Voluntary redundancy payments in addition to Gov. sums

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    Anon_Guy Anon_Guy is offline Junior Member
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    Default Voluntary redundancy payments in addition to Gov. sums

    Hi all,

    I am in a small company of 6 people, and two of us are being made redundant, with effect from Mid-December. We are being given govenment minimum payments (myself at the company 3.5 years, the other another colleague 2 years). Another member of staff was made redundant about 3 months ago (2.5 years service), but received "voluntary" payment from the company in addition to the govemnet amount (they were actually given 1 month for every year of service).

    My question is really is there are obligation / precedent regarding a company deciding on a whim to pay differing redundany amounts in addition to legislative sums, or is this scenario just bad luck on myself and my colleague?

    Thank you in advance for any light you can shed on this

    Regards,
    AG

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    Employee Advisor Employee Advisor is offline Expert Advisor
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    Dear AG

    I'm sorry to hear that your former colleague who opted for voluntary redundancy has received an enhanced payment from your Employer, where as you will be receiving statutory redundancy payment.

    Sometimes employees will have superior redundancy pay entitlements which are based on agreements reached with employers or different contracts of employment.

    Often in the case of voluntary redundancy, the redundancy package is often the same as what compulsory redundant employees. However (although you don't specify the time when this redundancy took place), there may have been more "money in the pot" and the company could afford to enhance redundancy.

    I'm afraid there is no custom and practice in law that would guarantee the right to this level of payment received by your colleague in a later round of redundancies.

    I hope I have helped and wish you well for the future.
    Clara Buckingham

    (Any advice I submit to Redundancy Forum is given in good faith without any further liability or obligation).




    Businesses, for professional HR advice Message me.

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