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Redundancy during maternity leave- quickmquesiom

5 replies

Lainey1981 · 02/02/2011 17:02

Hello,
I am currently on maternity and my department is being restructured. I have been advised my role is at risk, and having seen the new propsed strcture there is nothing i would want to apply for so will just take the redundancy.

I had a feeling this would happen so before i went on leave i had HR clarify the position re maternitympay, and have been advised that would still be entitled to all my maternity pay which is great.

Soooo my question is this, can I ask for my company to pay me the remainder of my maternity pay as a lump sum as part of my redundancy package ( i get 3 month's pay)? Is it likely that they will agree to this rather than continje to pay me monthly?

Thanks

OP posts:
Lainey1981 · 02/02/2011 17:10

Apologies for typos

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flowery · 02/02/2011 17:27

You can certainly ask. They don't have to though, although many would.

Lainey1981 · 02/02/2011 18:11

Thanks for the reply flowery.
Think will ask. Out of interest do you know if there is anything different cost wise to the company if paid as redundancy? Obviously for me it would mean no tax hurrah, and no student loan hurrah

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flowery · 02/02/2011 19:34

Um, not necessarily tax-free, no. If it's a redundancy/termination payment it would usually be tax-free up to £30k. But if it's maternity pay you are entitled to contractually, just like salary, and they are just continuing to make those payments, it may well be taxable. Making a payment in a lump isn't what makes it tax-free, it's what the payment is actually for, and how it's dealt with under the contract.

They may well even decide the easiest thing is to delay your termination date until you've had your 3 months pay, in which case it would be taxed as normal.

Lainey1981 · 02/02/2011 20:04

Oh Sad
The 3 months pay i was referring to is my redundancy entitlement. I am not due to return to work until October so approx 8 months. I guess if they don't put it in my redundancy pay off then i'll be no worse off but no harm in asking

Thanks for the advice!

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