend has been there more than 2 years then she is entitled to a weeks pay for every years worth of service - not particularly brilliant either.

Hope this helps.

 

[Nibble]

Sorry to hear that. I was made redundant a couple of years ago, luckily I negotiated a pretty good apyout despie only being there a few years. Cheers, Yeah you don't get much do you. Just thought it was extremely cheeky of them to wait until they are totally out of money before they let her go. They knew it was coming ages ago.

 

[Westdene Seagull]

SPD is correct on the SRP. Will the company still be trading once she's made redundant ? If so they have no legal right to withhold her money and she should be seeking legal advise ( some solicitors will give you 20 minutes or so free to determine if you have a case ).

At the very worst she should tell her company she believes they can't withold the money and that she is seeking legal advise - it can't make it any worse as they're getting rid of her !

 

[Tricky Dicky]

I don't know, but I would assume, if the company cannot afford to meets its obligations in terms of redundancy, then surely it must go into administration or liquidation and she becomes a creditor.

As SPD says, legal min redundancy payment is not very much anyway, and only kicks in after 2 years service.

When I was redundantised last year, after 13 years, I got very little in terms of actual redundancy, but fortunately had been on 3 months notice, so I got that at least.

 

[Hatterlovesbrighton]

If the company doesn't then the Government will pay the statutory redundancy.

As for the wages, I think they will be classed as a creditor to be paid out as whaen any of the assets are disposed of.

 

[Beach Hut]

A mate of mine faced this situation and the government paid the statutory redundancy rate as the firm went bust.

 

[MOG]

Insolvent employers
If your employer is declared insolvent or cannot pay your redundancy pay, you can apply for a direct payment from the National Insurance Fund. To do this you must first write to your employer asking for your redundancy pay. If they are still unable to pay you then you should fill out a RP1 form available from the Insolvency Service.

The above is a quote from the Directgov site.

For more info go to -

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_10026616

 

[Nibble]

cool, thanks chaps

 

[Castello]

If someone is made redundant they are entitled to statutory redundancy pay. this is calculated at 1 week pay per complete year worked provided they are aged between 18 and 40 for each of those years. for each year under 18 it is calculated at 1/2 weeks pay per year and for each year aged 41 and over it is 1 1/2 weeks per year worked.

There is a salary cap that is currently £380 per week, which means the maximum salary per week you will be paid is £380.

Also 20 weeks is the maximum statutory redundancy that will be paid.

The employee is also entitled to a minimum notice of 4 weeks and rising by an extra week per year over 4 years til a maximum of 12 weeks is paid.

If an employer is financially unable to pay the redundacy the state will pay it. I believe through the Department of Work and Pensions.

Unfortunately as a Shop steward for the last 20 years I have had to deal with way to many redundacies.

All of this information and more is available from the TUC advice site Worksmart: your rights: redundancy - from workSMART.org.uk

Sorry to hear your friends bad news, but good luck to them.

 

[Freddie Goodwin.]

I've been made redundant 4 times, but that was many years ago.

not very nice but, if my current emplyer offered it, under their current terms, then I'd be tempted.

 

[Norman Baker suck my lozenge]

If someone is made redundant they are entitled to statutory redundancy pay. this is calculated at 1 week pay per complete year worked provided they are aged between 18 and 40 for each of those years. for each year under 18 it is calculated at 1/2 weeks pay per year and for each year aged 41 and over it is 1 1/2 weeks per year worked.

There is a salary cap of current £380 per week, which means the maximum salary per week you will be paid is £380.

Also 20 weeks is the maximum statutory redundancy that will be paid.

They are also entitled to minimum notice of 4 weeks and rising by an extra week per year over 4 years til a maximum of 12 weeks is paid.

If an employer is financially unable to pay the redundacy the state will pay it. I believe through the Department of Work and Pensions.

Unfortunately as a Shop steward for the last 20 years I have had to deal with way to many redundacies.

All of this information and more is available from the TUC advice site Worksmart: your rights: redundancy - from workSMART.org.uk

Sorry to hear you bad news, but good luck.

Some really helpful advice,
From the nasty unions.
and to think all us union bods do is call strikes and inconvenience the public.
UP THE WORKERS.

 

[Castello]

Some really helpful advice,
From the nasty unions.
and to think all us union bods do is call strikes and inconvenience the public.
UP THE WORKERS.

