I got made redundant in December 08 and I had been with my company for a while, so I did get some redundancy money. The package was strictly statutory payment (what the government allow) and 3 months notice. I was always told that the OR could not touch your notice payment but they could go after your statutory redundancy money.
I have been asked by the OR to show where the redundancy money was paid into and bank statements are to be provided so the OR can see where the money went.
What I would like to know is, do I need to show how all the money was spent or just the statutory payment? I have decided to show how all of it was spent because we lived on the redundancy money for about 3 months. But I just wanted clarification as to how much if any of redundancy payment the OR could go after if any of it was left.
redundancy payments are not considered income and therefore cannot be included for the purpose of considering an IPA/IPO.
However, that same redundancy payment is considered an asset and therefore claimable in full as a lump sum. If some of the funds have been spent meeting your essential expenditure and you had no other means by which to do so there is no problem.
We had no choice but to live on the money as I had no other income coming in. So I used it to pay our living expenses. I still have no job and my hubby salary is the only thing we will have to live on now and that is going to be a real struggle.
Redundancy Payment and the OR
Posted - 06 April 2009 : 21:58:23
