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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 70925
Experience:  Qualified Solicitor
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I have just received my redundancy package and it is worked

Customer Question

I have just received my redundancy package and it is worked out at £8.70 per hour which is under minimum wage is this legal
Submitted: 16 days ago.
Category: Law
Expert:  Ben Jones replied 16 days ago.

Hello, I’m Ben. It’s my pleasure to assist you today. I may also ask for some preliminary information to help me determine the legal position.

Expert:  Ben Jones replied 16 days ago.

Hi there. Can I just check, how long have you worked for your employer? and had you been furloughed at all?

Customer: replied 16 days ago.
OK
Customer: replied 16 days ago.
No thank you
Customer: replied 16 days ago.
I worked for over 27 years and was furloughed in april
Expert:  Ben Jones replied 16 days ago.

OK I understand and thank you for providing this information. Please do not worry and leave it with me for now; I will get back to you with my answer as soon as I can, which will be at some point today. The system will notify you when this happens. Please do not reply in the meantime as this may unnecessarily delay my response. Many thanks.

Expert:  Ben Jones replied 16 days ago.

Sorry can you also confirm what figures you received and how it was calculated please?

Customer: replied 16 days ago.
27.87 years annual pay 18096 total to be paid 8700
Expert:  Ben Jones replied 16 days ago.

And how did you work it out to be £8.70 per hour? Also I need your age please?

Customer: replied 16 days ago.
163;348 per week devided by 40 hours and my age is 50
Expert:  Ben Jones replied 16 days ago.

So you are contracted to do 40 hours each week, is that correct?

Customer: replied 16 days ago.
I have been paid this rate for the last 6 months
Expert:  Ben Jones replied 15 days ago.

Thank you. So the minimum wage at the moment is £8.72 and you appear to have been paid £8.70ph, meaning each week there is an 80p deficit. Is that what you are trying to claim for?

Customer: replied 15 days ago.
I was a supervisor and paid £8.70 before the min wage went up in April, so I haven't had a raise in line with it, so do they have to give me a raise in line with previous year, and can they legally pay my redundancy at a rate of £8.70 per hour
Expert:  Ben Jones replied 15 days ago.

Thank you. They do not have to give you a raise in line with previous wage, all they have to do is ensure you get paid the minimum wage at any point in time. So you could have been earning £8.70 before the new minimum wage came into force on 6 April, and then all they could have done is increased it to £8.72 and that would have been legal.

So in your case, there is a tiny underpayment of 2p per hour, which as mentioned equates to around 80p per week. Your redundancy should be based on your minimum wage rate too so that would also be a slight underpayment too if they did not sue the correct figures.

Overall, you are not looking at much in terms of what you can claim as it will be probably around £50 altogether. You can certainly ask the employee to make up the required difference and if they refuse, then you can make a claim in the Employment Tribunal if needed to recover what you are owed.

Before a claim can be made against the employer in the Employment Tribunal, the affected employee would be required to participate in a process known as ‘early conciliation’, which is administered through the Advisory Conciliation and Arbitration Service (ACAS).

The purpose of this process is to allow ACAS to mediate between the employee and their employer to agree on an out-of-court settlement in order to avoid the need for legal action in the Employment Tribunal. The employer does not have to engage in these discussions and the process is voluntary for them. If they refuse to participate, or the conciliation is unsuccessful, the employee will be issued with a certificate by ACAS allowing them to make a claim.

However, if a settlement is reached, the employee would officially agree not to proceed with the claim in return for the agreed financial settlement. Other terms can also be included as part of the settlement, such as an agreed reference.

In order to initiate the early conciliation procedure, ACAS must be contacted, either online by filling in the following form (https://tell.acas.org.uk/find-a-solution-to-your-employment-dispute), or by phone on 0300(###) ###-#### They will explain the process and what happens next and get the ball rolling on your behalf.

If the early conciliation process was not successful, ACAS have issued a certificate to confirm that and you still wanted to make a formal claim in the Employment Tribunal, the claim can be initiated via the following link:

https://www.employmenttribunals.service.gov.uk/apply

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

Customer: replied 15 days ago.
Thanks for your help
Expert:  Ben Jones replied 15 days ago.

You are most welcome. If you have any further questions about this then please do not hesitate to get back to me and I will be glad to help. All the best