This blog deals with what financial payments you should receive from your employer if you have been made redundant.
If you are made redundant, you will be entitled to the following contractual payments:
- Your usual salary up to the Termination Date. The Termination Date is the date your employment comes to an end.
- Your notice. For more information on your entitlement to notice pay please see our blog: https://lincslaw.co.uk/blog/employee-rights-notice-entitlements/
Your can receive you notice in two ways, either:
- Through passage of time. You remain employed during you notice period and either work as normal for this period, or you can be placed on Garden Leave.
- Alternatively, your contract may allow your employer to pay your notice as payment in lieu (sometimes referred to as a PILON). These means that you are not required to work your notice period, but instead your employer will pay you the equivalent amount as a lump sum.
- Your accrued but outstanding holiday up to the Termination Date. Your employer will need to calculate how many holiday days you have accrued up to the Termination Date.
Again, your employer has two options on how to deal with outstanding holidays. They can: –
- Require you to take any outstanding holiday prior to the Termination Date.
- Alternatively, they can pay you the equivalent holiday pay amount as a lump sum.
As all the above payments are contractual payments, they will be subject to the usual income tax and national insurance contributions.
Am I Entitled to a Redundancy Payment?
Your entitlement to receive a Statutory Redundancy Payment will depend on whether you have been continuous employed for over two years at the date you are made redundant.
If you have been employed for under two years at the date of your redundancy, then, unfortunately, you will not be eligible to receive a statutory redundancy payment. However, you are entitled to receive the above contractual payments.
If you have been employed for over two years, then you will be entitled to receive a statutory redundancy payment. There is a specific formula used to calculate a statutory redundancy payment which considers your age, your years of service and a statutory capped weekly income.
What Happens If I Have Not Been Paid Correctly?
If your employer fails to pay your contractual entitlements or your statutory redundancy payment, you may have the ability to bring one or more of the following claims in the Employment Tribunal:
- Statutory Redundancy Payment
- Breach of Contract/Wrongful Dismissal
- Unlawful Deduction from Wages
There are strict timescales for lodging a claim with the Employment Tribunal. Please see our blog for more information on Employment Tribunal time limits: https://lincslaw.co.uk/blog/what-are-the-time-limits-for-starting-an-employment-tribunal-claim/
Therefore, it is important to take legal advice as soon as possible if you consider you have not been paid correctly following your redundancy.
How Can Lincs Law Help You
If you have any concerns about the payments you have received following redundancy, please contact us for a free, no obligation initial enquiry on 01522 440512. For further information on the services we offer, please visit our website: https://lincslaw.co.uk/services/employees/
Specialist Employment Solicitor