Recent job articles
October job losses hit a 14 year high- Where is the bailout money really going? CEO's pockets
- Wall Street expects more than 200,000 layoffs
- Circuit City is closing 150 stores in the United States
- Redundancy Entitlements
- Yahoo is set to cut 3,500 jobs by the end of the year
- Tesla Motors gets a new CEO, layoffs are coming
- Most American corporations don't pay income taxes
- PepsiCo is cutting 3,300 jobs around the world
- Jones Soda is laying off 40 percent of their workers
- UBS Bank is cutting over 2,000 jobs
- Kraft Foods is cutting 400 jobs in North America
- eBay is cutting jobs during hard economic times
- Obama calls for small-business rescue plan
- Thousands of jobs are being lost in the United Kingdom
Redundancy Entitlements
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In the event of redundancy, as an employee, there are laws in place to offer some income protection for you.Firstly, your employer is legally obliged to pay all the wages you are owed and reimburse you for any holiday entitlement you have earned but not yet taken.
All employees are again supposed to receive a period of notice ' details of which would have been included in your original terms of employment contract.
If however, circumstances are such that you do not receive the period of notice you are entitled to, you are again entitled to pay in lieu.
Your rights to redundancy payments
Entitlements changed in October 2006 and anyone in a job without a break in service for at least two years is entitled to up to 30,000 as a statutory redundancy payment tax free.
Your entitlement will be based on your normal gross pay - up to a maximum of 330 a week plus an allowance for your age and length of service.
For those aged 22-40 the entitlement is a full week's pay for each complete year of service.
Anyone over 40 years old receives an enhanced redundancy payout equating to one and a half weeks pay for each year of service.
These are the statutory amounts and there is nothing stopping your employer offering more so seize the opportunity to negotiate if the opportunity arises.
Remember though, payouts over 30,000 are taxable.
Most will acknowledge that Income Protection, or Accident Sickness and Unemployment Insurance will go some way to help relieve any financial pressure that may accompany redundancy.
If however, you anticipate problems keeping up with your mortgage or other debts, please don't wait for things to get out of hand. Contact your lenders immediately to discuss your options and agree a way forward.
Related Story: Redundancy Entitlements