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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 54410
Experience:  Qualified Solicitor
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In the industry I work in we are governed by the COTA

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In the industry I work in we are governed by the COTA Agreement. We maybe facing redundancy so from a legal point of view I would like to know how section 31 is interpreted. As my understanding from the wording is that we would be entitled to 800 pounds for every paid week worked.
Section as below
In the event of a redundancy situation arising, those employees selected for redundancy and who have at least two years service will be entitled to a payment based upon statutory provisions but enhanced to a payment of £800 for each week’s pay. Employees with more than six months but less than two year’s service will be paid job severance at the rate of £4 for each full week of service. Each employer will deal with the management of the redundancy, including selection criteria, in accordance with their own policies and procedures.
They are stating that is only 800 pounds per year worked.
Which one is correct from the section 31? All directors have signed this agreement from the different companies involved
Hello, my name is ***** ***** it is my pleasure to assist you with your question today. I am afraid you are mistaken as to the interpretation of this clause. As far as the statutory entitlement to redundancy is concerned, an employee gets a week's pay for every full year they have worked with that employer at the time of redundancy. This weekly pay is currently capped at £464. So to use an example: an employee with 5 years' service is made redundant. Their normal pay is £700 per week, however under the statutory scheme they are only entitled to 5 weeks x £464 per week, giving them a total of £2320.
In your case the employer has offered you an enhanced entitlement where they have increased the maximum statutory limit of £464 to £800. This means that you would till get the number of week's pay corresponding to your length of service (e.g. 6 weeks' notice for 6 years' service), but those weeks will be paid at £800 each, so with 6 years' service you would only get 6 x £800, which is £4200. If the employer did not have this enhanced scheme in place you would only get a maximum of 6 x £464, which is £2784.
I hope this has answered your query. Please take a second to leave a positive rating, or if you need me to clarify anything before you go - please get back to me and I will assist further as best as I can. Thank you
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