Enhanced redundancy pay

[DaisyDukesAuntie]

I am facing redundancy and have c.15 year’s service.

there is no written agreement on enhanced redundancy calculations.

if you know your company’s enhancement calculation would you be willing to share for comparison?

I know the statutory amount I’d get, just interested to know what enhancements others offer.

the last time I was made redundant, I got 3 weeks pay for every year of service which was very generous and was in the 90’s, so am pretty sure these kinds of enhancements are unheard of these days!!

thanks

I agree that the amounts have come down. I recently got 3 months pay after 5 years of service. The others got 2 months pay after fewer years service, and they initially offered me the same. The company only went up to 3 months for me because I argued about my longevity and also that I was full time for the first 3.5 years and part-time for the past 1.5. So given my calc was based on the part time salary only (annoying but legally right) I said I felt I deserved more.

Usually the x weeks per year of service is maxed out at say a years salary. And If your company doesn't have a stated calc policy (like mine) then they might not do it as a formal calc, and just offer a certain value.

I got £19300 tax free after 3 years service in a salary of £111000 and paid the notice period in usual taxable fashion.

If there is no document setting out enhanced redundancy, why would it matter what other employers offering ? You’ll be getting statutory only, won’t you?

I was made redundant a couple of years ago. With PILON, unused holiday, enhanced redundancy (can't remember the rate, but it was capped st 12 years service; I had more years of service,) and an ex gratia payment that was basically not to talk about it, I got a bit less than a year's salary, which was fortunate as I didn't get another job for over a year, though to be fair, I didn't look hard for all thst time. Obviously up to £30k redundancy is tax-free, so I did get taxed on the rest of it.

As a general rule, unless you have it in a contract, enhanced redundancy isn’t offered. I’ve been at risk for redundancy 5 times and only offered enhanced once and that was because the redundancy was based on the company being sold and them needing to retain certain staff to support the transition.

Ours is still good compared to others on here (not contracted but going by recent colleagues packages) is 4.5 weeks per year of service. With an additional multiplier depending on your age (older you are the bigger the multiplier).

I am 57 and have 14 years service just now and if I was made redundant with their current calculations and my age I would calculate 95 weeks. It would then be capped, but can't remember if it is capped at 18 months or 24 months.

£30k would be tax free, and depending on circumstances at the time, if I could afford it, I would probably put a whack into AVCs (could put in up to £60k a year in total into pension each year and I believe I can also use any outstanding allowance from previous 3 years) so it wasn't all taxed at higher tax rate and retire a bit earlier.

Keeping my fingers crossed🤞for a tap on the shoulder in 3-4 years time!

We pay statutory (1 week earning per year) but don't cap the earnings or the length of service.

That’d be my dream scenario, I’d get 19.5 weeks of my (uncapped weekly) pay so that’d be good!