Redundancy during maternity leave

[setesh]

Hi,

My employer has notified me that I will be made redundant and I am currently 1 month into maternity leave.
I claim maternity benefit and my employer pays me my gross pay for 6 months less 6 months maternity benefit in a lump sum on my return to work.
My return to work would in theory be the start of March 2012 which is when I would receive this 6 month back pay less MB.
My employer has offered to pay in full my back pay lump sum in 2011 instead but I would rather receive it in 2012 from a tax perspective.

Can my employer force me to accept this payment in 2011?
Also am I entitled to a date of cessation in March 2012
Please note, this lump sum is separate from my redundancy package.

Thanks for any advice.

 

[Sar]

My understanding from my own similar experience is that your employer cannot officially give you notice of redundancy while you are on maternity leave (but obviously thay can tell you unofficially that you will be made redundant on your return)So they will give you your official notice of redundancy on the day you are supposed to return to work in March 2012, so your cessation date will be in 2012.

You might be better off taking extended maternity leave as you will accrue holiday pay during that time, although you can't sign on until the maternity leave is over, so you'll have to weigh it up.

With regards to the lump sum - it sounds like this is made up of pay earned while on mat leave so I imagine you have to take at least the portion of it earned in 2011 in this tax year - I could be wrong though.

 

[JoeRoberts]

If there is a company policy and practice to pay the lump sum on your return then that holds for you too.
You need to keep the cessation date as March 2012 to max your redundancy.

 

[sean.c]

Hi,
My employer has offered to pay in full my back pay lump sum in 2011 instead but I would rather receive it in 2012 from a tax perspective.

I think waiting would be the wise thing to do;
a) would this back-pay-lump-sum-in-advance be treated as a salary advance, a gratuity, or as pay in lieu of notice?
b) the longer you stay, the better your redundancy
c) assuming you don't work for the rest of 2011, you might have a tax refund coming
d) assuming you don't work for most of 2012, you'll maximise your tax-free income.