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Urgent - needs moderators' attention on Redundancy pay issue

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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Syed_n
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Posts: 20
Joined: Thu Sep 17, 2009 10:10 am

Urgent - needs moderators' attention on Redundancy pay issue

Post by Syed_n » Wed Oct 07, 2009 2:57 pm

My query relates to Redundancy pay.

One of my friend is on HSMP visa and he is going to apply for extention
under Tier 1 General. During his last 12 months jobs, one of his company
went into liquidation and it does not paid his one month's salary. So
through Liquidator, his salary of that month, notice pay, holiday pay
and redundancy pay was paid by THE INSOLVENCY SERVICES (a government deparment who deals with redundancies).

Can you please clarify the matter that does the above payment comes
under NO RECOURSE TO PUBLIC FUND category and if no then can he claim this amount in his last 12 months earnings.

Thanking you in advance,

mvent00
Diamond Member
Posts: 1003
Joined: Thu Apr 16, 2009 10:18 am

Re: Urgent - needs moderators' attention on Redundancy pay i

Post by mvent00 » Wed Oct 07, 2009 5:35 pm

DUPLICATE
Syed_n wrote:My query relates to Redundancy pay.

One of my friend is on HSMP visa and he is going to apply for extention
under Tier 1 General. During his last 12 months jobs, one of his company
went into liquidation and it does not paid his one month's salary. So
through Liquidator, his salary of that month, notice pay, holiday pay
and redundancy pay was paid by THE INSOLVENCY SERVICES (a government deparment who deals with redundancies).

Can you please clarify the matter that does the above payment comes
under NO RECOURSE TO PUBLIC FUND category YES, it does. http://www.ukba.homeoffice.gov.uk/sitec ... cfunds.pdf

and if no then can he claim this amount in his last 12 months earnings.

Thanking you in advance,

blue moon
Newly Registered
Posts: 8
Joined: Wed Sep 23, 2009 10:14 pm

Re: Urgent - needs moderators' attention on Redundancy pay i

Post by blue moon » Thu Oct 08, 2009 11:45 pm

mvent00 wrote:DUPLICATE
Syed_n wrote:My query relates to Redundancy pay.

One of my friend is on HSMP visa and he is going to apply for extention
under Tier 1 General. During his last 12 months jobs, one of his company
went into liquidation and it does not paid his one month's salary. So
through Liquidator, his salary of that month, notice pay, holiday pay
and redundancy pay was paid by THE INSOLVENCY SERVICES (a government deparment who deals with redundancies).

Can you please clarify the matter that does the above payment comes
under NO RECOURSE TO PUBLIC FUND category YES, it does. http://www.ukba.homeoffice.gov.uk/sitec ... cfunds.pdf

and if no then can he claim this amount in his last 12 months earnings.

Thanking you in advance,
Hi Mvent00,

Could you please explain your answer little more?

What do you mean by Duplicate?

You mean duplicate because he also claiming salary by showing unpaid payslip?


I am 99% sure the redunancy mimum statutory payment does not count as public fund. Because that is made after the deducation of 20 % basic tax and national insurance.

Only 1 % not sure because of your comment.

Could you please provide the evidence of your claim? The link you posted about the public funds does not mention Statutory minmum payment for unpaid wages and holiday Pay (which was the original question).

Thanks

mvent00
Diamond Member
Posts: 1003
Joined: Thu Apr 16, 2009 10:18 am

Re: Urgent - needs moderators' attention on Redundancy pay i

Post by mvent00 » Fri Oct 09, 2009 12:13 am

blue moon wrote:
mvent00 wrote:DUPLICATE
Syed_n wrote:My query relates to Redundancy pay.

One of my friend is on HSMP visa and he is going to apply for extention
under Tier 1 General. During his last 12 months jobs, one of his company
went into liquidation and it does not paid his one month's salary. So
through Liquidator, his salary of that month, notice pay, holiday pay
and redundancy pay was paid by THE INSOLVENCY SERVICES (a government deparment who deals with redundancies).

Can you please clarify the matter that does the above payment comes
under NO RECOURSE TO PUBLIC FUND category YES, it does. http://www.ukba.homeoffice.gov.uk/sitec ... cfunds.pdf

and if no then can he claim this amount in his last 12 months earnings.

Thanking you in advance,
Hi Mvent00,

Could you please explain your answer little more?

What do you mean by Duplicate?



You mean duplicate because he also claiming salary by showing unpaid payslip?

Duplicate means http://www.immigrationboards.com/viewto ... ht=#291660

I am 99% sure the redunancy mimum statutory payment does not count as public fund. Because that is made after the deducation of 20 % basic tax and national insurance.

Most of the public funds follow the same criteria you have just mentioned. Minimum redundancy payment is a social fund payment and hence it is a public fund. It can only be claimed while not being considered as a public fund, if your family member (partner or child) is an EEA national. If it is like this then it is okay. If you are in any doubt about whether you are able to claim a particular fund, you should contact the department or agency that issues it. If they say it is not a public fund then what else I can say? Please share the reason/evidence that makes you 99% sure about it, it would help me to correct my point of view.

