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Redundancy. Bonus

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  • Redundancy. Bonus

    hi all I am new to this forum .
    ok so I have accepted my redundancy my question is my wage is made up of a basic plus bonus I receive this bonus EVERY week and this has been paid for over 25 years here is an example let’s say my basic is £200 per week and my bonus is £100 per week my gross wage is £300 although the bonus is not written in contract does this qualify as custom and practice should it be calculated in my redundancy pay thanks.
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  • #2
    Unless you are on an enhanced redundancy payment the weekly pay is capped at £538 per week, therefore if your basic pay takes you above this level then whether the bonus payment should be included or not will change the calculation.

    However if your weekly rate of pay is below this cap then unfortunately the answer is a bit more complex, although given that the bonus has been the same amount there have been some precedents where regular bonuses (eg. a regular shift bonus, a regular monthly departmental bonus) have all been regarded as pay and therefore should be included in the week’s pay for the purpose of calculating redundancy pay.

    If the redundancy is calculated by reference to a contractually enhanced scheme, then the employer can determine how a week’s pay is calculated, so long as it is in excess of the statutory minimum and that should be stated in the terms of the scheme.

    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

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