The Redundancy Payments Directorate will deal with your RP1 form more rapidly if you send it to the correct Office.

Please select the area where the job was made redundant and then you can ring, email or write to them for the correct form

Click here for details of where to get the Form RP1

You can then send the completed form to:

Scotland, Cleveland, Cumbria, Durham, Merseyside, Northumberland, Teesside, Tyne and Wear, Yorkshire
Department of Business, Enterprise and Regulatory Reform
Redundancy Payments Office
Ladywell House
Ladywell Road
Edinburgh EH12 7UR
0131 316 5600
edinburgh.rpo@dti.gsi.gov.uk
Buckinghamshire, Essex, Hertfordshire, Kent, London, Suffolk, Surrey, Sussex
PO. Box 15
Exchange House
60 Exchange Road
Watford WD1 7SP
01923 210 700
watford.rpo@dti.gsi.gov.uk
Wales and all other counties in England
The Insolvency Service
Redundancy Payments Office
Cobalt Square
8th – 9th Floors
83 – 85 Hagley Road
Birmingham
B16 8QG

Telephone : 0121 456 4411
Fax : 0121 455 7178
birmingham.rpo@dti.gsi.gov.uk
HELPLINE
A helpline is available to answer any of your queries, for England, Scotland, or Wales.
The number to ring is 0845 145 0004

It is now typicl to Retire before you are 65. In 2011 nearly 80% of company pension scheme members retired early. Employers normally prefer to offer early retirement as an alternative to redundancy. This will probably be a lifestyle choice to be carefully considered with their partner. Do your research and seek professional advice.

Early retirement is probably more difficult than in the recent past as Pension funds have lost their tax benefits and now grow more slowly than in the past.  This is partly

• as a result of all the early retirement pensions they have had to pay!
• Annuities (which provide the retirement income for most pensioners) are paying lower rates.
• Interest rates are low so investments do not provide much extra income.

You will receive less income for a longer retirement period – perhaps 30 years or more!

How much money are you going to need in retirement?

You will have to see how your money is currently being spent and then adjust the figures for when you retire. This will produce a minimum income requirement – known as a  cash flow plan.

Here are some of the pitfalls that people fall in to:

• Too many people guess.
• Too many people underestimate.

If you don’t plan properly you could regret any mistakes for a long time!

Try the following methods:

Whatever the method there are four main types of expenditure to consider:

• Ongoing: The essentials that will still be necessary in retirement eg food, drink, clothes
• Reducing: Spending you will no longer have when you’re retired eg work-related expenses, any children leave home
• Increasing: The higher retirement costs eg fuel bills (spending more time at home), health insurance, leisure activities and home help or care in later life
• One-off: Foreseeable major expenditure eg paying off the mortgage, major extensions, buying your dream car

Do you know what your income will be?

Do you know how much income can be provided by your assets and investments? When considering this make sure you include all your assets including your property. Divide them into those you can draw upon on early retirement and those to be used for other purposes.

What you should consider:

Unfortunately, age discrimination is regrettably very much a reality of modern life. You could find that changing your job late in life might be very difficult. The majority of jobs open are going to be part time and low income.  So be realistic.

For further information visit: http://www.redundancyhelp.co.uk

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We have broken the information down in to sections for quick access. Please feel free to contact us should you require any further information by clicking on the form below or contacting us on 01903 920 666.

• Redundancy
• Financial
• Emotional
• Future
• Media
• What People Say About Us
• Redundancy Resource

Redundancy

• What is redundancy? – Redundancy occurs when an employer needs to reduce their workforce or because the place of work is closing down. It may also be because there is no longer any need for certain skills.
• Redundancy Pay – Redundancy payment will be received by the employee if they have at least 2 years continuous service with a contract of employment and they have not been dismissed – i.e. not resigned
• Legal Advice – If the terms of the redundancy are incorrect it is advisable to seek professional advice. Whether this is through a union representative or through a Solicitor, many Solicitors offer a free initial consultation.

