redundancy question.

oscar52

I work for a large company where several people have been made redundant I and there are more on the way).

I am 99% sure everything was followed correctly - consultation etc. and everyone has been given their final figures, written notification etc etc.

However, after speaking to one of those people last week, they have all been informed they need to go to a solicitor (they said to get everything signed) - Is it necessary to involve solicitors with reundance payments if you actually understand all the documents?

Thanks in advance

Debt_Free_Chick

It sounds like they are offering you all a compromise agreement. Legally, this is a document whereby you and the company mutually agree to terminate your contract of employment "for no reason" and in return, the company will compensate you.

These are relatively common, especially in "white-collar" type jobs and always recommended where you are getting severance in excess of the basic statutory redundancy pay.

Yes - you need to consult a solicitor to ensure that you are getting what you're entitled to. The company should add an amount to your compensation payment to cover this - typically, £300-£500. Bear in mind that this fee is not intended to cover any costs for having your solicitor fight your corner and negotiate a bigger payment - you would have to pay for that. The fee and consultation is really just to "tick the box" which says "yes, the agreement is legal and you are getting what you're entitled to".

HTH

oscar52

Well, I know they are getting what they are entitled to (and more ) as getting 4weeks/yr.

What I didnt think of in my original post though is, could this be down to TUPE? Job isnt being terminated as such, but is being exported to India.

Also, one further question - can the company refuse to pay your severance if you do nook seek legal advice (as I believe this was mentioned)

Debt_Free_Chick

oscar52 wrote: »

What I didnt think of in my original post though is, could this be down to TUPE? Job isnt being terminated as such, but is being exported to India.

Sounds like TUPE may be a factor, but relocation is probably not feasible TUPE does not guarantee that redundancy is not an option, however. You can still be redundant in a TUPE situation and it sounds like this may be the case here.

Also, one further question - can the company refuse to pay your severance if you do nook seek legal advice (as I believe this was mentioned)

Why would you not seek legal advice? It's just common sense that you seek legal advice where you are signing a legally binding contract.

oscar52

Debt_Free_Chick wrote: »

Sounds like TUPE may be a factor, but relocation is probably not feasible TUPE does not guarantee that redundancy is not an option, however. You can still be redundant in a TUPE situation and it sounds like this may be the case here.



Why would you not seek legal advice? It's just common sense that you seek legal advice where you are signing a legally binding contract.

Thinks this is just the way its been put across - ie if you dont see a solicitor before you sign this, you dont get your money, regardless of whether you understand the document or not.

isotonic_uk

if you receive severance pay from your employer and then immediatly find another job. Are you still entitled entitled to the severance pay? Do you need to let your current employer know. thanks

oscar52

isotonic_uk wrote: »

if you receive severance pay from your employer and then immediatly find another job. Are you still entitled entitled to the severance pay? Do you need to let your current employer know. thanks

Actually, this was one of the conditons in the above situation.

They said the answer was no. basically, if you leave before your officailly told you can, it can be treated as job abandonment.

KathysBoy

oscar52 wrote: »

Also, one further question - can the company refuse to pay your severance if you do nook seek legal advice (as I believe this was mentioned)

Its fairly standard practice to use a compromise agreement in redundancy situations these days, because by signing it you sign away any rights to subsequently go to an employment tribunal. If there is a compromise agreement, THEN there is a legal obligation on your employer to ensure that you get independent legal advice, and they HAVE to pay for it. Your legal advisor must sign the agreement as well. If they don´t then your employer will be unable to sign it, and you don´t have an agreement. It doesn´t matter that you understand it. I think its covered in the Employment Rights (Dispute Resolution) Act 1998.

Unless you´re unhappy with the content then I don´t see it as an issue. If you are unhappy with the content, then you should seek legal advice . LOL:rotfl: Just type compromise agreement into Google. There´s lots of info on tinternet

oscar52

Thanks KathsBoy

That FINALLY makes sense (no disrespect to others that have posted) I couldnt see why the company insisted that people see a solicitor - what you say makes perfect sense now.

It actually doesnt affect me at present (although it should have done, but thats another story) but it could well do soon - within the next 12 months or so.