Another redundancy question

[nunheadmum]

Not sure if this is the right section for this but hoping some mummy/daddy HR professionals or lawyers can advise.

Our organisation has just handed out redundancy letters - not formal notices but letters saying that our posts are being made redundant and we can apply for newly created jobs. Accompanying them were 'estimated' statements of our redundancy payment entitlements. But they've got the calculations wrong and most of us (if not all) have been told we can get more than we're officially due.

Does anyone know where we now stand? Do they have to honour the amounts stated or can they say they were only indications etc? My tidy mind would rather say something and get the error noted and dealt with by whichever procedure is correct. But some colleagues would understandably welcome the extra cash and hence perhaps I should keep my mouth shut if saying something would lose them the extra. It's not massive amounts we're talking about - we only get statutory so it's not lots to start with.

Best option morally would be if there was a legal requirement now for them to honour the amounts stated. I suspect it won't be that simple?

Thanks!

[louiseneilan]

Are you sure they've got it wrong? Maybe they're rolling in your unused leave and other bits and pieces into the total. It's a complicated business but I would think employers normally go to the effort of getting it right, rather than overpay!

[nunheadmum]

I don't think they've rolled in anything else - for me the figures wouldn't make sense that way either and I don't think they can include anything else in redundancy pay as it isn't taxable whereas holiday pay etc is. I've dealt with redundancy stuff before so I do know a little about it.

They have used a consultant who was meant to have prepared this info - I think the consultant has just been lazy and not paid enough attention when copying over old documents.

If it is right, I'm happy to be told so. But I just wondered if, should it be wrong, are they bound by what they've told us at all. If not, others may lose out money if I do bring it to light and it is wrong - and I'd feel rotten doing that to others (unless they agreed to it).

[Layla's Mum]

If you need to know whether they are bound to pay you the amount stated in the letter, this will depend on what the letter says. Most likely if it is stated to be an 'estimate' then they will be entitled to amend it if it is calculated incorrectly. If you post the wording of the letter, I could confirm this.

[nunheadmum]

It does say estimated - which I thought would mean they could change it. But thought it worth checking. Thanks!

[Mrs TP]

Could it be they are offering you an enhanced redundancy package rather than statutory?

When I had my initial estimate, this time last year, I was given 2 breakdowns - statutory and an enhanced offer.

Note you are also supposed to have an initial consultation period before being definitely told your post is going. Your letter should state along the lines of 'you are now in a consultation phase, which will last from x date to x date and which is concerned with the fact that your current position is at risk of redundancy' and you should have at least one meeting to discuss this matter with your boss / the consultant / HR .

A worrying time but best of luck with it all. T

[nunheadmum]

No, they're doing it by the book with consultations etc. I'm on the management team so I've been involved since day 1.

From the errors made, it's clearly errors and not intentional. I think the external consultant has just been sloppy. I was just hoping there was some way we could be honest but still keep the extra money. Will just need to make them feel guilty and hope that works!!

Thanks anyway.