Only 1 % not sure because of your comment.

Could you please provide the evidence of your claim? The link you posted about the public funds does not mention Statutory minmum payment for unpaid wages and holiday Pay (which was the original question).

1000 X 400 X 500 X 0 = 0 That is my opinion, which should be corrected, if it is wrong :o

Thanks

blue moon
Newly Registered
Posts: 8
Joined: Wed Sep 23, 2009 10:14 pm

Re: Urgent - needs moderators' attention on Redundancy pay i

Post by blue moon » Fri Oct 09, 2009 12:46 am

1000 X 400 X 500 X 0 = 0 That is my opinion, which should be corrected, if it is wrong :o

Thanks[/b][/quote][/quote]

Lol- Some ppl have a close mind - never mind

May be the correct term I wanted to use was Insolvancy Payment. Which Comes from Insolvancy Services (a govt department). When a company goes into Liquidation and managed by an Adminstrator then this department works with Administrator and pays unpaid salary, holiday pay and Notice pay. But they have a statutory maximum limit which is at the moment £330 per week.

So in the example if a company does not pay your one month salary . Say 4 weeks @ £500 p/w and total outstanding salary is £2000.

In a normal case the person should have received £2000 and earn his/her points on the salary. Right.

Now unfortunately his company runs into trouble and did not have money left to pay their employees (including the poor guy who is on HSMP and was looking for that money into his bank account to earn some points). That was not his fault they company could not survice the credit crunch. He demanded his money from the Adminstrator who refered him to the govt department and asked him to fill a claim form.

Govt department after taking 3 months and looking into the employer records accepted the poor guys claim but because of their statutory limit they could pay only maximum of £330 per week of unpaid salary.

They will pay £330X4= £1320 less 20% income tax and basic NI- Net amount £1020 instead of £2000 (actual salary).

Now, the question was will that poor HSMP holder can claim points on the payment received from this govt department or Public Fund?

Secondary question could be- How much gross income he can claim? Original Gross Salary of £2000 or £1320 reduced?

To be 99 % sure I dont need any reference or confirmation because common sense pervails- And Home Office will go to hell if they did not give that poor HSMP holder any point for his unpaid salary!!

So conclusion :

1/0= 10000000000000000000000000000000000000000000000000000..

mvent00
Diamond Member
Posts: 1003
Joined: Thu Apr 16, 2009 10:18 am

Re: Urgent - needs moderators' attention on Redundancy pay i

Post by mvent00 » Fri Oct 09, 2009 3:15 am

Syed_n wrote:My query relates to Redundancy pay.

One of my friend is on HSMP visa and he is going to apply for extention
under Tier 1 General. During his last 12 months jobs, one of his company
went into liquidation and it does not paid his one month's salary. So
through Liquidator, his salary of that month, notice pay, holiday pay
and redundancy pay was paid by THE INSOLVENCY SERVICES (a government deparment who deals with redundancies).

Can you please clarify the matter that does the above payment comes
under NO RECOURSE TO PUBLIC FUND category and if no then can he claim this amount in his last 12 months earnings.

Thanking you in advance,
I did not see this post before. The topic has already been discussed here. Common sense has a value, but rules mentioned in Guidance of Tier 1, including those for previous earnings, will prevail.

Quote from Guidance:
Earnings we will include in the assessment


121. Earnings may include, among other things:
• payment in lieu of notice (a payment made instead of requiring an employee to work the normal period of notice when leaving a job).

http://www.ukba.homeoffice.gov.uk/sitec ... 310309.pdf page 22 of 44. (This one is the most similar with your source of income).

Based on this, I think you cannot show these for previous earnings, however, if your compny have had issued these, it might be a different case. Any expert advice please??

blue moon
Newly Registered
Posts: 8
Joined: Wed Sep 23, 2009 10:14 pm

Post by blue moon » Fri Oct 09, 2009 9:07 pm

Hi Mvent00,

There is a different between the Redundancy Payment which is normally set-up in the contract of employment as a lumsum money if the employer make somebody redundant. It is normally set-up 2-6 month salary. But this is a future promise to pay. And the payment will come from the Employer's bank account.

But the second case is unpaid salary which the services have already been provided. The employer issued the payslip but then did not have money to pay. The Adminstrator was appointment by court to sell the assets of the employer. But in the mean time Insolvancy Services pay upto maximum of £330 per week for unpaid salary, Pay in Lieu of Notice and Holiday pay. Money comes from Insolvancy Services's bank account in this case.

I will apperciate if somebody can confirm my understanding. If somebody with personal experience please guide us.

Another example which I can think of at the moment is. Scapage Scheme announced by UK govt to buy a new car is a Public Money but then everybody is entitled?

Any comment?

blue moon
Newly Registered
Posts: 8
Joined: Wed Sep 23, 2009 10:14 pm

Post by blue moon » Mon Oct 12, 2009 10:14 pm

No comments ?

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