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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50143
Experience:  Qualified Solicitor
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Im being made redundant after 25 years and im capped at 20

Customer Question

hi im being made redundant after 25 years and im capped at 20 years? is that legal ive been offered £11,100
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.
Expert:  Ben Jones replied 1 year ago.
Please can you briefly outline details of the redundancy package
Customer: replied 1 year ago.
I have been accepted for voluntary redundancy and will leave my job in September. By then I will have 25 years service but I have been capped at 20 years earning £470 per week. I have been offered £11,100. This does not seem right to me. I work for a city council
Expert:  Ben Jones replied 1 year ago.
OK, thank you for your response. I will review the relevant information and laws and will get back to you as soon as I can. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you
Expert:  Ben Jones replied 1 year ago.
Many thanks for your patience. Whilst I completely understand why you may feel the offer you have been given is unfair and too low, it is unfortunately correct. Unless your contract entitles you to enhanced redundancy or your employer decides to offer you enhanced redundancy now, you would only be entitled to the statutory minimum redundancy payment. This is calculated on a set formula which is set by legislation. Everyone who is made redundant and gets the statutory amount will have their redundancy pay calculated under the exact same formula so you are not alone. The way the formula works is that it uses three factors to calculate the final amount – length of service, age and weekly pay. However, length of service is capped at 20 years, weekly pay is capped at £479 a week and your age will determine whether the weekly pay is factored by 0.5, 1 or 1.5. So in effect there is a maximum amount that someone can get for redundancy, regardless of how long their service is or what their pay is. You are near the maximum limit but unfortunately your actual pay (if more than 479) and your length of service longer than 20 years will not be included in the calculations – that is the law, there is nothing the employer can do about it.I'm sorry if this is not necessarily the answer you were hoping for, however I do have a duty to be honest and explain the law as it actually stands. This does mean delivering bad news from time to time. I hope you understand and would be happy to provide any further clarification if needed. If you are still satisfied with the level of service you have received I would be grateful if you could please take a second to leave a positive rating by selecting 3, 4 or 5 starts at the top of the page. Thank you
Customer: replied 1 year ago.
Im not happy with this all you've told me is what my employers and Google say yet when I calculated my redundancy on the government calculator it came out at £11,750 so your saying my offer is right in law is rubbish now I feel cheated by you. I should get my money back
Expert:  Ben Jones replied 1 year ago.
ok your question was why are you being capped at 20 years and is this legal, which I have answered. Have I missed anything? Let me now so I can clarify your position, thanks