Redundancy from a charity based organisation

Mim_2

My daughter has worked 16 hours per week for the last 3 years for a small charitable organisation that provides childcare provision. She (and all childcare workers) got a letter from them last week to inform her that they have lost some of their childcare contracts funding and the company will either be closing completely or continuing with a minimum number of staff.

Since the letter she is being called for a meeting tomorrow afternoon. She says that she's heard that the company will be continuing but only with the 3 workers who have contracts for 10 hours per week or less. She fully expects to be told that her employment contract is being terminated.

What bothers me is that she's been told by the manager that she won't be eligible to any redundancy whatsoever as the company is a charity and exempt from redundancy law. Is that right? She has never received a contract of employment from them in the 3 years that she's been there. I told her on numerous occasions that she should insist on one as she's been messed about with on a few occasions, but she never followed it through.

Does anyone have any advice please?

Mim

LittleVoice

Charities are not exempt from employment law!

So she should have been provided with written particulars.

Have they been providing payslips for the salary payments?

Has she received P60 forms?

ohreally

Being a charity does not absolve the employer from redundancy liability.

Ask the manager to clarify his position - which redundancy law is he referring to, the response will be interesting.

briona

Mim wrote: »

What bothers me is that she's been told by the manager that she won't be eligible to any redundancy whatsoever as the company is a charity and exempt from redundancy law. Is that right?

Like other posters, I can assure you that that's not true – her employer is taking the p*ss! I worked for a charity which unfortunately had to make people redundant and everyone was given redundancy pay. Have a read through the link below, and if necessary, get her to pass it on to her employer. I have extracted two key pieces of information from it (see below), which I think will reassure you that she is indeed entitled to payment.

http://www.berr.gov.uk/whatwedo/employment/employment-legislation/employment-guidance/page15686.html

Your employer MUST give you a lump-sum payment if:
• you are made redundant;
• you have at least two years continuous service

You will receive payment only if you are an employee working under a contract of employment. Contracts of employment may be spoken or written and last for any length of time or be fixed. In law, employees generally have a contract as soon as they start work and by doing so prove that they accept the conditions offered by the employer.

Mim_2

Fantastic help - thanks everyone. Yes, she has been receiving regular payslips and P60s.

I'm printing off key sections of the berr.gov.uk webpage for her and will speak to her before she goes for her interview this afternoon.

Mim_2

My daughter went to her meeting and was told that she's to face redundancy on 31 October. She has 2 weeks holidays owing so will actually finish at the end of this week.

She told them that she knew that she was entitled to redundancy pay and asked them how much she is due to get. They told her that she's been there for 3 years and will receive 3 weeks redundancy pay. I've just told her to get them to confirm everything in writing asap so she can get down to the DSS.

Thanks for the help.

briona

Mim wrote: »

She told them that she knew that she was entitled to redundancy pay and asked them how much she is due to get. They told her that she's been there for 3 years and will receive 3 weeks redundancy pay. I've just told her to get them to confirm everything in writing asap so she can get down to the DSS.

Yay! Result! :T

Three weeks' pay is right – by law they can't pay her less. The statutory minimum for redundancy pay is 1 week's money per year worked (after 2 years of service). Remember that this will be paid gross as it's not liable to tax so she will get rather more in her pay than usual.