redundancy and contributions based JSA

Hi… if I accept a volantery redundancy payment which is above the state minimum can I claim contributions based JSA.

PS. All Southampton City Council workers have just been sacked and given 90 days notice.

Unles we sign a new contract on reduced wages.

Voluntary redundancy is not treated as leaving work without just cause, no doubt because if people didn’t volunteer an equivalent number of OTHER people would be made redundant so it costs the same (see reg 71 of the Jobseeker’s Allowance Regulations).

If the payment includes a “compensation payment” , then that is earnings (Reg 98 (1)(b) and (3) a “compensation payment” is in effect anything paid on the termination of employment which is over and above a statutory redundancy payment or an Employment Tribunal award ; but it is for most people disregarded income by virtue of Schedule 6(1) of the Regs. That doesn’t stop a lump sum becoming capital after the end of the period to which it relates.

A redundancy payment is not income at all, but capital. An employment tribunal award (or court award or negotiated settlement) is earnings and taken into account for the period to which it applies (ie, notice period) and means you can’t claim JSA becsue you are treated as still being employed.

The rules are more complicated for a person who was not in “remunerative work” - 16+ hours - before being dismissed.