Redundancy - Involuntary Redundancy Qualifies!

By Author: Kirthy Shetty
Total Articles: 2542
Comment this article

In a redundancy protection insurance it is only involuntary redundancy and not resignation that is considered. Also, make note of the fact that retirement with age, maternity leave will not be considered. In case of maternity it is paid leave to some extent and the company has not laid you off. In case of retirement you have enjoyed all the benefits as an employee and have been retired as a normal government rule and will continue to get your PF although you are out of job. This is a period for relaxation and cannot be considered out of employment.

This is only applicable when there is a financial crisis, you are suddenly thrown out of employment with or with out any notice. Unemployment can also occur when you have met with an accident and are bed ridden, when you are sick and are unable to work etc. You will be ripped off your monthly earnings soon after your paid leave gets exhausted. Therefore an insurance company will come to your rescue when your company stops paying you. Soon after you have emptied your leave balances, you can make a claim for compensation.

ASU is covered!

Accident, Sickness and ...
... Unemployement is covered under this protective policy. Going on a maternity leave is not considered as being sick. You are not out of employment and you will be paid for 60 days and in some companies it can be more than this. Beyond this period, you will have to manage from your own savings. Plan ahead, before you go on a maternity leave and have enough of savings before you plan for a kid. See, how many days of maternity leave can you afford.

This cover will pay you as long as you get back to work or find another job. Who can qualify?

You will receive payment only if you are an employee working under a contract of employment. Self-employed people and members of a partnership do not qualify under the Act though they may have separate contractual agreements..

You have the right to tell the new or previous employer that you do not want to be transferred. However, this will be treated as a resignation, and you will not be entitled to a redundancy payment. Consider all those that is covered and not covered before you decide to apply for one. Also, remember that there is a limit to which they will pay you, monthly earnings. It is usually 70% of your salary and this may be reduced if you are on a higher slab of payment.

Kirthy Shetty, Expert author, platinum status. Get all your free tips related to: Payment Protection Insurance

Get more information on: Redundancy Insurance