Question on Redundancy Entitlement

T

Tomorrow

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Hi there

I hope someone can help me with a query.

Employee made redundant 1 May 2011, on coming back from Maternity Leave.

We are trying to work out redundancy entitlement.

Put on 3 days a week in 1 January 2010, started maternity leave 1 Nov 2010.

Is redundancy based on the 3 day a week as it was over a year before redundancy? Or does maternity leave not come into it?

The Department have said its a 'grey area' so no help there so we are really looking to see if anyone has come up against this situation before?

Thanks for any help given
 
I believe that if the employee was put on a 3 day week as a temporary measure then the redundancy is based on the full time wages.If the employee requested to only work 3 days a week then redundancy would be based on this.
 
I was under the impression that one could not be made redundant while on maternity leave (or on coming back from same), no? Slim
 
It is our understanding the an employee cannot be made redundant when on maternity leave. However this employee was made redundant when she returned from maternity leave.

I think the issue is that if the employee was on a 3 day week for a year or more, the redundancy is based on the 3 day week. If the employee is on a 3 day week for less than a year, then the redundancy is based on the full time wage.

In this case the employee was on a 3 day week for more than a year but 6 months of that was maternity leave so where does this leave us? Does the 6 months count towards the year on a 3 day week or do you disregard the 6 months which means the employee would get the higher redundancy?
 
I think that you are wrong in your assertion that there is a simple cut off at exactly one year.It has everything to do with employee acceptance of the reduced hours as her new normal weeks work(unlikely?).Anyway,seeing as you get a large amount back from the government why not just pay up the full amount?
 
Thank you for your posts so far.

Vandriver - I happen to agree with you in what you say in relation to the one year cutoff, however my query is in relation to the maternity leave and I dont think its good advice to tell me to pay the larger amount.

Would it not be correct to pay the RIGHT amount?

The fact that the governments returns 60% to the employer should not come into it.
 
The right amount is what you feel your employee is worth.What you are trying to establish is the statutory minimum.I am basing my replies on my own research and how I was treated in a similar scenario(2 years on 3 day week).I was paid on my full 5 day wages without a quibble and if I had not been,I would have gone legal.
 
The right amount is not what the company feels the employee is worth, what would happen if the company felt the employee was worth nothing????

The right amount is the statutory minimum, if the company wishes to pay more, they can.

Again I agree with you on your opinion re the 1 year cutoff, however this issue is regarding maternity, as I have already stated!
 
Hi there

Yes, we did.

Maternity leave is set aside for the purposes of calculating redundancy entitlement.

She was entitled to redundancy based on her full weeks work before she was reduced to 3 days a week.
 
I've been in contact with NERA and they are telling me that the Maternity Leave is included. Who told you that the Maternity leave is set aside ?
 
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