Redundancy - can they make you work your notice?

[CountessDracula]

The Count is in the some-may-say unfortunate position of possibly being made redundant. He is worried they may make him work his notice and he will therefore miss crucial test matches.

If you have a 3 month notice period do they have to pay you 3 month's redundancy? And can you just leave immediately if you choose?

i think it depends on whats in teh contract. I have just been made redundant from my very senior trainee office junior position and do not have to work my notice. Sorry to hear the test matches are coinciding with possible workdates

Yes it is dull isn't it

I think he would rather be lounging than having to bide time at his desk if it does happen. Fair enough I say!

So would he be entitled to 3 months pay tax free?

You need Sis or Freckle to advise on that. I cant remember which bit is tax free - sorry.

Years ago I worked for a local paper and they changed the printing system which meant that 3/4 off the pre press and press room staff were being made redundant. They were given about 3 months notice and did have to work thei notice. They were however allowed to take time off for interviews and if they got another job the company would release them to start the new job but I think that this was discretionary.

Don't know if things have changed by now- sis'll be able to advise

Thanks all

Redundancy is always tax free!!!

I feel some sick leave coming on on test match days, and maybe some other days too, so it doesn't look suspicious.

Sorry but, yes, they can make the Count work out his notice rather than pay him a tax-free sum equivalent to the notice (ie pay in lieu of notice). If the Count finds other work quickly and wishes to leave during the notice period, in most circumstances, he will allowed to leave early and retain the right to the redundancy pay but not the outstanding notice.

As others have already said, he would be entitled to take 'reasonable' paid time-off to find alternative work and statutory redundancy pay is tax-free and anything above this (eg if they pay him his actual weekly pay rather than apply a cap of £270/280 per week,) the sum above the stautory amount may be taxable.

Hope he is okay and they pay him vast quantities of money to watch test matches!

Sis -I was always of the understanding redundancy was taxable? (maybe wrong thou as it's been a while since I was doing pure payroll)

Think it depends what the line of work is and circumstances (such as if a handover is needed or the business is very competitive) as to whether he would be required to work notice or take "Gardening Leave". Presumably (caveat : you'd need to check legally) he'd still be entitled to prorata holiday entitlement during his notice period so he could just book time off for the Test matches !

As to the tax liability I'd understood payment in lieu of notice to be taxable but Redundancy Pay (the amount based on service) to be non-taxable. Is that true ? Perks, like company car, still apply during notice period too.

Message withdrawn

Lizs is correct - I was made redundant as part of a mass downsize 18 months ago and was the employee rep for negotiations in my dep. A lot of people had to work their notice, but I went on gardening leave 2 months before my official end date.

and yes it was 30 K tax free and the rest was taxed at normal rate. This still applied at the end of the 03/04 tax yr as I had to fill it in on my tax return

munnzieb, as I said, technically only the statutory redundancy pay is always tax-free but I think most companies would call any sum over and above the statutory redundancy pay and ex-gratia payment which would not be subject to tax and NI unless it exceeded £30,000. DISCLAIMER: I AM NOT A TAX SPECIALIST OR A LAWYER!

Yup, it's 30K

Cap of £270 a week??!?!?!?! What is that then? Can't be true.

Thank you all for your advice!

take a look here

"Please enter your weekly pay (Maximum £270)"

Why max £270? Seems rather unfair if you earn more

cd -that it the statutory amount, ie the minimum to which he will be entitled - in practice, may companies will give more generous terms as an ex gratia payment

Aha thanks Iota

The £270 limit (which will go up to £280 on 1st Feb) is the statutory cap. So if someone earns less than that, they will get redundancy pay based on actual earning but those who earn more than the cap will, in law, only be entitled to a maximum of £270/280 per week when calculating their redundancy pay. Of course, many employers choose to pay on the basis of actual pay even if the employee earns more than the cap and that 'extra' is not a statutory entitlement.