Redundancy advice...

[Danniiaddy]

Hi all!
I was just wondering if someone could give me some advice as I can’t get in touch with CAB.
Employer insists they are right and I am wrong...
So...received notice of redundancy yesterday and the redundancy amount offered seemed a bit lower than I had calculated.

I worked prior to furlough in March - 20 hrs per week.

We were asked to sign a new contract during furlough to reduce our hours to 18 hrs per week effective 27th July.

I’ve not been at work since March when I was furloughed.

Work is saying they are only Paying my redundancy based on my ‘new contracted hours of 18 hrs’
I read that redundancy has to be based on earnings for the 12 weeks prior to furlough, ergo 20 hours a week.

They are adamant they only have to pay me for the 18 hours as I signed a new contract even though I’ve not worked those hours at all as I’ve been on furlough

I know it’s not a massive difference but it’s the principle if I’m right...

TIA x

The average earnings calculation is only used where pay is variable based on hours or amount of work or similar.

If you have normal working hours and fixed pay, the amount used for redundancy pay is your normal week’s pay.

That’s not to say you don’t have an argument- you do. But it’s not about the average. Your argument is that the 18 hours a week is not your ‘normal week’s pay’ because at the time of your redundancy, you had not ever worked/been paid those hours- despite a notional start date of 27 July the change has not yet been implemented. A cynic would also say perhaps they deliberately implemented a variation mid-furlough knowing they were going to make redundancies in order to save on redundancy pay.

It’s not clear and I suspect this kind of scenario is going to be one of many tribunal claims over the coming months/years exploring the interactions between furlough and employment law.

It’s up to you what you do. I would argue that the variation had not ever taken effect, therefore that is not your normal weekly pay, and therefore your redundancy pay should be calculated on the 20 hours. But they may well resist, and you’ll need to decide whether to take it further.

Thanks, I am going to argue it. The difference isn’t much but it’s the principle. It’s not worth taking to court for the shortfall amount but I’ll definitely raise it with ACAS if I need to.