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redundancy money

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jasmin26 | 05:21 Sat 16th Jun 2012 | Personal Finance
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Hi i wonder if anyone can help me on this please. My friend has worked for the same company for about 6 years , they were taken over by a larger company 14 months ago. At that point they started paying him a retainer of £500 per month if they had no work for him and £150 per day if they had work. For the last 8 months he has worked 5 days a week.He was never given a contract by the new company. The company is now looking to make him redundant. What in the way of redundancy money would he be entitled too ? thanks.
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I am sure he might find the answer re statutory redundancy pay on the direct.gov website http://www.direct.gov.../Redundancy/DG_174330

The fact he has no written contract is not relevant IMO, the contract is implied as he's been working and the company have been paying him.

In addition, some companies may pay more redundancy than this, but the direct.gov site shows what the law requires as a minimum.
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Thanks Boxtops that is really helpful.
Another thing to bear in mind that the redundancy calculation the earnings element is based on lost future earnings. In your friend's case as the monthly pay varies I'm not sure whether they will base it just on the £500 a month retainer rather than on some sort of average of what he has earned in the past. It may also be complicated by the takeover-was he subject to a TUPE transfer?
Buildersmate is the expert in this area- hopefully he will see this.
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thanks Factor30 for you reply. I am not to sure of the circumstances of the takeover so cant really answer that until i speak to him again.

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