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Should I get pay increase if I am being made redundant?
I’ve accepted redundancy and I’m due to leave the company as part of this. No one else in the firm is being made redundant. Whilst I was away on holiday last week, all other staff received notification of a 1.5% pay increase. No reason has been given for why I’ve not been included. I wouldn’t have even been made aware of it except a friend told me. My pay-out has been agreed as a standard package. Is there anything I can do about this as seems a little unfair given I have worked at the company over 12 years and I seem to be the only one going.
I understand that your position is being made redundant and that your employment will be terminating due to redundancy. Although you have not detailed this in your query, I assume that you are currently working your notice period. You state that whilst you were away on holiday last week, all other staff received notification of a 1.5% pay increase. You queried whether there is anything you can do about this as you say it seems unfair.
Whether or not you should be entitled to a pay rise depends on the terms of your contract of employment relating to pay rises. I would advise you to check your contract of employment carefully. Pay rises may be discretionary and/or dependent on certain criteria. There may also be a term in your contract stating that no pay rises will be awarded to employees working their notice period. Furthermore, you would need to investigate whether the pay rise takes effect after the end of your employment. I would advise you to meet with your employer to discuss your concerns here and to explore these issues. Failure to award you a pay rise that you are contractually entitled to could be a breach of contract/unlawful deduction from your wages. Therefore I would advise you to take specific legal advice if you still have concerns, having spoken to your employer.
In terms of your redundancy payment, this would not be affected by a pay increase (i.e. the redundancy payment would not be increased) if a pay increase is awarded following the relevant calculation date for your redundancy payment. Assuming that you have been given at least statutory minimum notice, the calculation date is the start date of this statutory minimum notice.
*Helen Frankland assisted with answering this question.
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Comments [5]
Gc says:
I’m in almost the exact same situation trying to find out if I’m entitled to it
Simon says:
Was made redundant on 31/5/2023. Due to finish on the 14/7/2023. Wage negotiation usually starts on the 1st of April but they are holding it back. So are we intitled to the back pay which the other staff will get from the 1st of April until the pay rise is sorted.
Mandy Garner says:
I take it that you are referring to a pay raise across the board, not discretionary rises. You would need to check the terms of your contract of employment relating to pay rises. There may, for instance, be a term in your contract stating that no pay rises will be awarded to employees working their notice period. Failure to award you a pay rise that you are contractually entitled to could be a breach of contract/unlawful deduction from your wages.
mark briers says:
I got made redundant last year, company is giving out a payrise Now. would I have some say in receiving that payrise?? my redundancy was paid up until november 2020.
Mandy Garner says:
Is it backdated?