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Original poster

I went to work this morning and they let me go. Offered me a pay off which I’m not sure about?

28 replies

OhThatHappenedWhatNow · 11/10/2023 18:31

Under 2 years service. Small family run company.
cited loss of sales this year and offered me 2 months pay with the leaving date of today.

my contract states 1 month either side so I am wondering if their extra month’s money offered should be ex-gracia? If they had offered an extra months salary in a redundancy consultation that would be tax free but I’m wondering if I’m confusing the two with the under 2 years service?

OP posts:
Original poster
OhThatHappenedWhatNow · 12/10/2023 07:59

Squiggles23 · 11/10/2023 20:19

Yes - they can make it as an ex-gratia payment as part of a settlement and then it’s tax free (anything up to £30k).

The whole amount can be included as you can accept the settlement in lieu of notice to make the whole amount tax free (and leave with immediate affect), depends how you agree it as to whether you have to work one of the months notice.

It might have to be supported by a settlement agreement though which if so you have to get a lawyer to review for you. If this happens then just ask them to pay for your legal fees too (it’s fairly cheap firms like Landau law will do it for around £500).

I would try to negotiate up because it’s a settlement and so saving them the time and cost of going through a more formal redundancy. So don’t be afraid to ask for 3 months total.

Also make sure you’ve considered impact on you as if you need to renew your mortgage or tenancy soon it might cause you problems. So need to factor that in to any negotiations.

If you need any support feel free to message me as I have a bit of experience with this. X

Thank you so much for your kind offer, I’m going to read the Gov link and come back to you.

and thank you to everyone else for their help.

OP posts:
PickledPurplePickle · 12/10/2023 08:02

Yet another thread where people are wading in without understanding the law

Original poster
OhThatHappenedWhatNow · 12/10/2023 08:22

PickledPurplePickle · 12/10/2023 08:02

Yet another thread where people are wading in without understanding the law

Is there something you can tell me that isn’t mentioned here already and is factual?
I’m assuming I’m going down the right path with the Gov links above to start with.

OP posts:
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