Discussion in 'Jobs (Discussion)' started by dhobidust, Jul 16, 2012.

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  1. Ok gents this may not be the right place but I need some advice.
    I will be made redundant in 3 weeks, I am ok with this but my current employer is going to pay me off over 23 weeks, rather than in a lump sum. I am going to CAB and ACAS about this but does anyone know if he should pay a lump sum or can he dribble it?
  2. Will each 23 week payment be individually taxed? Tell them you want it in a oner, if you get another job after you've been laid off, you'll be taxed twice. If you don't get a job, then that will affect your job-seekers or whatever freeloader hand outs the Gov gives you cos you'll still be getting paid by this guy.
    I don't actually know the answer but I'd want it in a oner. I've had a lot of coffee this morning sorry
  3. Not legal advice, but I hope this may help, pending the arrival of an expert in this field!

    When I last looked into this, I found nothing in principle to prevent an employer paying redundancy payments by instalment. You can take them to the employment tribunal for non-payment, but that takes time and the payments might be complete by the time a hearing takes place. Catch-22 is that unless there are very exceptional circumstances, there is a three month time limit in which to raise a grievance.

    Fair points from PG, but I believe that a redundancy payment of less than 30K should not be subject to PAYE/income tax or NIC, even if paid by instalments. Similarly, the instalments should not be treated as income for the purpose of means-tested benefits, but may have an effect on capital.

    HM Revenue & Customs: Redundancy – guidance for employers - includes links to info for employees.

    As far as I can see the short answer is yes, the employer can pay by "reasonable" regular instalments. But consulting CAB and ACAS as you intend would be sensible. Hope this helps.
  4. ok thanks for the advice gents
  5. Citizens Advice Beaureau may be worth it, but I would think you could take legal advice, if its money owed it may be worth calling up a debt collection agency and consulting with them as well as its their job to hustle (not that I like the cnuts in particular), just get some advice from them and than perhaps look at your options (court?).
  6. thanks king
  7. Complete employment tribunial forms and submit them. (It costs you nothing, only a little time).

    ACAS become involved quite quickly.

    The employer has to start responding to letters etc from the Employment Tribunial and ACAS which will cost him time and money.

    It will be more cost effective for him to pay you off at the start.

    If you start the action immediatley, it may prevent problems down the line if he fails to pay you all the installments.
  8. thanks DB