furlough pay

[Daz1986]

Does anybody on here know whether this is before or after tax? So whether it’s taken from your actual monthly take home or from your pay before tax??

thanks in advance 

[gdadphil]

MARTIN LEWIS has got a good explanation on https://www.moneysavingexpert.com/

my understanding is that the 80% is on gross pay (before deductions) and is an  "allowance" claimed by the Employer and then processed through payroll in the normal  manner. so the net effect for you on net pay is a little more than 80% due to the sliding impact of tax code.

you can get an idea of your "new" net pay by filling in the slots on this site https://www.thesalarycalculator.co.uk/salary.php

you can get your tax code from your payslip

cheers

Gdadphil

 

[kevin55]

2 minutes ago, gdadphil said:

MARTIN LEWIS has got a good explanation on https://www.moneysavingexpert.com/

my understanding is that the 80% is on gross pay (before deductions) and is an  "allowance" claimed by the Employer and then processed through payroll in the normal  manner. so the net effect for you on net pay is a little more than 80% due to the sliding impact of tax code.

you can get an idea of your "new" net pay by filling in the slots on this site https://www.thesalarycalculator.co.uk/salary.php

you can get your tax code from your payslip

cheers

Gdadphil

 

You got there before I did and agree

 

 

[Daz1986]

Ideal, only reason for asking is I have been made redundant and rather than a small redundancy package the boss is going to give us the same as the furlough payments so trying to budged!

[Snoozer]

2 minutes ago, Daz1986 said:

Ideal, only reason for asking is I have been made redundant and rather than a small redundancy package the boss is going to give us the same as the furlough payments so trying to budged!

As a side note and you may know this, Redundancy pay is not Taxable so make sure you take that into account  when working out if your employer is getting off light.

[Daz1986]

7 minutes ago, Snoozer said:

As a side note and you may know this, Redundancy pay is not Taxable so make sure you take that into account  when working out if your employer is getting off light.

Cracking mate! I didn’t know this so thanks for the info

[gdadphil]

Hi there

If you are on payroll you are not redundant! 

I presume your boss is keeping you on the payroll to do make this payment (otherwise how else can he claim it from HMRC?)

SO if you are on payroll for the duration of the 80% payment (3 months??++) then when it is over whats happening with your redundancy payment? 

There could be a case that you are still entitled to it. 

when you are made redundant you are entitled to your pro-rata leave to the date of termination. eg if you get 20 days a year and your leave year is Jan to Dec and your employment ends 30 June you would get 10 days. 20/12x6. (paid as a cash sum though payroll or leave date extended)

however the govt have just changed the rules on carry over of leave from 1 leave year to the next https://www.farrer.co.uk/news-and-insights/blogs/coronavirus-and-annual-leave-holiday-entitlement-can-now-be-carried-over-for-two-years/

so if you finally leave after the start of a new leave year you can carry any unexpired leave to the next leave year

atb 

Gdadphil

   

[Snoozer]

Redundancy pay

You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.

You’ll get:

• half a week’s pay for each full year you were under 22
• one week’s pay for each full year you were 22 or older, but under 41
• one and half week’s pay for each full year you were 41 or older

Length of service is capped at 20 years.

If you were made redundant on or after 6 April 2019, your weekly pay is capped at £525 and the maximum statutory redundancy pay you can get is £15,750. If you were made redundant before 6 April 2019, these amounts will be lower.

 

Redundancy pay (including any severance pay) under £30,000 is not taxable.

 

https://www.gov.uk/redundancy-your-rights/redundancy-pay

[gdadphil]

you need to find out (by chatting to previously redundant colleagues??) what system your employer uses to calculate redundancy pay 

this is the statutory table https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/32555/dg_177260.pdf

 

But if your employer has been more generous in the past he may have established a "precedent" and has to stick with the more generous method previously used.

were you given formal notice of your redundancy (ie in writing?) with the reason for the termination? 

the rules on these matters are strict and have not been softened due to COVID19. 

you must also be given proper notice of your termination date. a minimum of 1 week per whole year of employment at date of termination.

most people are on 4 weeks (or a month) notice as per your contract of employment. but if you have got more than 4 years employment you get an extra week a year up to the max of 12 weeks for 12 years employment.

cheers

Gdadphil

[AVB]

6 minutes ago, gdadphil said:

you need to find out (by chatting to previously redundant colleagues??) what system your employer uses to calculate redundancy pay 

this is the statutory table https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/32555/dg_177260.pdf

 

But if your employer has been more generous in the past he may have established a "precedent" and has to stick with the more generous method previously used.

were you given formal notice of your redundancy (ie in writing?) with the reason for the termination? 

the rules on these matters are strict and have not been softened due to COVID19. 

you must also be given proper notice of your termination date. a minimum of 1 week per whole year of employment at date of termination.

most people are on 4 weeks (or a month) notice as per your contract of employment. but if you have got more than 4 years employment you get an extra week a year up to the max of 12 weeks for 12 years employment.

cheers

Gdadphil

A lot of companies, especially in my line of business, have a standard redundancy ‘calculation’ that they publish to staff I.e four weeks pay for every full year of service but then depending on what you can negotiate pay more as an ex-gratia  payment. You also have to sign a non-disclosure agreement agreeing not to disclose the terms to anybody else. 

[Daz1986]

Sadly only been there 4 years so I think what he is doing will see a better financial income ?

[gdadphil]

It would appear that you would be better off if he keeps you on for the duration of the 80% covid allowance (the govt are paying him this so no cost to him .

It does appear he is trying to do you a favour, however you will still be redundant and at the end of the day you will be entitled to the redundancy payment and your prorated leave to the end date. In fairness you probably couldn't ask for notice period as well.

BTW I would suggest you read the martin lewis site as tbh I don't know  if you might be eligible for any other payments from Govt via benefits system

atvb

Gdadphil

[Daz1986]

49 minutes ago, gdadphil said:

It would appear that you would be better off if he keeps you on for the duration of the 80% covid allowance (the govt are paying him this so no cost to him .

It does appear he is trying to do you a favour, however you will still be redundant and at the end of the day you will be entitled to the redundancy payment and your prorated leave to the end date. In fairness you probably couldn't ask for notice period as well.

BTW I would suggest you read the martin lewis site as tbh I don't know  if you might be eligible for any other payments from Govt via benefits system

atvb

Gdadphil

I am

in a fairly fortunate position in regards to redundancy as been taken on by another local farm that is clearly still flat out so just want the best outcome all around really guys, thank you for all these comments 

[gdadphil]

no worries ATB