Redundancy question

[Vicky2212]

I have been advised that I am being made redundant with effect from 31st March 2017. My question relates to calculating my redundancy pay. I have worked for my employers for 5.5 years and I am contracted for 23 hours per week. My hourly rate of pay is £6.70 therefore I calculate my weekly pay to be £174.80. The problem is my employers are insisting that my weekly pay must be averaged over a 3 month period (November, December and January), which makes my weekly pay £167.94. Their reasoning for doing this is because some employees are paid different rates of pay for different aspects of work and these hours are not included in their contracts. My hours never change and I do not get paid different rates of pay so why should my weekly pay be averaged? What are my rights?

Many thanks

[ULA]

Re: Redundancy question

Hi @ Vicky2212 and I am sorry to hear that you are facing a redundancy situation.

In terms of your specific question then if you’re paid weekly and your pay doesn’t vary then the calculation for redundancy payment should be based on your weekly pay. If however your pay varies or you’re not paid weekly, you have to use a 12-week period for working it out.

I do have a couple of questions in regard to some of the figures you have given in your post, firstly if you are paid £6.70 per hour and work only 23 hours per week then your weekly pay is actually £154.10. Also in terms of your hourly rate of pay without it being too personal a question can you let me know what age category you are in - 25 years and over or 21-24 - its just I have a query as to whether you are being paid the correct level in accordance with the minimum wage rate of pay.

[Vicky2212]

Re: Redundancy question

Thank you for your reply. I actually earn £7.60 per hour, I typed it incorrectly. I am paid monthly so my pay varies each month depending on the number of days I have worked in the month. However I always work 23 hours per week, unless I take annual leave.

[ULA]

Re: Redundancy question

Thank you for the clarification about your hourly rate of pay.

You have confirmed you are paid monthly therefore your employer is using the calculation of your weekly rate of pay based on your average weekly pay over the past 12 weeks.