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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 48190
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I have been made redundant from my job and have been granted

Resolved Question:

I have been made redundant from my job and have been granted an overall settlement award figure of £50,777. I have elected to take £45,777 as compensation payment for termination of my employment and have the remaining £5,000 paid as a Pension contribution into my Pension.
I have now received my final payslip which shows the compensation payment of £45,777 and a salary sacrifice figure of -£5,000.
This seems incorrect to me as in effect this means that I am only receiving a Gross compensation figure of £40,777 instead of £45,777.
When I raised this with my ex-employer ( stating that I felt that the £5,000 figure should have also been included as a positive value under the payments column ofv the payslip ) they were adamant that everything is in order.
Are they correct or should I be due more than they have currently paid me?
Thank you for your help.
Kevin
Submitted: 2 years ago.
Category: Employment Law
Expert:  Ben Jones replied 2 years ago.
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. Have you actually received the money in question?
Customer: replied 2 years ago.

Hi,

I have received my final payslip as previously advised and the payment has been paid into my bank account.

The £5,000 Pension Contribution has not yet been paid into my Pension plan.

As far as I can see my ex-employer is underpaying me by £5,000 Gross.

Expert:  Ben Jones replied 2 years ago.
What is the amount you have received so far?
Customer: replied 2 years ago.

Hi,

The redundancy settlement was included in my final salary payslip and the entries shown as £30,000 ( Tax/NI free ) £15,777 ( Taxed no NI ) and a separate Pension Salary sacrifice deduction of -£5,000 i.e. £40,777 received..

While I would expect to see the Pension Salary Sacrifice deduction I would also expect to see the same figure shown as a positive figure in order to ensure that overall Gross settlement figure comes to £45,777 and not £40,777.

Thanks

Expert:  Ben Jones replied 2 years ago.
How was the initial figure agreed, was it written down and detailed anywhere?
Customer: replied 2 years ago.

Hi,

The Termination Settlement amount was agreed verbally and then included in as part of a clause entitled Termination Payments within a Settlement Agreement Contract ( checked and signed by a Solicitor acting for me and signed and returned by myself ).

The exact wording of the above clause reads as follows:

Termination Payments

(a) Subject to the Employee's compliance in full with his obligations as st out in this Agreement the Company will pay to the Employee on or before 27th September 2015

(b) £45,777 as compensation for the termination of his employment ( the "Compensation Payment" ) which includes any statutory redundancy payment to which he may be entitled; and

(c) £5,000 payable on or after 2 May*****of pension contribution into the Employee's pension ( "Pension Contribution" )

subject to the Company receiving by 1st September 2015 a signed copy of this Agreement and the Certificate at Schedule I signed by the Qualified Lawyer ( defined below ).

I hope this helps as it appears that my ex-employer have not actually adhered to the terms of this clause.

Best Regards

Expert:  Ben Jones replied 2 years ago.
If you have received £40,777 and you have not received a pension contribution then I agree that you have not actually received what you were contractually due. Looking at the agreement you should have received the £45k plus the £5k pension contribution. You could therefore pursue the employer if they do not resolve this. Obviously, before you consider any formal route you should try and approach the employer directly and give them the opportunity to resolve this. It may take a bit of time to sort it all out, but we are talking weeks rather than months or years obviously. Thinking about your next steps, whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps: 1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due.2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this. Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far. I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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