Financial

• Assessment – You may need to assess your financial situation. This means calculating monthly outgoings against available funds. Do not ignore your financial position as this can exacerbate your circumstances.
• Action - If you find that you have a financial shortfall then you may need to seek advice. Speak to your mortgage company/creditors if you feel that you have difficulty meeting the payments. You can in some situations request a holiday period or temporary reduction in monthly payments. Do not try and arrange further credit.
• Financial Help – Mortgage and credit card companies would much rather discuss your situation in advance before you find yourself defaulting on payments. However, if you do need help, you can visit the Citizen’s Advice Bureau who offer a free confidential advice service.

Emotional

• Coping Mechanisms – Redundancy can make you feel that it is you who is personally rejected, this is not the case, but you may feel a confusion of emotions such as anger, sadness and hopelessness. These emotions are to be expected and are a natural process of regaining control.
• Counselling – There are many organisations available to help including the Samaritans and private companies who will guide you through the process of looking at the opportunities available to you.
• Family – Your family may initially be shaken by your redundancy. However, they can be an excellent source of support with previously unexplored avenues of networking for employment possibilities.
• Positive Side - Redundancy may not always be a negative experience, many use this time to re-evaluate their lives, to change career, retrain or start a new business venture

Future

• Job Hunting – This is a good opportunity to look at the options, which are available. The government often offers retraining and assistance for job seekers
• Interview techniques – Utilising your family you can practice your interview techniques to improve your confidence. There are also many coaching companies around who will help with your ongoing image development.
• Advice for writing CV’s – It is important to have a professional CV which will give you the opportunity to highlight your strengths and skills allowing your future employer to realise your potential through your work history. There are many resources you can utilise such as your local library or the Internet.

Media who have used Redundancy Help:

• Steve Wright’s Radio 2 Web Site of the day
• BBC Pure soap
• BBC Radio Derby
• BBC Radio Leeds
• Daily Mail on Sunday
• Channel 4 Television
• Prima Magazine
• PathFinder Magazine

What People Say About Us:

Mr Breakwell says “ A note to let you know that I will be starting a new job. Thank you for your help and support. Your website is excellent and a great confidence booster.

Redundancy Payments up to £30,000 in the course of working for any one company are normally free of tax but anything above £30,000 is taxed at your highest rate.

When you are made redundant, your employer should give you a P45 form. Give this to the benefits office or your next employer.

Help with the completion of your tax return with respect to lump sums and compensation payments:

HELP SHEET IR204 from Inland Revenue

If you have received a lump sum from your employer as a redundancy or compensation payment, this sheet will help you complete the employment pages of your tax return.

The first £30,000 of such a payment are usually exempt of tax.  Payments from two companies that are under one control, qualify for only the one exemption.  If payments span across a number of financial years, then any unused exemption may be carried over to the following year.

Income tax and Job Seekers:

HELP SHEET IR41 from Inland Revenue

Jobseeker’s  Allowance replaced Unemployment Benefit and Income Support for unemployed people in October 1996.  Unemployed people can claim this allowance for themselves and one adult dependent.  This allowance is a taxable income.
This leaflet answers the frequently asked questions.

If you are not working at the end of the year (April 5th) you will get a P60U form. This details the taxable benefits you have received and the tax that you have paid.

You can not claim a PAYE tax refund while you are claiming benefit. When you get a job, complete the form at the back of booklet ES40 (which gives details about signing on) and return it. The job centre will then give you a P45 for your new employer. If you have paid too much tax your new employer or your job centre will give you a refund.

Income tax and Relocation packages

HELP SHEET IR134 from Inland Revenue

If a job requires that you move to a new area, the first £8,000 of any help that you receive from your employer is exempt form tax, providing that certain conditions are met.  Expenses associated with buying and selling a home, moving and travelling are included.

When are redundancy payments NOT tax free?

When your employment contract specifies any redundancy pay or benefits. If this is the case any benefits are taxable.

