Redundancy pay . URGENT !

[tml]

Hi,

Can anyone explain me how redundancy pay is calculated?
I stared work 25th September 2006 and I'm being made redundant 21st December 2014 my contract is saying:

" Your normal working hours will be 36 hours per week. Additional hours may be offered from time to time at the above rate (it was £7 per hour when I started) but are not compulsory. "

I got pay raise to £7.2 in 2009 and another to £7.5 one just over two months ago (week before receiving redundancy letter). For the past five years I've been working every week over 40 hours and even my holidays are paid 40 hours per week, however my employer calculated my redundancy pay at the rate:

8 weeks x 36 (as in my contract) x £7.2

I think it should be

8 weeks x 40 (as that's my normal hours for the past five years) x £7.5

I know it may seem like not too much of a difference but it is a lot of money for me - especially before Christmas.
Does anyone know what documents should I get when I'm finishing, my company is closing down so it will be difficult if possible at all to get any paperwork after 21st.
So far all I got was redundancy letter and verbal promise of the lower than expected leave pay.
Any help and advice will be much appreciated.

Kind regards and thank You in advance,

Tom

[teaboy2]

Re: Redundancy pay . URGENT !

Your right it should be 7.5 since that is your current rate of pay.

As per the hours though, were you paid over time for the hours your worked over the contracted hours of 36 hours per week? Or if paid same rate, were the additional hours shown on your payslip separately to your 36 contract hours?

Also are you 41 or over?

Paper work wise, you'll get your notice of redundancy remuneration, confirming amount paid etc, and final pay slip showing your redundancy remuneration, and you should get your p45 too!

[tml]

Re: Redundancy pay . URGENT !

I'm 34 and my payslip shows basic pay 40 hours.

[teaboy2]

Re: Redundancy pay . URGENT !

Then its 40 x 7.5 x 8

[tml]

Re: Redundancy pay . URGENT !

I know my manager is trying to pay me less - his calculation. How can I dispute it and what regulations should I quote.
Thank You for your help.

[teaboy2]

Re: Redundancy pay . URGENT !

I know my manager is trying to pay me less - his calculation. How can I dispute it and what regulations should I quote.
Thank You for your help.

Simply state that your basic rate is for 40hrs a week at 7.5 not 36hrs at 7.20. Tell him the hours are your implied contracted hours since you have been working them every week and been getting paid basic rate for 40hrs, and your basic hourly rate is 7.50 not 7.20 as you had a pay rise in (x year). So even though no new written terms were provided when your hours and pay were increase, they are sill implied terms of your contract and therefore your redundancy should be worked out as 40 x 7.5 x 8 + Plus accrued holiday pay and any other monies that are due.

[tml]

Re: Redundancy pay . URGENT !

Thank You for all help.

[tml]

Re: Redundancy pay . URGENT !

So l got my sums today and it's the way I was worried it's going to be. Tried to argument that in the way you advised me to but was left only with "take or leave it" option as contact is for 36 hours at 7.2. What should I do now. I'm a bit upset after over 8 years employer is treated us that way. But as he's closing the business he doesn't care about us at all.

[teaboy2]

Re: Redundancy pay . URGENT !

Well if the company is closing, if you take it to tribunal, chances are they'll be no company left to answer to your claim. Best bet is to just take the money and in future make sure you ask for your contractual terms to be updated.

Though you could contact ACAS and inform them of the situation, and how they have for the last 8 years paid you a basic for 40hrs per week and 7.5 per hour since x year. Acas will then contact the employer and speak to them, though no guarantee the employer will listen!

[tml]

Re: Redundancy pay . URGENT !

Not a great news ;/
So if company (it's limited company - I don't know if that matters) is closing, director of that company isn't personally responsible?
Are you saying that in that situation he can pay or not and as there will be no company after 22nd of December there will be no one to chase. :/

[teaboy2]

Re: Redundancy pay . URGENT !

Not a great news ;/
So if company (it's limited company - I don't know if that matters) is closing, director of that company isn't personally responsible?
Are you saying that in that situation he can pay or not and as there will be no company after 22nd of December there will be no one to chase. :/

If its a limited company, then no the director is not financially liable for what the limited company owes.

Has the company gone into liqudation? or just closing down?

If closing down, then yes unfortunately you would have no one too chase, even if you named the directors as individuals, whilst the tribunal can still hear your claim, they can not hold individuals liable to remedy. I.e. order the directors to compensate you etc.

If its in liquidation, then your best off talking to the liquidators and pointing out your pay slips confirm you were on a basic hourly rate of 7.5 and on 40 hours a week.

If no liquidator, then given the difference between what your getting as things stands and what you should get as redundancy pay is approximately £330 - By time you have paid tribunal fees, or even civil court fees, and the stress and time it will take for your case to be heard, you'd be better off just forgetting about it and moving on to pastures new. Sure if it was say 2-3 grand, then yeah it be worth it, but £330, whilst a lot of money in the short term, it doesn't last long at all!