redundancy payment

[oxymoron]

Hi If you have worked for a company i.e.bank for over 20 years and take maternity leave.Returning to work for 2 days a week and then are made redundant, would your redundancy payment reflect the 20 years service or only the part time.
Many thanks

[factor-fiction]

Redundancy is compensation for lost future earnings so if you are working 2 days a week now your redundancy payment will be based on your weekly hours and pay at the date of redundancy. Your past earnings are not relevant..
However the 20 years service should count in any redundancy payment scheme which reflects length of service.
So for example if your scheme gives 2 weeks pay for every year's service and you now earn �200 a week (based on 2 days a week) your redundancy pay after 20 years should be 20 x 2 x �200=�8000.
Statutory redundancy works in a similar way. Does this help?

[oxymoron]

Thanks factor30. I now know what the entitlement should be if it comes !!!!!

[factor-fiction]

My answer assumed you had continuous service and that your company has a redundancy package based on length of service and income.
The first �30,000 is tax free and exempt from NI too.

[oxymoron]

Thanks Factor30 all your information is appreciated.