An alternative to redundancy payments?

It may be possible to negotiate with your employer to made additional payments into your pension instead of making a redundancy payment. This will enhance your pension and help you avoid paying tax on those payments above £30,000!
On your return to employment

Don’t forget to hand over your P45! If you don’t you will end up on an emergency tax band and pay extra tax until it is sorted out.

Yes. You will be entitled to a redundancy pay if: – MUM

1.You are made redundant
2. If you have at least two years continuous service since 1 October 2006 there is no age restriction
3. You must be working as an employee under a contract of employment the contract may be written or verbal or a combination. By turning up to work for an employer there is an agreement of employment. Self-employed people and members of a partnership do not qualify.

Directors may be employees if they work under a contract of employment. They are unlikely to qualify if they have a controlling interest in the company.

To recieve redundancy pay you will also need to have been actually dismissed- i.e. not resigned. You may be invited to take voluntary redundancy, but this should still qualify as a dismissal by reason of redundancy.

What is the Redundancy Pay Structure?

Many employers unfortunately will only pay the minimum statutory redundancy pay, whilst others are more generous, for example, one month’s gross salary for every year worked. Generally, blue-chip companies and financial institutions are found to be more generous with their payments.

It is also the case, that even where an employer may only pay the minimum statutory redundancy pay, they will enhance the redundancy payment by making a goodwill lump sum without reference to a specific formula. This is sometimes the case where the dismissal based on a purported redundancy is on shaky grounds.

An employer may make an enhanced redundancy payment to take into account any shortcomings in the actual redundancy procedure and to ward of any potential tribunal claim. In turn the employee may be asked to sign a compromise agreement which will prevent them form bringing any subsequent unfair dismissal claim.

A specialist employment law solicitor is best placed to negotiate a severance package  after taking into account the strength of the claim.

If you are being paid only the statutory redundancy amount, this will be governed by:

1. How long you have been continuously employed by your employer
2. How your years of continuous service relate to a particular age band
3. Your weekly pay, up to a legal limit, revised as at 1st February 2012 to £430.00.

The amount of redundancy pay is calculated as:

1. Half a week’s pay for each full year of service where age during year less than 22

2. One week’s pay for each full year of service where age during year is 22 or above, but less than 41.

3. One and a half weeks’ pay for each full year of service where age during year is 41+

Redundancy Payments Offices:

A Government helpline is available to answer any of your queries, no matter where in England, Scotland or Wales your firm is based.

The number to ring is 0845 145 0004.

When will I receive my Redundancy pay?

If the company you were working for is paying the redundancy, then it should be paid on the last day that you work or as soon as is possible thereafter.

If there is to be any long delay with the redundancy pay, then that needs to be discussed and agreed with the employee prior to leaving. If the employee feels that they have to wait too long, then they can take the employer to an Employment Tribunal.

What does a ‘Weeks Pay’ Mean:

What does a week’s pay refer to?

This refers to the amount of pay you receive under the terms of your contract for employment. The terms of your contract can be spoken, written or implied or a combination of all three. You should have received at the minimum a written statement of your main employment particulars within two months of the start of your employment.

If you were working normal hours and your pay did not change from week to week, your week’s pay will be your basic weekly wage or salary. Any overtime earnings will not be included unless overtime was part of your normal weekly working routine.

Your pay is averaged out over a 12 week period before the “calculation date”. There is a maximum statutory redundancy pay limit which is reviewed each year in February. Employers can choose to pay more but at the minimum they need to pay at the rate the government has set.

I work shifts how do they work out my redundancy payment?

If your normal working hours varied from week to week because of shift work, and your earnings varied as a result, a similar calculation is done but the average hourly earnings are multiplied by the average weekly hours over the same 12 weeks.

If you had no fixed working hours, your week’s pay will be your average weekly earnings in the 12 weeks before the calculation date.

My hours were always different each week what will that mean to my payment?

