AIBU to wonder why we have to wait a month for redundancy payment?(15 Posts)
Hi there - my husband has been made redundant, well, there is now a 30 day consultation period, but to all intents and purposes this is what's happening. His job is redundant from April 30 - however, he has been told he will have to wait until May 28 (the next pay day) for his payment. Is this fair? or are WBU to wish that it was paid sooner?
We knew this was coming, and had made plans as we had thought he would receive his redundancy on the day he left.
Can he insist that he is paid the money on his last working day? It seems a little unreasonable to expect him to have to wait practically a whole month before he receives his money.
I've often read these boards but never needed to post until now!
Any help/advice/telling off for being unreasonable gratefully received!
Won't he receive his normal salary at the end of April?
Yes, he'd actually normally be paid on the 25th of the month, but because the department that he works for has been taken over/bought by another company and their payroll runs on the 28th this is why they're saying the payment will be made on May 28. Plus, because of the way this has all been worked out, there now has to be a 30 day consultancy period.
It's really annoying and I just wondered whether we would be unreasonable to ask if the company could make the payment earlier? Surely, it can't be that difficult with direct bank transfer etc! It's kind of frustrating because we had made plans when he was first informed of his job being at risk of redundancy back in November.
I think my redundancy payment was a month after I finished. It was certainly separate from my final pay.
Ah, ok. Thanks for that. Just that I keep reading online that it should be made on the last day of employment. Bit annoying really as this has been ongoing since November and would like to get it all done and dusted.
I think it is because the consultation has to be genuine - to make a payment at the end of April, they'd need to get everything ready to make it (payroll cutoff etc) during the consultation period. That would suggest that it isn't consultation, and that a final decision has already been taken.
Obviously in reality you may feel that is the case - i.e. redundancy is a foregone conclusion, but the employer can't do anything that would confirm that, as then employees could make a claim that the consultation wasn't genuine and (i think) receive compensation.
Yeah, I get that. It's more the having to wait until the 28th of May to get the actual payment when, to all intents and purposes, my husband leaves his job on the 14th of April and leaves the employment of the new company on 30th of April. It's just annoying and means that this is dragging on even longer. He's getting a decent payment and I'd rather it was sitting in our bank account, not theirs!
I just don't understand why they can't make the payment as soon as the consultation period is over - seems a little unfair to me. I realise I'm probably coming across as very whingey about all of this!
It's frustrating and I do sympathise, but there are very strict rules surrounding consulting and redundancy. It sounds like the companies involved are following them to the letter which is no bad thing,
They have to have a meaningful consultation period to protect themselves from claims later on. Reading the timelines you've given it looks to me like your dh is getting a months 'garden leave'. Nothing is official till the 30 day consultation is complete and at that point he will officially have his notification of redundancy - so the 4 week notice period that employer and employee have to give to leave a contract.
I doubt you're going to be able to negotiate the date, it is what it is. Again I know it's frustrating (truely I do sympathise - I've been in the same consultation for 18 odd months - that's not normal and frankly disgusting but I digress) but their timescales are what you have to work with.
Rejig your plans to accommodate the extra month and focus on the fact an end is definitely in sight.
Oh and your allowed to whinge!
Redundancy/consultations are stressful, no one finds them a walk in the park - if you found the whole thing a breeze you'd be weird
It's perfectly normal and usual for redundancy payments to be made the next payday after employment finishes, so I'm not sure where you've read online that it should be on the last day of employment.
As long as he gets paid as normal for April at the end of April it shouldn't cause you any hardship should it?
i had mine on the day however mine skipped the 30 consultation and offered us 3 months pay as compensation they allowed us into work the following day left us in the canteen all flipping day (we were told we would just get our cheques and we could go) i rang ACAS who told me i have to be paid by the end of the normal working day (3pm) they just made it
ring acas they help
Hi all - thanks for the messages. Ouch @ Imnotmadeofeyes for having to wait 18 months - that's not fair at all!!!
Flowery - you're absolutely right that getting paid at the end of April shouldn't be any hardship, but there were things that we had planned to do in May that are now going to have to be cancelled - basically, after being told one thing and now different things are happening because of the way that part of the company has been sold.
Because of the way this has all been done it's as if an extra 30 days consultancy has been added by the new company on top of the original 60 day consultancy period that the rest of the company (and my husband) had already been through. I do realise that this is legally how things have to be done - it's just frustrating and annoying. Quite honestly, I'll be glad when this whole thing is done and dusted - it's stressful!
Oh well, onwards and upwards as they say!
His last day of employment IS the end of May - the company have the consultation period to end April, then your husband is given his four weeks notice "officially" which takes you up to end of May. The fact that he's not, actually, "working" during the period, is a red herring - the last day of employment and the last day of "work" are not necessarily the same thing. The company appears (on what you've said here) to be doing everything correctly.
You need to double check your husbands official leave dates and his notice period. If the 30 day consultation period has just started then at the end of the 30 day period he should either be given four weeks notice (assuming that those are his terms) and then finish employment at the end of May or be paid in lieu of notice.
Consultancy period and notice period do not run at the same time.
Its important you check if your husband is planning to sign on (even if it is just for NI contributions) or activate any insurance policies.
Also I'm not sure on this but one time I was made redundant and paid in lieu of notice. I also received an additional payment for what would have been the company's pension contribution for that period along with my redundancy payment. I paid no tax on any of this money.
It is related to HMRC rules and regulations.
If money is received when he is still 'employed' (ie in April) it is a non-bone fide redundancy and he will not get the first 30 grand tax free.
I am sure they could pay him in April, but it will then be treated as wages. I had to wait a month for mine, - the wages in the previous month cover expenses until payout appears.
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