Employment Law

When an employee is fairly selected for redundancy and are not offered an alternative employment by their employer, or they decide to refuse the give, then they will be entitled to obtain redundancy payments from their employer. There are a number of reasons for becoming made redundant, your function in the company has turn out to be obsolete, or the company is restructuring or moving. To receive redundancy payments an employee should have worked for the firm for a minimum of two years and should not have waived their rights to redundancy pay or signed a compromise agreement earlier in their employment. If you have worked with a firm for much less then two years and you are created redundant, then you will not receive redundancy payments but your should still receive notice pay.

Your employer will pay you your redundancy payments and the responsibility of calculation rests with them as nicely. There is an agreed approach of calculation although, so it is reasonably straightforward for an employee that has been made redundant to hold their former employers to account.

The general rule of redundancy pay is that if you are under 22, you should receive at least half a weeks pay for every year that you were employed. If you are aged between 22 and 41 this amount goes up to a full weeks pay for each year worked. If you are aged 41 and above then you are entitled to 1 and a half times your weekly wage for each and every year that you have worked for the firm. These payments are tax-free up to the amount of £30,000 but if you receive any accrued holiday pay as component of your redundancy package, this is taxable. There is a ‘redundancy pay calculator’ on the government directGov internet site.

If the business you were working for is unable to afford to pay you your redundancy payments, then the payment can be made to you by the Redundancy Payments Workplace. The Workplace will pay you what you are owed out of the National Insurance Fund and then get the debt back from your former firm later.

Redundancy payments are your legal proper if you had been made redundant for fair factors that were outside of your control. These payments will support to study the waters and give you breathing time to look for some new opportunities.