Please help me work out what we can get

(14 Posts)
StressedNHSemployee Sun 11-Sep-16 11:45:32

My DH is going to be made redundant. He has been at the company 10 years and is currently 49yrs. Using the online calculators we have worked this out to be a payout of around £6000.

Am I correct that he should also be given either 10 weeks notice (and so will continue working in that time for them) OR 10 weeks pay?

We have read so much over the last 3 days that we are getting muddled!

OhTheRoses Sun 11-Sep-16 11:52:32

No. Every complete year of service after the age of 41 counts as 1.5 years. So, for example:

Two years before 41 = 2 + 8 years post 41 x 1.5 = 12. Therefore 14 x the compulsory redundancy rate. This is payable free of tax and NI. Plus the contractual notice period which may be worked or paid in lieu (with tax and NI deducted). Don't forget any outstanding annual leave (tax and NI payable).

Hope that helps.

StressedNHSemployee Sun 11-Sep-16 12:03:03

Many thanks.

I just feel so unsettled by it all.

DH fortunately took out a policy 3 years ago to cover for redundancy but I am so suspicious of companies trying to get out of paying up.

Does anyone know what benefits we will get? Again we have looked but are getting overwhelmed by it all.

I am thinking that he will get JSA but will the eligibility for this be affected by his payout and savings that we have got?

OhTheRoses Sun 11-Sep-16 14:32:52

Go and get advice from job centre re benefits. Sometimes it is better to take a compulsory rather than voluntary package.

The job market is better than it was a while ago - is your dh actively looking for alternatives?

StressedNHSemployee Sun 11-Sep-16 15:49:29

Oh yes. He is very motivated.

As soon as he got the news he updated his CV and started applying for jobs.

OhTheRoses Sun 11-Sep-16 20:34:47

Then with a bit of luck and the wind behind you all may be well.

Charlesroi Wed 14-Sep-16 02:58:50

He should get contribution based JSA (for 6 months)which goes on how many NI contributions in the previous tax year. It doesn't matter how much you've got in the bank. Housing benefit and council tax benefit is means tested so probably won't get that.
Think JSA is about 70 quid a week and it's important to sign on to get his NI credit - don't delay by even a day.

Good luck with the job hunting

StressedNHSemployee Sun 18-Sep-16 07:32:43

many thanks

I only work 17.5hrs per week. Will this affect our eligibility to benefits?

when my husband has to apply for JSA I understand they ask about savings - we have about £6000 - will he have to provide evidence of it to show there is no more than that?

lionsleepstonight Sun 18-Sep-16 08:51:42

The first 30k of redundancy payment is tax free, if he is paid he 10 weeks notice rather than works it, it will have the usual deductions.
Read your mortgage payment policy carefully, some don't kick in until a certain time period, e.g. 6 months and by then DH may have a job.
Your DH should soon get a letter from his company with an illustration of the estimated redundancy amount. Is it going to be enhanced or statutory? This amount will exclude the notice pay out.
Have you used the online calculator on .gov? It works out you statutory entitlement including the 1.5 over age 41 as mentioned by a p.p.

StressedNHSemployee Sun 18-Sep-16 11:55:13

His policy kicks in after 3mths but he has to be claiming JSA.

The redundancy payment that he will get will be enough to last for those 3 months.

After that he will claim JSA. But as we have a little bit of savings I am concerned that we will not be entitled to anything

Charlesroi Sun 18-Sep-16 17:21:22

I don't believe savings will affect JSA for the first 6 months because it is based on NI contributions. You'll need to be clear about what is pay in lieu of notice(so effectively still employed, with gardening leave, unemployment goes by the date on the P45) and what is the redundancy pay, though.
Please don't spend your way through the redundancy pay before claiming - your DH is entitled to JSA. Claims can take quite a while to process, the DWP make lots of cock ups and they won't be in a hurry to fix them - I'm afraid they really, really don't give a shit. Once you've got the JSA award letter get straight on to the council for housing benefit and council tax, then call HMRC for a tax credits claim form (for child tax credits). Don't not claim because you think you've got too much money, as you'll be asked for bank and savings statement. They'll let you know if you are not entitled to anything
Once you know exactly what's happening post back here and folks will help.

Chin up - it'll be OK.

StressedNHSemployee Sun 18-Sep-16 20:21:08

Thank-you

He is employed till the end of the month. He gets paid next week so they will owe him approx one week pay.

He is then being given payment for the amount of years he has been there. He also has the company's own enhancement plus pay in lieu of notice.

It has all been written down in columns so it is quite clear how it has all been calculated.

The only bit I don't understand is one of the columns saying "Additional redundancy payment - one weeks pay" it then states the amount of one weeks pay. I am wondering if this is the one weeks pay that he will be owed.

lionsleepstonight Mon 19-Sep-16 07:32:41

When he gets paid next week he should get all the money he is owed, pay, redundancy pay, payment in lu of notice etc. After that date he is no longer an employee so nothing should be outstanding. Is it a small firm?

StressedNHSemployee Mon 19-Sep-16 07:49:20

No. International.

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