Redundancy pay / National wage

[sytra]

His last payslip has the following info, it doesn't say how much weekly they paid so I assume it is £100.28 / 12 = £1.92 pw. Cumulatives Total gross £15,617 Taxable gross £15,602.39 Tax paid £818.60 Employee NI £894.84 Employers NI £1029.08 Pens'able gross £15,905 Ees pension £81.83 Ers pension £100.28 Thank you

[mariefab]

OK, just to check, what amounts did Ers pension show on Dec, Jan and Feb payslips.

[sytra]

Dec was £75.86, Jan was £84.00, Feb was £92.14

[sytra]

Sorry to push the post but what would your advice be, should he try for the extra few pound or just accept the £8k +

[mariefab]

Sorry, I've been dithering about whether to leave it until after they paid him because there's one more thing that they could do to complicate matters if they had a heads up and actually got some proper advice. However, I think that that's an unlikely scenario so I post up a letter for your Dad to send/hand in.

[mariefab]

The method you have chosen to calculate my redundancy payment will result in an underpayment and a failure to pay the Minimum Wage.
The Government enacted Minimum Wage legislation and provided a calculator to enable employers and employees to check compliance. However, when I used the calculator and provided you with a printout showing that using your method would result in paying less than the Minimum Wage your response was that their method was wrong.

Leaving aside multiplying then dividing by 3 your calculation is:
£15600 / 12 months = £1300
£1300 / 4.348 = £298.97
£298.97 X 30 = £8969.20

The applicable section of the Employment Rights Act 1996 (s.221(2)) states that:
'the amount of a week’s pay is the amount which is payable by the employer under the contract of employment in force on the calculation date if the employee works throughout his normal working hours in a week.'

You note that your divisor of 4.348 is to account for earlier leap years (365.25/12/7).
You can't use an average of days worked in previous years any more than you could use an average of a week's pay in earlier years. The calculation date is in 2018.
As 2018 is not a leap year your method would need to use a divisor of 4.345.

Since December my gross monthly pay has been £1304.25.

£1304.25 / 4.345 = £300.17
£300.17 X 30 = £9005.10.

Further you haven't included the Employers pension contributions of £8.14 per month in your calculations. If you didn't know that you needed to include them you could google University of Sunderland v Drossou and check the many legal sites.

£1304.25 + £8.14 = £1312.39
£1312.39 / 4.345 = £302.04
£302.04 X 30 = £9061 20.

If you should stand by your decision to underpay me I will submit an Employment Tribunal claim to recover the shortfall and also report the failure to pay Minimum Wage to HMRC.