If i get rehired do I have to pay back redundancy?

Malakesher · 30 May 2017 at 6:34PM

On may 21st the store I worked in closed down and I was made redundant.
Because of this closure a local store that is part of the same company has received an uptick in business and are now offering me a job there.

I have been told by my old manager that if I get rehired by the same company within a certain time frame they will take back the redundancy pay i received.

Also I was working on a 40 hr/w contract but this new job would only be 20 hr/w so I have still lost half my income.

Edit: Just to add, the redundancy pay i received was statutory redundancy. Nothing extra
Any advice would be appreciated.
Thank you

sangie595 · 30 May 2017 at 10:18PM

If that is what their policy is - and some companies do have such policies that mean rehiring results in paying back redundancy - then yes... you must decide between the money and the job. You need to check whether this is their policy and what that policy says.

getmore4less · 31 May 2017 at 5:52AM

As you have the job offer after* you have been terminated and if you have a gap of at least a week they should not be reclaiming statutory redundancy(anything over that they can make up any rules they like)

* If you get an offer before you finish then the gap can be 4 weeks.
Have you really finished/terminated employment, not on notice or garden leave)

I would say that 40hr to 20hr is not a suitable alternative if they are trying to offer that as the reason they can recover the statutory redundancy.

if you decide you want to go back and they do claim the money back(even if they shouldn't) then make sure you have full continuity of employments and service recognised as if you had not left.

Malakesher · 31 May 2017 at 11:50AM

getmore4less wrote: »

As you have the job offer after* you have been terminated and if you have a gap of at least a week they should not be reclaiming statutory redundancy(anything over that they can make up any rules they like)

* If you get an offer before you finish then the gap can be 4 weeks.
Have you really finished/terminated employment, not on notice or garden leave)

I would say that 40hr to 20hr is not a suitable alternative if they are trying to offer that as the reason they can recover the statutory redundancy.

if you decide you want to go back and they do claim the money back(even if they shouldn't) then make sure you have full continuity of employments and service recognised as if you had not left.

I officially ended my employment on the 21st (10 days ago) and have not yet started the reemployment, and the offer was only given to me yesterday. Also I did only get the statutory pay nothing more.

Any officials sources saying that I only have to be unemployed for a week? I have been trying to find something quotable but there is little to no discussion on reemployment after redundancy.

Also I agree that if they do want my redundancy back I will insist that I don't lose my previous record of service.

Thank you for the advice.

elsien · 31 May 2017 at 11:56AM

Malakesher wrote: »

I have been told by my old manager that if I get rehired by the same company within a certain time frame they will take back the redundancy pay i received.

What time frame have they told you for this?

getmore4less · 31 May 2017 at 1:34PM

Malakesher wrote: »

I officially ended my employment on the 21st (10 days ago) and have not yet started the reemployment, and the offer was only given to me yesterday. Also I did only get the statutory pay nothing more.

Any officials sources saying that I only have to be unemployed for a week? I have been trying to find something quotable but there is little to no discussion on reemployment after redundancy.

Also I agree that if they do want my redundancy back I will insist that I don't lose my previous record of service.

Thank you for the advice.

Its part of the employment act.

there are two relevant sections,

The first bit are the rules on when a redundancy is not a redundancy due to reemployment 141 in the following link.

http://www.legislation.gov.uk/ukpga/1996/18/part/XI/chapter/II/crossheading/exclusions

the second is continuity of employment 210.4 in the following.
http://www.legislation.gov.uk/ukpga/1996/18/part/XIV/chapter/I

Malakesher · 31 May 2017 at 3:52PM

elsien wrote: »

What time frame have they told you for this?

This was more of an informal discussion and I wasn't given exact figures but it was implied that it could be up to several month.

getmore4less wrote: »

Its part of the employment act.

there are two relevant sections,

The first bit are the rules on when a redundancy is not a redundancy due to reemployment 141 in the following link.
Link 1

the second is continuity of employment 210.4 in the following.
Link 2

* I have removed the URL's because I can't post links.

Thank you so much for this
Just to clarify in the first part under 141.1 it says:

'141 Renewal of contract or re-engagement.

(1)This section applies where an offer (whether in writing or not) is made to an employee before the end of his employment—

(a)to renew his contract of employment, or

(b)to re-engage him under a new contract of employment,

with renewal or re-engagement to take effect either immediately on, or after an interval of not more than four weeks after, the end of his employment.'

Now would that four week time frame not affect me because the offer wasn't made to me before the end of my employment?

Again thank all of you for your time.

getmore4less · 31 May 2017 at 3:55PM

Thats my reading of the rules they have to make the offer before you leave

sangie595 · 31 May 2017 at 4:54PM

However, just to be clear, none of this means they have to offer you a job; or having offered one, can't withdraw that offer. There is a big difference between the legal position about redundancy pay, and whether they have to employ you. If it is their policy that they will not employ someone who hasn't repaid redundancy pay, then that is their policy. It is up to you whether you accept that term or not.

patman99 · 8 June 2017 at 10:00PM

It must be a company rule. Ask them what the gap needs to be, then arrange with the new store to start a week after the period ends.

My b-in-l was made redundant from a job and on his way out on his last day, was approached by a manager of another department who offered him a job starting the following Monday. He still got to keep his redundancy pay.

getmore4less · 9 June 2017 at 1:51PM

patman99 wrote: »

It must be a company rule. Ask them what the gap needs to be, then arrange with the new store to start a week after the period ends.

My b-in-l was made redundant from a job and on his way out on his last day, was approached by a manager of another department who offered him a job starting the following Monday. He still got to keep his redundancy pay.

Accepting that job(and starting within 4 weeks) made the job no longer redundant(that's the law).

that means any tax free payment was paid in error as it should be taxed.

If i get rehired do I have to pay back redundancy?

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