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Topic starter
02/09/2024 10:09 am
Hi all,
I am being made redundant in the last day of October this year, I will receive one weeks pay for every year I have been employed (10 years) I will get this and my final pay on the 15th of November.
What I want to know is will my trustee take any of this money? Also what happens if I get a new job and I have my redundancy payment coming? Will they then take my redundancy package?
This situation has me very 😥 as my trust deed ends in May 2025
Many thanks
DC
02/09/2024 8:30 pm
Hi DC,
Sorry to hear about your redundancy.
There are quite a few posts worth reading on the forum already around redundancy and the treatment of payments within a Trust Deed. The general opinion is that early engagement with your Trustee is key. Your redundancy can legitimately be used to bridge any gap in employment you have. Your only obligation is to pay what you can reasonably afford. So if your income reduces because you're relying on your redundancy, then your monthly contributions should reduce too. It might be a temporary reduction in payment value, or an extension to your trust deed term, for example.
If you were to find a job straight away, then yes, it is unfortunately likely that your Trustee would require the remainder of the redundancy to be paid into your Trust Deed.
