any employment lawyers able to answer question on redundancy and SMP?

[driedapricots]

i posted a few days ago but didn't get any answers! i'd be really grateful if anyone with experience in this field could respond - i have a quick question. thanks so much

[Stinkermink]

Not a lawyer but HR professional, what's your question?

[driedapricots]

thanks stinker
so, my employer is disolving the company at the end of this year, making me redundant. i am on mat leave and not due to finish it for another 12 weeks or so. will i still receive SMP and if so, who from...is my employer liable?

[Stinkermink]

Ok.. Well SMP is the same as Maternity Allowance, and can be drawn directly from DSS even if you are unemployed. You should still be paid SMP as your employer claims that back and pays it to via payroll. However, you should be entitled to some redundancy I would have thought too. Give me a minute and I'll find some info.

[Stinkermink]

redundancy info
I think this page should help you. Not a definitive answer, but you are protected to a degree by maternity rights. Howeveer, if you are in the unpaid portion of mat leave you should still have this time accounted for in terms of total redundancy pay. HTH

[driedapricots]

yes i had a look here. i am entitled to some straight redundancy money and i understand that side of it.
where i am unclear is the SMP period. i have about 12 weeks left in the SMP period (the £100 odd a week period) so will my employer have to calculate that and add on as a lump sum to my final redundancy package then? and if they do does that mean i can't find employement again until that period ends? does that make sense?!

[flowerybeanbag]

They don't have to add it on as a lump sum, they can continue paying it as normal on a weekly/monthly basis, even though you are not technically employed any more.

The normal rules will apply about working during your maternity pay period - ie that you can't start work for another employer and receive SMP at the same time.

If you are lucky enough to get a job straightaway starting in the next 12 weeks, you will need to inform your employer so they can stop your SMP.

[driedapricots]

thanks flowery. so as i understand it, my employer must continue to pay the SMP up to the time i return to work / or when SMP period comes to an end? and that's the case even if the company no longer exists? (as stated in OP the company will cease on 31 Dec 2010)
on another but related point, if i am in receipt of SMP but want to set up a ltd company so that i can begin to seek freelance employment is that ok.. the freelance employment wont be fruitful immediately.
much appreciated

[flowerybeanbag]

If your company is unable to pay it they can fill in a form saying so and you will get it from the government instead. Same as redundancy pay or anything like that.

You can't work for another employer, which includes a company owned by yourself, but I wouldn't have thought all the setting-up stuff for a ltd company would 'count' as working, so the chances of you wanting to do anything that counts as working during the 12 weeks are minimal I would have thought.

[driedapricots]

flowery, if you're there would you poss know about employment lawyers rates? my company are now disputing my notice period and want som advice
thanks

[RibenaBerry]

That's a very difficult question. Anything from a free initial chat to £500 per hour, depending on who you want to instruct and where in the country you are. Obviously, normal is somewhere in between, to the extent there is a normal.

Have you tried ringing the ACAS helpline? they are free and, although sometimes a bit hit and miss on very technical issues, usually sound on the basics.

[driedapricots]

thanks ribena
i tried acas, they just directed me to the tax office.
i have a new query now too - which is basically i don't have a contract...or i did but it's gone astray! my employer is saying that they only have to give me 5 weeks notice whereas i would have to give them 3 months if i were to leave. therefore the notice period i get paid for now i am being made redundant is just 5 weeks. this seems so unfair!!! it probably does say this in the contract but the fact is i can't check it...what can i do?! i have also heard conflicting info re tax. some say the notice period of redundancy pay gets taxed others say it doesn't.. all very confusing and as my company have got things very legally wrong in the past i really want to be in a position of knowledge when i finally receive the redundancy letter/package

[RibenaBerry]

Why do they think that they only have to give you 5 weeks notice. Is that based on their standard contract?

If neither of you can find the contract, but agree that there was one at some stage, a Tribunal would have to try and work out what it was most likely it said. A good guess is what the standard says.

On taxation, redundancy pay is tax free up to £30k. pay in lieu of holiday is always taxable. Pay in lieu of notice is sometimes taxable and sometimes can be tax free (up to £30k all in)- it depends on certain technicalities on the drafting of the contract.