My life would be so much easier and less stressful if call strikes was all we did

 

[Skintagain 1983]

Some really helpful advice,
From the nasty unions.
and to think all us union bods do is call strikes and inconvenience the public.
UP THE WORKERS.

Who'd trust those nasty unions? It's just like paying insurance for your car! Hang on... Isn't that a good thing?

 

[Skintagain 1983]

My life would be so much easier and less stressful if call strikes was all we did

This.

 

[simmo]

Obviously the best place to go is CAB but in the meantime; a friend of mine has been told she is being made redundant at end of month and that the company may not be able to pay her final wage and a payout is out of the question as they have no money. I understand the government can give you some payout through National Insurance. Does anyone have any advice or been through same situation?

If she has worked there more than 2 years this is nonsence, unless the company is to go into liquidation, then as others have mentioned the state should step in and pay her redundancy money.

At the end of the day if she has been working there 2 years or more she should get some money (x years service X £380 which I think is tax free??).....if she has been there more than 4 years she should get an extra weeks notice for every year she has worked, 5 years, 5 weeks, 6 years, 6 weeks notice etc giving her more time to get another job (and extra salary for those weeks). Do not let the company BS her. Also go to the CAB as others have stated.

 

[Garage_Doors]

To get the government payout for redundancy takes 1-2 month,
to get backdated wages is approx 6 month,
I have had my Government payout, poxy £380 a week, which was less than half ! but still waiting for the back wages owed. Told by the receiver I won’t get this until the end of the year, but good news is it will be in full as I’m a preferential creditor.

 

[Garage_Doors]

If someone is made redundant they are entitled to statutory redundancy pay. this is calculated at 1 week pay per complete year worked provided they are aged between 18 and 40 for each of those years. for each year under 18 it is calculated at 1/2 weeks pay per year and for each year aged 41 and over it is 1 1/2 weeks per year worked.

There is a salary cap that is currently £380 per week, which means the maximum salary per week you will be paid is £380.

Also 20 weeks is the maximum statutory redundancy that will be paid.

The employee is also entitled to a minimum notice of 4 weeks and rising by an extra week per year over 4 years til a maximum of 12 weeks is paid.

If an employer is financially unable to pay the redundacy the state will pay it. I believe through the Department of Work and Pensions.

Unfortunately as a Shop steward for the last 20 years I have had to deal with way to many redundacies.

All of this information and more is available from the TUC advice site Worksmart: your rights: redundancy - from workSMART.org.uk

Sorry to hear your friends bad news, but good luck to them.

this is interesting
"The employee is also entitled to a minimum notice of 4 weeks and rising by an extra week per year over 4 years til a maximum of 12 weeks is paid."

Been paid the redunancy, but had nothing for minimum notice, i would be due 12 weeks pay !
how do i claim it ?

 

[simmo]

this is interesting
"The employee is also entitled to a minimum notice of 4 weeks and rising by an extra week per year over 4 years til a maximum of 12 weeks is paid."

Been paid the redunancy, but had nothing for minimum notice, i would be due 12 weeks pay !
how do i claim it ?

I pretty much completed my Dad's form when this happened to him about 18 months ago. In the form that the liquidators sent you I think there is a box where you put how many years service you were there. Look again at this form.

If you have been there 12 years you are entitled to 12 weeks notice and with that 12 weeks pay if you haven't got work in those 12 weeks after the company folded. However, it was as if you are serving that notice at your work i.e you have to serve out that notice before you get another job (accepting another job is fine but if for e.g after 8 weeks you take up another post, you lose the other 4 weeks money).

This money would also be paid 12 weeks down the line as well.

 

[Garage_Doors]

I pretty much completed my Dad's form when this happened to him about 18 months ago. In the form that the liquidators sent you I think there is a box where you put how many years service you were there. Look again at this form.

If you have been there 12 years you are entitled to 12 weeks notice and with that 12 weeks pay if you haven't got work in those 12 weeks after the company folded. However, it was as if you are serving that notice at your work i.e you have to serve out that notice before you get another job (accepting another job is fine but if for e.g after 8 weeks you take up another post, you lose the other 4 weeks money).

This money would also be paid 12 weeks down the line as well.

I took another job 2 weeks after , so guess i can only claim 2 weeks ?