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Could anybody please advise re redundancy and maternity leave?

10 replies

MamaG · 27/01/2009 12:22

Its looking extremely likely that I'm going to be made redundant. I'm on mat leave at the moment earning just SMP. Have received a calclation of what I'll receive as follows:-

  1. Redundancy pay - X weeks pay = £
  1. 1 month's pay net of tax and NI
  1. Holiday pay from 1/1/09 to date of termination
  1. and 3. I understand
  1. Will that be 1 month's usual, non maternity leave, pay?
OP posts:
prettybird · 27/01/2009 12:28

Don't know the answer to your Q2 - but your holiday pay should include all your holidays you have accrued while I have been on mat leave - plus if the one-month's pay is Pay in lieu of notice, any holidays you would have accrued during that month should also be added to the holiday pay owing.

MamaG · 27/01/2009 12:34

I also need to know if the Redundancy pay would be subject to tax and NI?

Thanks prettybird

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traceybath · 27/01/2009 12:36

Redundancy pay is tax free up to about £30k if i remember correctly - pretty sure you also don't pay NI.

Also - i was made redundant whilst on mat leave as the whole office was closed but was given a compromised agreement and better pay-off as it was recognised i would struggle to find a job as was pregnant at the time.

MamaG · 27/01/2009 12:37

Thanks Traceybath

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prettybird · 27/01/2009 12:41

Redundany pay is definitely free of tax and NI up to £30k.

Your 1 month's pay could be tax free too: if it is pay in lieu of notice (PILON) and it is not mentioned in your contract that they can give you PILON, then it is deemed to be "damages" and therefore tax free.

Holiday pay is taxable.

llareggub · 27/01/2009 13:59

MamaG, I've just read through the definition of a weeks pay on here and annoyingly, maternity isn't mentioned. Now I'd hope that you'd be paid your normal weeks pay, but it isn't explicit. I think you should call ACAS for advice.

llareggub · 27/01/2009 14:00

Statutory redundancy is capped. Have they told you whether the payment will be capped or will it be a weeks pay?

MamaG · 27/01/2009 14:56

Thanks all

I'll ring ACAS

OP posts:
whinegums · 27/01/2009 15:13

Hi, I was made redundant whilst on mat leave, and my month's notice pay was paid at my mat leave rate, not my normal rate (swines).

MamaG · 27/01/2009 15:16

Thanks whinegums

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