www.iva.co.uk

Hi I'm currently 12 months into my iva paying £500 per month which is fine but I've just been made redundant my redundancy pay on my final wage slip was £9200 + it had my final 2 weeks pay at £700 and owed holiday pay of £900 I was told I could keep 6 months pay at £1400pm this equals to £8400 so I should owe my IVA £800 if I don't find employment within 6 months, but my IVA is saying I have to also hand over my last 2 weeks pay and my holiday pay is this correct ? Thay are saying this is classed as a windfall but surely my last wage and holiday pay can't be classed as a windfall.
Any advise would be greatly appreciated.
Steve

A windfall is usually income that is not work related --- I would say that holiday pay and the final 2 weeks were and so should not be classed as a windfall. Have you spoken to your IP directly, or just a case handler ?

Irrespective of whether they class it as a windfall or not, not sure why they are, you are still entitled to keep 6 months to live on so this still amounts to £8400. If they take the holiday and wages owed this will leave you less than 6 months income.
I would request to speak to your IP or a senior representative as I do believe you are being incorrectly advised. Obviously if you returned to work in under 6 months then the redundancy would be the windfall but you can discuss this further once you have found new employment. Which company are you with?

Keeping 6 months worth of redundancy is not a guarantee - it will depend on the terms of the IVA and the stance of the IP.

Gary, I read it as the compensation for redundancy is £9200, out od which he is keeping the equivalent of 6 months salary --- all well and good. But he is also receiving holiday pay and two weeks wage in addition to the redundancy compensation .... which they are intent on taking all of.

Hi and thanks for your feedback
My final wage packet was broken down as per the below.

Redundancy pay £9200
Wage £700
Holiday pay £900
Total £10800

The t&c's on my contract state that I can keep 6 months wage which is 6 x £1400 = £8400 so offered to pay them them £800, but they are demanding that I pay my final wage and my holiday pay on top of the £800 which I feel is really unfair.

They have been really arsy and don't seem to understand my argument they are saying that under section 19 on my signed contract that all of my redundancy is classed as a windfall below is the email I received regarding section 19 I looked over section 19 and it doesn't mention anything to do with holiday pay or final wages it just states inheritance lottery wins ect

I have attached a copy of the proposal that you have signed which shows paragraph 19, the windfall clause.
The windfall clause captures any monies you receive which is over £500. These monies can include anything from a lottery win, inheritance or a redundancy.
Even though your holidays are stated as separate from your redundancy on your wage slip, this is monies you are only receiving because you were made redundant.

Non of it makes any sense how can they expect my final wage and holiday pay let's say I walked straight into employment they would want all of my money which would leave me nothing to live on and I'd still have to pay my monthly payment of £500 and wait 4 weeks untill I get paid from my new job.

They are being really rude and they don't see my point, I really don't know what to do and I'm worried my IVA will fail causing me to go bankrupt and loosing my house etc.

Again any info would be greatly appreciated

Thanks again

I would say that, to prevent failure, as you are concerned about, that you pay over the sums they are asking for, under protest, whilst demanding a full discussion direct with the IP on the matter. Put this in the form of a formal complaint about the way this is being handled. If you have no resolution within, say, 28 days, you will escalate the matter to their regulatory body, for consideration, via the Government Gateway.

Unfortunately, so much of the IVAs terms rely on IP discretion ----- Holiday pay might be questionable, but I cannot see how they could describe 'wages' as a windfall !

Oh ... government gateway for escalation is here: https://www.gov.uk/complain-about-insol ... actitioner