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Redundancy payout

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  • #16
    Firstly can I just point out that since your employment ended on 25th March (your post #5) if you are still trying to deal with the company directly then you have 3 months less a day in which to make an employment tribunal claim if you are thinking of doing that. The start of this process will be Early Conciliation via ACAS.

    I presume from what you have said you are still trying to claim that you should have been entitled to the enhanced redundancy package, despite the change to the policy occuring at the same time as you signed a new contract in Sept 2021 and were notified of a new employee handbook containing this policy.

    So effectively the statement is setting out that as an overarching standpoint when dealing with a redundancy situation they will comply with the statutory obligations set out in the Employment Rights Act 1996 in regard to the conduct of redundancy and redundancy payments. What is then set out is clearly an enhancement to the statutory redundanccy payment requirements in section 162 (2) of that Act. What you have extracted also clearly states that "The company will provide compensation as set out below ..." so there is every expectation that prior to the change to the policy that is what any redundancy payment would be based on.

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    • #17
      atticus

      They are saying that they will apply the policy but the statement in question (in bold) reduces their liability to statutory. In essence the policy compensation promise is irrelevant in the policy.

      The Redundancy Policy wording is:

      The company policy is to comply with the law both in letter and in spirit. The company will provide compensation as set out below to employees who continue their' employment up to the official termination date or else leave earlier with the agreement of the company. In all cases the provisions of the Employment Rights Act will apply:-
      1. 1 week's pay for each year of service below the age of 30.
      2. 2 weeks' pay for each year of service between the ages of 30 and 40.
      3. 3 weeks' pay for each year' of service beyond the age of 40,
      In calculating redundancy 1 week's pay will be the average of the 12 weeks' gross pay prior to the date of termination of employment.
      Their argument wording is ' Furthermore the Handbook states that the "In all cases the provisions of the Employment Rights Act will apply" which would have capped the Redundancy Pay at the Statutory Limit" '.

      I'm reading their argument as that they believe the inclusion of this statement renders the enhanced policy calculation void in all cases. Would that not be misleading/duplicitous to have a contradictory policy? My interpretation is that they will compensate based on the calculations given in a - c and the statement in question simply states statutory is the legal minimum. If not what is the purpose of having this policy?

      Thanks, Justin




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