Redundancy Determination

[Mike25]

I have worked for a company and completed 12 yrs service. 9 of those yrs was full time and the final 3 years was par-time. Can they calculate my full redundancy based on the part-time service as it is my present contracted hours at the time of the redundancy?
Ie 12 years redundancy based on parttime ignoring the fact I done 9 years at full time?
Surely this isn't right.

[sunny-dave]

I'M NOT A LEGAL EXPERT ... but ...

After 2 years of full-time work and 6 of half-time, my redundancy was based on the equivalent of 5 years of full-time pay - ie 2 + (6/2).

[sunny-dave]

So I reckon yours should be based on 9 + (3/2) which is the equivalent of 10 and a half years at full pay.

[ubasses]

According to the link below, it could be down to your employer, they are allowed to base redundancy pay on your current part time salary.
When I did redundancy interviews (many years ago now) they were based on the full number of years service.
https://www.xperthr.co.uk/faq/where-an-employee-has-recently-changed-from-full-time-to-part-time-hours-how-should-their-redundancy-payment-be-calculated/60812/

[THECORBYLOON]

Your employer must pay a minimum amount which will be based on your average earnings in the twelve week period ending on your date of redundancy.

That doesn't mean you'll not be paid more but you'll need to speak to your HR or payroll section if you've not been telt how it'll be calculated.

[Mike25]

Thanks for the link. I think that is shocking, therefore if someone worked 25 yrs and on the final year was moved onto a parttime contract ie 2 days a week, then the 25 yr redundancy package can be based on 2 days a week for the full 25yrs..... how is that legal! This could be a way for companies to get out of paying decent packages!

[THECORBYLOON]

If you had not been made redundant, would you not have carried on doing part-time hours?

[Mike25]

Asking for a friend but yes they would have, still don't think this should discount the full time years they completed for the company. By the way the company in question is huge, not a small time employer.

[THECORBYLOON]

The maximum number of years in employment taken into account is twenty and the maximum weekly earnings is £525 in Great Britain and £547 in Ulster.

Is it fair to have a limit on the years and earnings? Is it fair to have different rules in Ulster?

You may not agree but it's the law.

[bednobs]

when i was made redundant, my pay was partially based on the last 3 months earnings, but timesed by the amount of years service

[THECORBYLOON]

The statutory amount is 1.5 x average weekly earnings for each year of employment up to a maximum of twenty years. There is also a maximum amount applied to the average earnings.

That means the maximum is 30 x £525 (£15,750) in Great Britain and 30 x £547 (£16,410) in Ulster. 

[ubasses]

Not quite - half a week’s pay for each full year under 22
one week’s pay for each full year you 22 to 41
one and half week’s pay for each full year over 41 .

[THECORBYLOON]

Yup, quite correct, I was focusing on the maximum amount.