If your earnings changed from one week to another because of piecework or productivity bonus arrangements, your week’s pay is worked out by multiplying the number of hours you normally worked in a week by your average hourly earnings over the 12 complete weeks of work before the calculation date. Only hours actually worked are taken into account. If the hours used in the calculation include hours outside normal working hours and paid at higher rates, the higher rate is ignored and the hours are worked out at the normal basic rate.

Do I need to have worked a certain amount of hours before I qualify for redundancy payment?

It doesn’t matter how many hours you work if you have worked continuously for the same employer for two years you are entitled to have a redundancy package.

If my employer asks me to do less hours during my notice period do I have to take a cut in wages?

No, you should be being paid the same weekly wage as you were receiving before the notice period was given.

What is my Redundancy “calculations” date?

This is the date that you were given notice of your redundancy. The minimum notice by law is usually one weeks notice per year of employment up to a maximum of twelve weeks.

The calculations date should fall into the following:

1. The minimum notice date
2. If you are given longer notice then the calculation will be made from the minimum date
3. The day the job ended with or without notice

The amount of a week’s pay to be taken into account is the amount you are entitled to under the terms of your contract of employment on the ‘calculation date’.

Your employer must give you a lump-sum payment if:

1. You are made redundant
2. You have at least two years continuous service
3. Directors may be employees if they work under a contract of employment

To qualify: You will receive payment only if you are an employee working under a contract of employment

You will not qualify :

1. if you are self-employed or member of a partnership
2. If you are a Merchant Seaman, former registered dock worker engaged in dock work or share fisherman
3. if you are a House of Lords or Commons staff, members of the Armed Forces
4. Government employees of an overseas territory
5. Crown servants or employees in public office
6. If you are an apprentice at the end of their training contract
7. Employees at the end of a fixed term contract
8. If you are a domestic servant who is a member of the employer’s immediate family

Do I need to make a claim for my Redundancy pay?

There is no need for you to make a claim unless your employer fails to pay you or disputes your entitlement. If there is a failure to pay, you must make a written request to your employer or to an employment tribunal within six months of the date the job ended.

Is Statutory Redundancy Pay taxable?

You should not have to pay tax on redundancy payment up to £30,000 as a result of HM Revenue and Customs (formerly Inland Revenue) exemptions.

What about my pension?

Pensions may not be offset against statutory redundancy pay made to employees dismissed on or after 1 October 2006.

You will find that Redundancy Protection Insurance is normally sold with loans, credit cards and mortgages and is often referred to as Income Protection or Payment Protection. This type of cover will provide you with payments when and if you lose your job. Payment Protection can often be expensive so it pays to hunt around and look for quotes from independent brokers.

What is Redundancy insurance? Well, Redundancy insurance? Cover can help to protect either your mortgage payments or your salary should you be made redundant. This means that there are effectively two types of Redundancy cover; either Mortgage Protection Insurance or Salary Protection Insurance. Whichever you decide, both will help you with your financial commitments through regular payments under the terms of your Redundancy cover.

If you are going to use your Redundancy insurance to cover your mortgage, then the maximum monthly benefit you are allowed to insure against is 65% of your normal income and you can choose to receive your payments after either 30 or 60 days of continuous unemployment. Note though that benefit will cease after you have received payments for 12 months.

If you are going to use your Income Protection insurance then the maximum monthly benefit you are entitled to insure is 50% of your normal income. Like the Redundancy Insurance cover you can decide if you want to receive the payments are 30 or 60 days of continuous unemployment but, unlike Redundancy Insurance, benefit payments will cease either after 12 or 24 monthly payments

Note that the DSS should not treat the money you are receiving from your insurance policy as income providing you are using your insurance money to pay for loan payments, credit card payments, mortgage payments or any other similar agreements.

Whatever you decide to do, you should be able to shop around and find the best deal for you as well as to be able to tailor the terms to suit your needs.

