Redundancy questions

[Frazzled2207]

Hello, I'm about to be formally told I'm at risk of redundancy. I suspect i will be made redundant but struggling to understand the ins and outs.

Have been at same company 9 years. Understand that I get 9 weeks statutory redundancy payment and get given 9 weeks notice (that I might be given payment in lieu of, for part of it at least). Is that right ?

What's the process between getting told I am at risk and being given notice? No consultation process as such as just two of us affected. There was a consultation of sorts last week when three of us were told only one would be retained which turned out not to be me.

(There is a chance of internal redeployment which may complicate matters)

Is it right that the 9 weeks statutory payment is capped at 498 per week but is tax free? And will my payment in lieu of notice be taxable as normal?

Hr have also mentioned that there are possible tax complications with the payment in lieu of notice arrangement but haven't quite understood- do you know?

Tia

Assuming you were 22 or older when you joined the company and you are now less than 41 and you have completed a full 9 years you are correct that you are entitled to 9 weeks notice and 9 weeks redundancy pay. You are also correct that the 9 weeks statutory payment is capped at £489 (you got the digits in the wrong order in your post) and is tax free. Note that your employer can pay you more than the statutory amount if they want. The first £30,000 of any redundancy settlement is not taxable.

They must have an individual meeting with you to discuss your redundancy. Apart from this it is up to your employer to determine the process they will use. It needs to be clear and fair but, provided it meets those requirements, it can be whatever they want.

The tax implications of payment in lieu of notice depend on your contract. It may be taxable or it may form part of the £30,000 tax free allowance. If it is taxable you may pay more tax on the sum than you would if you worked your notice, although that should be put right when you do your tax return at the end of the tax year.

Thank you that's very helpful. They won't pay me more than the statutory amount but should I definitely expect the 489 amount? My (part time) earnings are slightly more than this.

Shall check my contract regarding other things.

I have had individual meeting and there are more to come-
I don't have any reason to believe the company will screw me over (despite dubious reasoning for the redundancy in the first place) but obviously want to be clear what I'm entitled to.

If you are earning more than £489 per week gross (i.e. this is the amount you are actually being paid, not the amount you would be paid if you were full time) then yes, that is what you should get.