It would be very unusual for your contract to mention redundancy but you do need to see if there is a clause that says that the company has the right to pay you in lieu of notice. This is sometimes found at the same place that they talk about how much notice you're entitled to, or sometimes there is a separate clause, so you need to read it carefully.
Is there a PILON clause in your contract OP? If not then doing so would be a breach of contact and the payment they give you would therefore need to compensate you for the financial losses you incur as a result of not being given your contractual notice.
Looks like they are talking about PILON route. Nothing is clear really so it's frustrating trying to calculate ifs and buts. If PILON is the route they take then I will lose my 90% for 6 weeks and will have to apply for MA but at least ill be able to go temping for two or three months to try and make up some of the money I am going to lose. Thanks all, will keep you updated!
What a shit and stressful thing to happen when pg. Sorry you're having to deal with this OP. I would look at the Maternity Action website. Lots of free fact sheets on every aspect of your maternity rights. There's a fact sheet in redundancy while pg. they also have a free helpline for legal/employment rights advice. Good luck
I was in a similar situation, except for the temping time. I literally was two days into the qualifying period for SMP from my employer when I was made redundant. I can't remember the name of the legal case my union mentioned, but they told me there was a case where an employee sued her old company for timing her redundancy just so that they didn't have to pay SMP - they lost and got into a lot of trouble. If they try to mess you around, it would be worth trying to find out about that to frighten them. I was paid my SMP as a lump sum in Aprill 2011 and was taxed on it very heavily - I had to wait until after the end of the tax year, in April 2012 to get it back from the tax office, although it was only one form and a quick call, they were very helpful. Very annoying though.
Remember the dates are critical. There is a big difference between being given two months' notice and being paid in lieu of two months notice. There are very good rights calculators on the BIS (you gov) website, which will help. Agree, it's all a bit difficult if you leave one employer and join another in that critical period
Is this really right? Surely if sunflowerlady is no longer employed by the company by the time she gives birth, the company won't make any payment to her, as she will no longer be on their payroll, and the claim will have to be for Maternity Allowance.
Because if I work for another employer after I have been made redundant, my old employer no longer has to pay my mat pay( and new employer wouldnt pay me a bean of it as i would be 7 months pregnant). It's the 6 weeks at 90% I can't afford to lose and obviously would be easier if the remaining 33 weeks would be automatically paid rather than me having to go down the MA route. This all depends on them paying me a lump sum or not.
Thanks flowery. I will prob finish at the end of May and Mat Pay should kick in start of Aug. If I temp during June and part of July it will stop my Mat Pay. Can I reasonably expect work to compensate me for June/July seeing as I can't work and won't be able to earn any money?
You might well be worse off if they pay you it all in one go if it would otherwise straddle two tax years, but that may well not be the case for you by the sounds of things, in which case it will probably not make any difference in the long run.
I have just found out that my whole department is being made redundant. We are about to enter a 30 day consultation period and after that I am on two months notice, this will bring me to within 15 weeks of my baby's due date. Providing they don't invent any loopholes, I should qualify for SMP but can anybody tell me if this will be 6 weeks at 90% and then 33 weeks at SMP? I am unsure if the 6 weeks at 90% is classed as SMP legally? To me it's a lot of money and would like to know if there is any reason why they don't have to pay it. Also if they say they will pay my SMP as one lump sum would i not be worse of on Tax and NI? Can I insist they pay it monthly as normal? I've got a 1-1 with HR soon and would like to be forewarned and forearmed!! Thanks to anyone who can help me!