Made redundant while out on long term sick and getting Permanent Health Insurance benefit provided by employer

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Tedward1

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I have been made redundant while on long term sick leave.

I have been receiving benefit under a Permanent Health Insurance Policy provided by the employer.

When the employer calculated my redundancy figure, it was done using my salary when I became ill 15 years ago.

Is the employer correct to use my salary from 15 years ago, and not a salary adjusted in some way for the 15 years that have passed since?
 
It's difficult to say without knowing both the terms of your PHI and also the terms of any redudancy policy that they have in place. An employer is under no obligation to pay more then statutory in the first instance but by making you redundant, does this also mean the PHI will cease.?
 
"I have been receiving benefit under a Permanent Health Insurance Policy provided by the employer"

I am not sure you can be made redundant. And it may not be in your best interest but definitely in your employers interest. You should check this carefully with the terms of your PHI Policy
 
gimp said:
"I have been receiving benefit under a Permanent Health Insurance Policy provided by the employer"

I am not sure you can be made redundant. And it may not be in your best interest but definitely in your employers interest. You should check this carefully with the terms of your PHI Policy
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Thank You for your answer. I am having the Policy checked at the moment. When the PHI company decided to accept your claim, and they were doing their calculations for the amount of benefit you would receive, do you know how much they deducted in respect of Social Welfare Benefit you might receive? If they deducted an amount, was it just ONCE the Social Welfare Payment, or TWICE the Social Welfare Payment.

Many Thanks for your kind help.
 
Remember people don't get made redundant, roles and positions do. If you are on PHI you would still be considered an employee of the company and if they were, for example, downsizing in Ireland, then they may be entitled to do this. Also PHI is not always permanent, it almost certainly will have a time limit on it, for example, retirement age.

In terms of the salary used for the calculations, unless you were covered for mandatory increases under a union agreement, steps in a scale or national pay awards, they are almost certainly under no obligation to inflation link or provide any increased salary for the purpose of those calculations.
 
thedaddyman said:
Remember people don't get made redundant, roles and positions do. If you are on PHI you would still be considered an employee of the company and if they were, for example, downsizing in Ireland, then they may be entitled to do this. Also PHI is not always permanent, it almost certainly will have a time limit on it, for example, retirement age.

In terms of the salary used for the calculations, unless you were covered for mandatory increases under a union agreement, steps in a scale or national pay awards, they are almost certainly under no obligation to inflation link or provide any increased salary for the purpose of those calculations.
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Thank You for taking the time to reply.

PHI - Retirement age is the time limit in my case. Cover I was given on becoming ill was 75% salary, less Government Illness Benefit multiplied by TWO. Benefit has increased annually by 5%.

Redundancy - Figure calculated on the basis of my salary from 15 years ago, which by now is significantly lower than current PHI benefit. I obviously missed out on the chance of having salary increases during those 15 years. Salary increases generally were performance rated, but over 15 years would have been significant.
 
Tedward1 said:
Thank You for taking the time to reply.

PHI - Retirement age is the time limit in my case. Cover I was given on becoming ill was 75% salary, less Government Illness Benefit multiplied by TWO. Benefit has increased annually by 5%.

Redundancy - Figure calculated on the basis of my salary from 15 years ago, which by now is significantly lower than current PHI benefit. I obviously missed out on the chance of having salary increases during those 15 years. Salary increases generally were performance rated, but over 15 years would have been significant.
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I would image your PHI benefit increased each year by the prevailing inflation rate (CPI) up to a max of 3% (policy dependent).. Salary was always frozen at the value of when you went onto the PHI benefit...another aspect to check is your salary being used for your pension entitlements...
 
Never heard of twice Social Welfare....Normally it is....You can have cover up to 75% of your total yearly earnings, less any benefits from the state or other income protection plans............If you don't receive twice social welfare they should not deduct it

Re % increase..............mine increased In line with Inflation subject to a minimum of 5%. So this year it increased by CPI of 8.2%.

Make sure you remain as an Employee
 
gimp said:
Never heard of twice Social Welfare....Normally it is....You can have cover up to 75% of your total yearly earnings, less any benefits from the state or other income protection plans............If you don't receive twice social welfare they should not deduct it

Re % increase..............mine increased In line with Inflation subject to a minimum of 5%. So this year it increased by CPI of 8.2%.

Make sure you remain as an Employee
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Many Thanks. Was it many years ago since you first received PHI Benefit? I must look out for the higher CPI this year also. Thanks for reminding me. :)
 
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