Hello All - I'm hoping someone might be able to help me on this exciting topic!
I'm about to be made redundant. My "payout" will be a combination of redundancy payment and salary (e.g. notice period etc...). this will make my last months salary much larger than normal. How does this work for student loan deductions? As i understand it nothing will be deducted from the redundancy payment bit but the salaried bit is open to the same deductions as usual?
this should clear my remaining student loan (only 12 years after graduating!) and may leave me in credit. What will happen? Will the student loan company take the full amount and then refund? Or something else????
i've rung and asked the student loan helpline but they've refered me back to my employer?
I think they will deduct as normal from the "salary" part, so take hefty chunk from you. As far as I know they will refund you but only after their year end, so you could be in for aong wait!
I was made redundant whilst on maternity leave, company wanted to give me all 9 months stat mat pay at redundancy date but confirmed I would then get hit with a large student loan deduction. I refused and they paid me monthly until the end of my mat leave.
Hope you have something new lined up, not a nice thing to go through but with hind sight the best thing that could have have happened to me!
your situation sounds remarkably similar. I'm about to go on mat leave and negotiating whether to be made redundant now or at end of maternity leave. I think I'm going to be worse off financially if I go now but probably better off emotionally ☺
Timing is awful isnt it! I got the call a couple of days before me due date, went in to meet hr day before I was due and was in labour within hours if the meeting! Has DS in my arms the following morning. Stress definately good for bringing on labour.
It's a hard decision, I was just very wary of the tax and student loan deductions, etc that would be deducted from a one off payment which would not if you were paid monthly. Also I didn't really trust myself to budget it out to last full 9 months, preferred to be given my monthly allowance!
in a way I'm lucky- still got 6 weeks before due date so hopefully got some time to get it sorted.
I need to look more at the deductions thing. I'm also crap at budgeting so lump sum might not be good.
However I'm also going through tribunal due to sex discrimination resulting in the redundancy. Im not looking forward to pursuing it whilst having small baby to look after. if I get pay off I'm sure that one of the conditions will be to drop the case.
also would mean that I could start job search sooner I think.
it's so stressful. I've worked for them for 8 years and then dared to have a baby and now I'm in this shitty situation!
Sounds awful! On the other job front, if I remember correctly If I had opted for lump sum up front, I had to sign something agreeing that I wouldn't get another job until SMP period over. If I started working again and earlier I would have to pay back for that period. Probably worth dissing out where you would stand on that. Good you've got 6 weeks to get things sorted, I actually felt quite sorry for the poor woman who had to phone me at home to give me the news! I didn't really like the place I worked though so was really happy not to have to think about returning there after. Don't know what your plans are but can be tough going finding part-time work, I got very lucky hope you do too!