Martin Brewer and Esther Smith advise on whether redundancy pay should include a 'set bonus' and 'travel allowance'.
The question: Should redundancy payment include bonus?
My friend works for a building company and has just been made redundant. He has been offered redundancy pay based on his basic weekly wage. For the past three years he has received a set weekly bonus and a travel allowance. Is there any provision for these amounts to be included in the calculation?
Legal advice:
Martin Brewer, partner, Mills & Reeve
The answer to this is much more complex than it ought to be. The answer depends on what you mean by 'set weekly bonus' since that determines whether the employee is a variable rate worker or not and, depending on the answer to that the calculation of a week's pay differs. If the bonus is always the same figure then in simple terms it should form part of the calculation. If the bonus varies the calculation is more complex and if the figures warrant it specific advice should be sought.
