Is this sharp practice?

Dec 05, 2007 08:47

At the end of August I was made redundant from High Storrs school after 33 years. I was given my minimum legal redundancy payment and led to believe that the cost of living increase, due from April, would be paid in due course. I have been doing supply teaching and last week I was in a school as the pay slips were being given out. There was some ( Read more... )

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Comments 13

dougs December 5 2007, 09:41:49 UTC
It seems likely that this policy may have been adopted by other local authorities -- indeed, by other employers generally -- and it's worth people checking even if their former employer is someone other than Sheffield.

Another thought:
> ... my minimum legal redundancy payment ...

Is this figure calculated as a function of your salary at the time of redundancy? And could a case be made for this figure to be recalculated, and any difference paid to you?

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Redundancy payment johannes_d December 5 2007, 09:55:33 UTC
"...Is this figure calculated as a function of your salary at the time of redundancy? And could a case be made for this figure to be recalculated, and any difference paid to you?..."

Redundancy payments are based on pay up to a statutory maximum (less than half my actual salary) employers can pay more than this if they wish. Sheffield did not so wish. I am entitled to no more redundancy money, however I will be entitled to an increase and back pay on my pension.

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Redundancy minimum payments the_magician December 5 2007, 14:20:10 UTC
0.5 week salary for each year up to the year you reach age 22, 1 week for each year up to 41, and 1.5 weeks for each year you are aged 41 or over.

Week's salary is defined as your average salary (lots of small print) but is capped at a maximum (currently) of £310/week (so roughly 16k/year, whereas the average UK income is 22k) ... however it *is* tax free, so when you deduct the tax payments from the 22k, you end up with 16k or thereabouts. (and if you would have been a 40% tax payer but only get six months pay and then a big redundancy, you can end up with a reasonable income without going into the 40% tax bracket that year, so check your tax code!)

When GE made me redundant, they (at their option) paid me one month per year for the 12 years.

Any redundancy payment over (approx) £30k does attrack tax ... but my colleague who had 20 years and only one year before retirement, got them to pay the excess over 30k as pension contributions and so it went in tax free, increased his pension and he ended up a fair bit better off.

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Re: Redundancy minimum payments johannes_d December 5 2007, 16:34:43 UTC
Yes but there is also a maximum of 20 years that are taken into account so the maximum statutory redundancy for a person at least 60 years of age would be 20 *1.5* £310 or £9300. If you are younger than 60 it would be less even if you have 20 years. Anyone paid more than this is getting a settlement above minimum either because of the employer's generosity or because of a favourable employment contract.

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lil_shepherd December 5 2007, 10:19:34 UTC
It's sharp practice but not illegal, and reminds me of some of the covenants Sheffield tried to put on right to buy purchases (some of which were illegal, such as being force to sell back to the Council.)

Go get 'em.

(Edited for aberrant apostrophe.)

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