YOUR RIGHTS
IF you have worked for your employer for two years or more, you have the right to statutory redundancy pay.
This is a legal minimum and your employer can’t pay you less. Some firms are more generous and may offer their own better terms.
The statutory redundancy you get is based on how long you’ve been in your job and your current salary – capped at earnings of £538 per week.
There is also an overall maximum statutory amount you can get, capped at £16,140 in this tax year.
Only complete years of service count, and it has to be continuous. Age plays a part too.
Under 22 you get half a week’s pay for each year.
Between 22 and 40 you get a week’s pay for each year
Over 41 you get a week and a half’s pay for each year.
These are minimums, and some firms will offer more generous terms. If you are going to get more than basic redundancy, the first £30,000 is tax free.
When it comes to notice periods, your employer must give you a statutory minimum of one week’s notice of redundancy for up to two years’ service and one week’s notice for each year you’ve worked after that – up to a maximum of 12 weeks’ notice.
You may have a longer notice period in your contract so check that.
You may also be expected to work this period or you might be allowed to leave earlier. In this case you’ll get pay in lieu of the notice period too.
If you have any holiday owed, your employer must pay you for it or let you take your holiday before you leave. If you’ve worked there for less than two years, you are not entitled to receive a statutory redundancy payment.
Act swiftly: card and work out how much you need to – and can afford to – pay each month to get it cleared during the introductory term.
TSB offers 29 months; M&S Bank and Natwest 28 months; HSBC 25 months and MBNA 24 months.
Talk to lenders directly about any options you may have to switch to cheaper products, freeze interest or extend the term of a loan agreement to reduce the monthly repayments.
During these unprecedented times, these organisations are being more flexible and have been issued guidance from the Financial Conduct Authority to help find solutions to help those struggling to manage their finances. If you have unmanageable debt, get free, independent advice from one of the debt charities.
Contact your local Citizens Advice or visit citizensadvice.org.uk; call the National Debtline on 0808 808 4000; call Stepchange Debt Charity on 0800 138 1111 or stepchange.org.