Redundancy Rules

[lankeela]

Friend of mine is just turned 63, been at the same place in catering for over 40 years. Can't get state pension till she is 66 (or may even be 67). There is now talk of going over to private contractors, so if they made her redundant is there a limit to how many years she would get payment for? She will get a works pension too.

[bobbinwales]

depends on whether firm has its own scheme of its statutory minimum.
will find link

[bobbinwales]

OR not of

[bobbinwales]

https://www.gov.uk/calculate-your-redundancy-pay
Firms own schemes are more generous

[237SJ]

Maximum for statutory redundancy is 20 years.

[lankeela]

It is a council owned boarding school.

[bobbinwales]

maybe they'll offer to TUPE transfer her over

[Maydup]

Statutory redundancy is capped at 20 years @ £643 x 1.5 because she’s over 41yrs.

That’s £19,290 tax free.

Plus 12 weeks notice.

[10ClarionSt]

Anyone over 40 years of age is entitled to one and a half weeks pay for every years' service, therefore your friend would/should receive a minimum of 30 weeks pay. There may be payment in leiu of notice but this may not apply if there is a change of employer, in which case your friend may have to apply for a job with the new contractor.

As previously mentioned, some employers (not many in my experience) may pay more than the state minimum via a tax free lump sum ex gratia payment, or in the absence of this may increase the weekly entitlement, eg, 2 weeks pay for every year of service. One of the best redundancy packages I heard of was a local well known company that paid 6 weeks wages for every year of service, but don't expect that. I'm only giving you an example how companies can soften the blow of job loss.

[bobbinwales]

Above answers for statury redundancy assume friend is earning the max figure of £643 or more per week...the actual pay and redundancy will be less if there earning less. ...eg if works only half days and gets minimum wage it will be alot less.
The money will be tax free if less than 30000 pounds.
Statury figures are abit higher in NI.
Good point about notice pay. It may take some time to consult and put things in place so this could stretch things out

[Maydup]

Yes, worth pointing out that my answer referred to the capped amount. So capped at 20 years and capped at £643 per week.

If your friend is offered a job with the new contractor they will have to match her current terms and conditions or better, and she would retain continuous employment. Which means that should she be made redundant in the future she still has her 40+years length of service.