Car Allowance In Redundancy Pay

I have a client who is asking me.

Car allowance in redundancy pay. Voluntary redundancy payment in lieu and car allowance. I am trying to find out if the car allowance should be taken into account when calculating my 9 wks notice period part of which will be paid in lieu. Most employees will opt to buy a used car with a cash allowance and it is generally larger and less fuel efficient cars that offer the best value second hand. So many employers found themselves paying for example a 5 000 cash payment to an employee in lieu of a car that would have only cost 4 000.

I m being made redundant and i receive a car allowance of 175 per month. However the influence of other industrial instruments and the exact manner in which the vehicle allowance has been arranged in the relevant employee s remuneration package can change this position. Car allowances are an example of a type of payment that could constitute either basic pay or an allowance depending on the terms of the agreement. Redundancy and company car.

The value of the car is added to the redundancy payment making 40 000. Not sure if relevant but my experience last year when i was under threat was the car allowance was given as a 3 month payment and increased to cover and tax. Wednesday 18th june 2014. 16 february 2009 at 7 19pm edited 30 november 1 at 1 00am in redundancy redundancy planning.

For example if the redundancy package was 30k based on salary should this also include a value of money based on the entitlement of having a company car for your whole working career with that company. I am 64 yrs old and have 9 complete years of service. Redundancy car allowance question. Therefore if they are giving you 8 weeks salary in lieu of notice then you are entitled to 8 weeks of your total benefit.

What is the situation of a company car or its financial benefit being included in a redundancy package. Part of your pay is the use of a company car. 8 replies 17 5k views oldbones forumite. In general if an employee is.

Only 30 000 is tax free so kirandeep will pay tax on the remaining 10 000 as she s a higher rate taxpayer that s 40. We start with the position that the national employment standards nes under the fair work act 2009 the act would not require the inclusion of vehicle allowances when calculating redundancy pay.