Negotiating a Settlement When Your Job Has Become Redundant
Job losses have occurred in all sectors of the economy in recent months due to the global recession which is taking its toll on companies of all sizes.
According to experts, the number of unemployed in Britain is expected to reach 2 million in the next year as more and more businesses are laying off employees and some are shutting their doors for good. Most of those who are still working are very worried about their jobs and their finances.
The fact is that a large percentage of people will not lose their jobs at all no matter how bad the recession becomes. It is important to look on the bright side and think positively. Looking at the downside all the time and living in fear will cause severe emotional problems, which could affect your performance at work and therefore your job. It is important though to know your rights so that you have a good idea of what to expect if your job should be made redundant.
Under the law you are entitled to a basic package from your employer, but you may be able to negotiate for a higher redundancy payment. This is especially true if you work in an occupation where you have the support of a union. The law states that if you have worked continuously as an employee for the same employer for a ten-year period, then you are entitled to severance when your job becomes redundant. There is an exception, however, in that if you have been classified as a worker and do not have a contract with the employer. In this case you are not entitled to receive any redundancy pay.
When an employer decided to downsize to save money by decreasing the number of people on staff, then the employer will pay the severance to which you are entitled. In the case of a company going bankrupt, then the state will step in to pay the redundancy pay. Casual workers, or those who have not been in continuous employ with this employer for two years, will not be eligible to receive this payment.
The amount of redundancy pay paid out varies from one employee to another. What you will receive depends on how old you are, how much money you made each week and the length of time you have been working in this job. For example, if you are under 22 years of age, you would be entitled to receive half your weekly pay for each full year of service. Those between the ages of 22 and 40 would receive one week’s pay for each year and those over the age of 40 would receive one and half week’s pay for each full year of service.
The government also steps in when you receive redundancy pay, just as it does for the wages you earn. You do not have to pay any tax on the first £30,000, but whatever amounts that are over that are subject to taxes. This also includes any bonuses you may receive. If you have a contract of employment, the company’s policy for redundancy payment may be spelled out in this contract so you know where you stand. Some employers do pay more than the minimum amount.
If you think that your job may be in jeopardy, it is wise to find out how much you can expect to receive in redundancy payment or if you are entitled to receive it. As part of a union, you have a representative to speak to the employer on your behalf who will handle the negotiation process. Without a union, you may have to deal with the employer on your own, which is why you do need to know the obligations the employer has under the law.
Tags: job settlement, percentage, good idea, employer, policy