“FREE CONSULTATION- NO WIN NO FEE AVAILABLE”

We have a specialist employment law solicitor in London

Philip Landau is offering “Redundancy-Help users a free and speedy initial consultation” whether by e-mail or in person.

1. He will endeavour to respond to your emails within 2 working days.

2. No win no fee available.

3. All areas covered.

As an employer you have no legal responsibilities to those loyal employees who have been working for you for however many years. The responsibility is more of a moral one. If the remaining employees see you as attempting to help those who have unfortunately been made redundant they will not resent the action you have taken. The amount of support you are able to offer will of course be dependant of the size of your business.

Financial Help can include

• Comprehensive advice regarding the employees Redundancy Payment
  • Tax implications
  • Pension
  • Which state benefits will be available and when

• Information regarding PCDL – Professional and Career Development Loans http://www.direct.gov.uk/en/EducationAndLearning/AdultLearning/FinancialHelpForAdultLearners/CareerDevelopmentLoans/index.htm
  • These are available from the Directgov website the loan can be from between £300 – £10,000 – one you stop studying for your new career you begin to pay it back – you don’t pay any interest during your training period. http://www.direct.gov.uk/en/EducationAndLearning/AdultLearning/FinancialHelpForAdultLearners/CareerDevelopmentLoans/DG_10033237
  • The Directgov site also offers help with funding and finances you may be entitled to for help with child care costs, other grants and bursaries, and some courses are free.

http://www.direct.gov.uk/en/EducationAndLearning/AdultLearning/FinancialHelpForAdultLearners/DG_10033133 

The PDCL help line number is: – 0800 585 505

The NHS Credit Crunch Stress line is: – 0300123 2000

The Redundancy Payments Helpline is: – 0845 145 0004

Practical Help can include

Offer the help of an outplacement agency or alternatively help with interview techniques

Contact other local employers and put your redundant employees in communication with them

Offer time on company computers for employees to search for alternative work or assistance with retraining

Offer help with CV’s writing, templates and content

Offer to keep the redundant employees details to hand in case the business picks up- ask if they would want to return to work at your premises

Offer one to one counselling to your employees or seek assistance from charity organisations who could offer this service.

Keep notice boards current with any company vacancies

If you have apprentices who will be made redundant you can contact their provider so they are able to assist them.

Like wise if you employ a 16-17 year old  it would be good practice to contact your local Connexions direct http://www.connexions-direct.com/index.cfm?go=localServices  who will be able to off support and advice

Job centre Plus is under the umbrella of the Directgov website now and offers all sorts of advice on retraining, grants available and careers available. Below is a list detailing regions and contact details so you are able to access them immediately or alternatively you can Click Here http://jobcentreplus.gov.uk/jcp/Customers/parents_/Looking_for_a_job/index.html

Early Retirement

This may be an option open to you if you would like to take it in preference to redundancy. A proportion of companies are offering this as a way of reducing their work force on a more informal basis, however there are a lot of considerations to be taken into account before you go down this route.

If you have planned on taking early retirement that is an option you have clearly been preparing for. This will have meant taking all your finances in hand including maximizing your retirement contributions and making sure your investment portfolio is comprehensive. You will have reduced you debts to the bare minimum and this includes your mortgage, your house being a huge financial asset.  If this sounds like you then congratulations very few people plan so comprehensively, you will no doubt have a very secure retirement.

Unfortunately a probably larger proportion of the country is not as fortunate and need to take into consideration that by retiring early it means that less money will have been paid into the pension pot at least 10 years less and that in monetary terms can means a reduction of 25% of your pension. These offers are not only being made to employees in their 50’s staff in their 40’s are also being offered this option.

Considerations to be taken into account before taking early retirement

• Can I afford to do this
  • Who is still at home- partner, children, university commitments, weddings?
  • What is the minimum income requirement we need?
  • Are we going to remain in the same house or down size?
  • Do I need to supplement the income by getting another job?

You can click here to find out what you are entitled to with the state pension scheme http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/index.htm