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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
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Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Hi, I am 53 years old and have worked as a Caretaker/Handyman

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Hi, I am 53 years old and have worked as a Caretaker/Handyman for a Children's Centre for the last 7 years. 18 months ago we were TUPE across to another company. My new contract, as of 1/4/13, included a £3334 a year pay cut. If I agreed to the pay cut they would pay me a lump sum of £6668 to cover the loss of earnings for the next 2 years. I agreed and signed the new contract.

Last month I was told I'm to be made redundant. Will my redundancy pay be effected by the amount still outstanding on the lump sum? Thanks.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. can you tell me the reasons for the redundancy please


Hello Ben, thank you for your help. Here is the reason given in the Consultation paper 23/4/14


"The reduction of properties has a direct impact on the amount of hours required to maintain and support these buildings. The economies of scale reach a point at which it is no longer economically viable to have salaried staff to run maintenance for buildings and where individual contracts, for example, a monthly window cleaning arrangement, becomes more cost effective". In my present Terms & Conditions (from 1/4/13) there is this statement. "Deductions from Salary: the company is entitled, at any time during or upon termination of your employment, to deduct from your salary (or any sums that may be payable to you) any monies owed to the company by you, including but not limited to, any deductions required by law, overpayment of salary or expenses, excess holiday, outstanding loans or advances, etc...

Ben Jones :

Hello, sorry I was offline this morning when you replied. Your redundancy pay should not be affected by the remaining sum on the pay cut agreement. The two are entirely separate – you were given the option of a pay cut with a compensatory package in return. If after that your employer found grounds to make you redundant, then the redundancy procedure is entirely separate to the change of your contractual terms that resulted in the pay cut and the compensatory sum. It does mean that your redundancy pay will be calculated based on your current salary so it would be the new, lower salary that would be used in the calculations rather than the old salary before the pay cut was introduced, but you would still get tat least the minimum statutory redundancy pay (or any enhanced redundancy which you may be entitled to under contract). To calculate the minimum you are entitled to by law you can go here:


Hope this clarifies your position?


It does, thank you.

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