Hello ds1990 and welcome to the forum.

Is this a sum of money you'll receive in return for your employment ending?

Are you entitled to any statutory redundancy pay?

It is termed as an "ex gratia" payment for leaving the company. I would be entitled to statutory redundancy money as I have been there a few years I would imagine.

So far it is only at the offer stage. I have not made a decision either way as it may be the case that most of money goes to my TD so there would be no incentive to accept it as things stand.

Hi ds1990.

I'm afraid that I suspect this is exactly how it would work.

You'd normally be allowed to keep the statutory element to help tide you over while you find new work.

Extra money - whether offered voluntarily by your employer, negotiated, or thanks to beneficial contract terms - is highly likely to be collected in to help repay your creditors.

If you want to know exactly where you stand, run this by your trustee. They should be able to give you a definitive view upon which you can base your decision.

I suspected that would be the case TDA, which I guess is fair enough under the circumstances.

What would happen for any months I was out of work? Would my current payment stop until I was back in work?

Hi ds1990.

Trust deed payments should be based upon affordability, so if you have no income for a period your payments might well be suspended.

It's quite possible, especially if you've volunteered to lose your job, that any missed payments will need to be made up by way of extending your trust deed.

I wouldn't say I have volunteered to lose my job! The deal was offered to me, not instigated by me. I have to consider the implications of the workplace environment if I should refuse the deal. It may be the best scenario that I take it, but not the choice I would prefer to make.

Hi,

By "volunteered" I simply tried to mean that your redundancy wasn't necessarily compulsory.

Of course. I was highlighting that since this offer came out of the blue that it may impracticable for me to return which would negate any voluntary aspect of it.

It might be important to your trustee ds1990.

In some circumstances certain trustees might choose not to extend a trust deed if they felt the reason for temporary non-payment was outside of the control of their client (for example compulsory redundancy).

I wouldn't do anything until you've talked through your choices with your trustee - it might result in a better outcome for you if they agreed you had no option other than to leave. Please note though, different trustees will see this in different ways.

Hi ds1990.

Is your employer initiating any redundancies?

Or is this a settlement agreement with you, which is considered by mutual agreement (your lawyer has to review and advise on)to end the relationship. Such payments normally include notice periods, outstanding holidays, plus additional ex gratia payment. It is rounded up into a Settlement Agreement which ends the employment relationship.

If you do not accept it, what are your alternatives?

My options are accept the offer or decline it and return to work.

There has been no mention of any redundancies before this though there is a note in my letter offering me my deal that consultations may begin if I turn it down.

Hi ds1990.

At the risk of repeating myself, I think that it would be best to discuss this with your trustee so that you know where you stand whichever direction this takes.