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Young Parent Payment : Contents

Delayed redundancy payments

If the young person has been granted a benefit and then receives a redundancy payment within 52 weeks after the date the young person's employment ceased, the benefit stand-down and date employment ceased must be reassessed.

To review the initial stand-down:

  • divide the redundancy payment by 26 weeks (and 52 weeks if the young person's entitlement date to benefit is on or after 1 May 2005). Add the appropriate weekly redundancy amount to the young person's average weekly income received before employment ceased.
  • re-assess the length of the initial stand-down period to determine a new commencement date. Remember to use the calculation that provides the young person with the lesser stand-down period.

and

  • establish an overpayment for any monies paid to the young person prior to the reassessed commencement date

Payments received more than 52 weeks after redundancy

If the young person receives a redundancy payment more than 52 weeks after the date the young person's employment ceased, the payment is treated as a capital payment. The young person's entitlement to any Extra Help must also be reassessed.

Legislation