How is a redundancy payment worked out?

bridan90

I have a few questions about redundancy I hope someone will be able to answer.

Is statutory redundancy worked out on your last year of service pay or is it an average of the last three years service?

Is there any law or guidance on ex gratia payments?

If you are offered 2 weeks salary on top of a statutory payment is that calculated in the same way as the statutory payment, i.e two weeks gross salary?

Would really appreciate any help at all. My husband has been offered voluntary redundancy and has been told that he will get 2 weeks statutory plus 2 weeks per year ex gratia. However having calculated the payment based on 4 weeks pay for 11 and a half years service it falls short by at least €5000.

My husband will be 59 years old this November.

Nody

bridan90 wrote: »

I have a few questions about redundancy I hope someone will be able to answer.

Is statutory redundancy worked out on your last year of service pay or is it an average of the last three years service?

Last year normal weekly earnings (i.e. a bonus may not be included).

Is there any law or guidance on ex gratia payments?

Not really.

If you are offered 2 weeks salary on top of a statutory payment is that calculated in the same way as the statutory payment, i.e two weeks gross salary?

In general yes but they could do other calculations on it such as excluding bonuses etc.

Would really appreciate any help at all. My husband has been offered voluntary redundancy and has been told that he will get 2 weeks statutory plus 2 weeks per year ex gratia. However having calculated the payment based on 4 weeks pay for 11 and a half years service it falls short by at least €5000.

Keep in mind you'll might be taxed on part of it as well; but at 11.5 years he should get 47 (11.5x4 +1) weeks of pay if I'm not mistaken; that is equalent of 90.38% of yearly pay.

Only other things coming to mind would be any longer time away etc. but easiest would be simply to ask the manager how/why they calculated it to what they got compared to your calculations.

bridan90

Thanks Nody

My husband has only just enquired about the voluntary redundancy. He was told by his boss over the phone that a letter was on its way to him with details of the so called package. Basically what they are saying is that if he and 3 other collegues do not take this then there will be compulsory redundancies.

So can anyone tell us do they have a right to a negotiated settlement and not just some package made up by the HR dept? Also do they have the right to know the criteria that will be used by the company before compulsory redundancy comes into force?

There has also been mention of flexible working hours which means signing a new contract of employment on a casual basis involving being on call with no guarantee of work from one week till the next. My husband has a company car at the moment. If he were to sign a new contract he would lose the car and be expected to provide his own transport. Can they force this through if the employees refuse? If anyone was foolish enough to take this deal and sign a new contract would they still be entitled to their redundancy settlement?


The organisation that my husband works for does not allow membership of an external union. They have a CPR which is a kind of internal union and they have one employee rep who covers the whole of Ireland. This particular person has proved to be ineffectual when it comes to standing up for his collegues rights. Is there any other form of redress that my husband and his collegues can pursue to ensure their legal rights?

Nody

bridan90 wrote: »

My husband has only just enquired about the voluntary redundancy. He was told by his boss over the phone that a letter was on its way to him with details of the so called package. Basically what they are saying is that if he and 3 other collegues do not take this then there will be compulsory redundancies.

So can anyone tell us do they have a right to a negotiated settlement and not just some package made up by the HR dept? Also do they have the right to know the criteria that will be used by the company before compulsory redundancy comes into force?

You can always negotiate but considering that it is fair as it is I doubt there is that much wiggle room available.

Compusory redundancies are just that; they declare a specific area/department redundant/having on X positions left and that is it. Of course this can easily be targeted (while remaining legal) by declaring everyone redundant and then hire people back with a new position name and slightly altered duties.

There has also been mention of flexible working hours which means signing a new contract of employment on a casual basis involving being on call with no guarantee of work from one week till the next. My husband has a company car at the moment. If he were to sign a new contract he would lose the car and be expected to provide his own transport. Can they force this through if the employees refuse? If anyone was foolish enough to take this deal and sign a new contract would they still be entitled to their redundancy settlement?

Yes they can force it through via redundancy (minimum offer only) if they change position name.

The offer of redundancy is not required to be carried over if they accept the new contract (i.e. in a year the company can make everyone redundant with minimum redundancy only).

The organisation that my husband works for does not allow membership of an external union. They have a CPR which is a kind of internal union and they have one employee rep who covers the whole of Ireland. This particular person has proved to be ineffectual when it comes to standing up for his collegues rights. Is there any other form of redress that my husband and his collegues can pursue to ensure their legal rights?

A company does not have to recognise a union at work but they can't stop anyone from joining any union. You're not going to get very far how ever considering that what they are doing to date is not illegal/dodgy (with available information and this is not a legal oppinion)and the fact they offer a fair/good redundancy package and the fact that you'd only be joining up to get help (not generally seen in good light).

If you want legal oppinion then I'd suggest meet with a solicitor to discuss it but so far I can't really see anything raising flags that could be legally challenged.