Redundancy help please

[coffeemeup]

Company is looking for voluntary redundancies before going compulsory.
Been working there for 4 years 10 months.
My contract states it is a 3 month notice period to leave from me and them.
There is enhanced redundancy pay but that is also based on years in service.
As the 3 months notice puts me over the 5 year mark, then do they pay me based on 5 years even if they don’t want me to work notice?
Hopefully I’ve put this in the right place but say if not… thanks!

They would normally only increase the redundancy pay to 5 years of service if you work your notice period, and therefore have over 5 years service at the point of termination. Otherwise you would receive redundancy pay for 4 years and then your three months notice as a payment in lieu of notice. I’m an employment lawyer. Good luck OP

Thanks. This is really helpful although not what I wanted to hear lol.
One other quick question (hopefully)… they are calculating the redundancy payments on the average of the last 3 months pay and then creating the average weekly pay. The last 3 months happen to be lower due to Christmas etc (we get various extras like overtime etc)… on the other hand the last 2 weeks which wouldn’t be included are pretty high.
Would they recalculate at the time of redundancy, or are these figures now it? Hope that makes sense!

The safest practice would be for them to calculate using the reference period up to the termination date. I would ask that they use a 52 week reference period ideally as that will give a true snapshot of your actual salary, particularly if it varies across the year. There is no obligation for them to do this though. Ordinarily bonus wouldn’t be included as basic salary, however if you can demonstrate that it is regularly paid and has effect become contractual due to custom and practice they may be willing to agree to this. Voluntary redundancy entitlements are always tricky as employers are not under any obligation to offer these. The legal obligation is to pay statutory redundancy which is usually much less generous. It’s worth raising your points in an amicable way if you can, as pushing too hard can often make the employer withdraw voluntary redundancy packages and stick to compulsory redundancy on statutory pay if they believe it will be too costly. This is particularly risky if there are a number of employees affected. Sorry you are in this situation. My advice would be play the long game, be polite and amicable and try and negotiate the best deal for yourself.

I was made redundant when I had been at the company for 7 years, 11 months and 2 weeks. When they first calculated my redundancy package it was for 7 years service. As a gesture of good will when I was made redundant they moved me up to 8 years as I would have completed the 8 years during my notice period had they not paid me for my notice period.

https://www.acas.org.uk/your-rights-during-redundancy/redundancy-pay

This covers what happens to redundancy pay when notice is paid off. They should add the statutory notice period on to your length of service, which in your case will be 4 weeks.

Depending on the dates involved this may edge you over the 5 years. They aren't required to take into account contractual notice however may honour 5 years as a gogw if the statutory notice doesn't get you across the line, always worth asking.