Can I get both my redundancy pay and my compensation for losing my job at the same time?

The situation

I am writing to seek some clarity regarding my current situation here in England. I worked for a large manufacturing firm for over fifteen years, and unfortunately, my role was made redundant on the 14th of last month. My employer has offered me a redundancy package totalling £12,000 based on my length of service and my weekly pay cheque. However, the reason I was let go is actually tied to a specific legal dispute regarding the loss of my pension rights and certain emoluments that were promised in my original contract. I have already spoken to my union representative, and they suggested that I might be entitled to separate compensation for the loss of these benefits due to the way the company restructured. My main concern is whether I am allowed to keep the full £12,000 redundancy payment and also claim the extra compensation for my lost pension and earnings, or if the law requires the company to subtract the redundancy money from the compensation amount they owe me. I don't want to be accused of double-dipping if the two amounts are meant to be offset against each other. Can I receive both in full, or will one be reduced by the other?

Detailed Analysis

Whether you can receive both your £12,000 redundancy package and the extra compensation for your lost pension and earnings in full depends on the legal nature of your claim.

Under the Employment Rights Act 1996, there is a rule regarding 'set off,' which means one payment is used to reduce another. The law states that "the amount of the redundancy payment shall be set off against the compensation to which he would be entitled apart from this section"^[1]. This means if you are entitled to compensation under certain statutory provisions (laws passed by Parliament) for the loss of pension rights or earnings, the £12,000 you have already been offered might be deducted from that total amount^[1].

However, the law also allows for disputes regarding these payments to be handled by a tribunal. The law provides that "the question shall be referred to and determined by an employment tribunal" regarding questions of the right to such payments^[2].

In your specific case, if your claim for lost pension rights and promised emoluments (which is a legal term for your salary, bonuses, or other financial benefits) is based on a breach of your original employment contract rather than a specific statutory right, the 'set off' rule might not apply. If the compensation is purely contractual, you might be able to keep both. Because the provided sections do not clarify if your specific claim for 'emoluments' falls under a statutory provision or a private contract, it is not certain whether the company can legally subtract your £12,000 from your total claim.

Note that local or specific employment regulations may add further rules to how these payments are calculated.

Statutory Citations

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