Redundancy And Sick Leave

[geoff1057]

My brother in law has been employed by his company for 22 years, however after an accidentat work has not worked for the last 6 yrs. (but is still on their books,being paid by works insurance) Redundancies are mentioned , and he thinks that he may be made redundant soon . How many years service has he accrued is it the 22yrs or (22-6) 16 yrs .

[woofgang]

I think its 22 because he is still being paid by the company. I am a bit surprised that they haven't discussed medical severance with him as it has been going on for so long....I also think he needs proper advice, maybe his union or ACAS?

[geoff1057]

Thought it was 22yrs myself, I have told him to contact his union rep . He has only 18 months to retirement so redundancy might be the better option for him .

[ubasses]

Is it statutory or contractual redundancy pay? Statutory has a maximum of 20 years, a lot of Companies pay enhanced amounts but often follow the basic rules of statutory.

[geoff1057]

He’s not sure , but I would say probably statutory , looking at his situation he’s probably has 20 yrs+ service, and not sure how redundancy pay is calculated. I’ve told him to enquire with his employer how much redundancy pay he would be entitled to IF HE WAS made or took redundancy , could work out better for him taking redundancy .

[fiction-factory]

If he's being paid full pay whilst on long term sick until retirement age then unless he's within say 2-3 years of retirement I think he may be better continuing to draw sick pay rather than taking redundancy

[bednobs]

FF "he has 18 months till retirement"

[fiction-factory]

Okay thanks- didn't spot the extra info. He needs to factor in the retirement pension calculation though- retiring say 15 months early through redundancy could reduce his pension by around 5%. The tax free lump bit of redundancy pay is attractive though

[geoff1057]

Ok from what I gather he’s not on full pay , he’s claiming a percentage of his pay paid through his works insurance scheme , so his employers aren’t actually paying him . He’s still paying tax NI and pension

[fiction-factory]

Redundancy is for lost future earnings so it'll be based on his current lower pay at best. They may not even pay that- they might say the insurance should continue as the insurance company bears the cost not them so there is no future wage saving to the employer from making him redundant

[Maydup]

Its best to wait and see whether in fact redundancies are to be made and if so, what he is offered. In the meantime sit tight and make no enquiries anout it.

[Hopkirk]

If he is being paid by insurance, surely there is no saving to the company to the company to make him redundant.

I suspect they will pass him by when deciding who to make redundant.