Graduate redundancy

Edinburgh-foodie

Hi everyone

Last summer I interned at a major bank (guess, it's obvious really), and they offered me a job for when I graduate this summer.

They just phoned up and said that they were not taking on any graduates this year, and would review the situation in 2010.

I had been relying on this job to pay off my student loan, and to move in to a proper flat rather than a run-down student place!

On one hand, I know I should take this as an opportunity to do something I really want to, but on the other hand, the timing means that the majority of graduate schemes are already closed, so my options are severely limited.

Do you think I should ask for some kind of compensation? I know I am probably not entitled to any, but I've gone from a guaranteed £25k in September to nothing, and I've got my dissertation and exams to deal with as well!

This is really the last thing I need at the moment (have had a very stressful term, had pneumonia and suffered bereavement too), unfortunately you guys get to listen to my whining.

Thanks xx

dmg24

No, I don't think you should go for 'compensation'. Focus on finishing your course and finding a different job, whether it be a graduate position or not. Good luck.

SapphireFlames

No, I don't think you would entitled to any kind of compensation I'm afraid. Few graduates earn a guaranteed salary of £25k straight after leaving university. Also, where would the compensation come from? If they paid you compensation, then they would have to pay it to all the other graduates too, which would make the bank's debts even worse.

I haven't paid off my student loan and I'm 25, but I'm not too worried about it, as the interest rate is limited to the inflation rate.

Why restrict yourself to major graduate schemes? There are plenty of small and medium businesses out there that could use your skills. I suggest you Google the words "Shell Step", which specialises in placing recent graduates into SMEs (small & medium enterprises). The projects are only temporary, but if you do well then the company may let you stay permanently.

happywarmgun

- Did the job offer come in writing?
- Did you sign to accept it?
- Have you kept this documentation?

If you have a contract and they're in breach you can and should seek some recompense. However - whether the documentation you have can be construed as a contract depends upon what it says.

I seem to remember many moons ago when I started a graduate job, my job offer WAS a contract - but had a number of get-out clauses for them (mainly around things like if I fail a medical, or if I tested positive for drugs, or if any of my references failed to check out) - I signed up on a deffered for a year and swanned off round the world. Had the economy gone belly up during thattime and they chose not to honour the contract damn right I would have got compensation... Interestingly, the way it was written I could have pulled out at any point without them having any come back. Different times....

kiddy_guy

Assuming you have a contract, you would be entitled surely to the notice period.

You could argue other jobs have been turned down in favour of this one.

savingholmes

I don't think you have any entitlement to compensation - especially as they have given you plenty of notice. You could ask them to make you an exgratia payment of say a month's notice as a good will guesture. When other companies have pulled out of graduate offers - they have often made a goodwill payment....

Try it - you have nothing to lose... Don't be vitriolic in your letter tho. Acknowledge the problems they are facing, explain the impact their decision is having on your finances and ask a) for a financial goodwill guesture and b) for reassurance that if things pick up they will consider you again with perhaps just a final interview rather than having to start the selection process from scratch.

Take care not to make enemies at the start of your career - you don't know where your future career will take you at this point.... plus the recruiters themselves may move around and remember you...

byrneand

If you've got a signed contract then its definitely worth following up.

Pete111

Hold on, that wasn't you smashing in their windows in Bishopsgate the other day was it EF? If so the big flatscreen TV you swiped should be adequate compensation..

Seriously though, (And as posted by others) you could drop them a line and try but unless you have a wrirtten contract I think it is unlikely you will be owed anything.

Savingholmes is right though - if you do ask, ask nicely!

happywarmgun

savingholmes wrote: »

I don't think you have any entitlement to compensation - especially as they have given you plenty of notice. ...

Hang on. Before the chap/lady is given duff advice - it does need to be established if you job offer consitutes a contract and what it says. The amount of notice is neither here nor there if they are breaching a contract. I am absolutley certain that if this had happened on the terms of my graduate offer which WAS a formal contract (admittedly well over a decade ago) they would have been in clear breach of contract and could be pursued for some decent damages accordingly.

That said - before you go all legalistic I would agree that the right way to go about it first is to approach them in a freindly way and see what they are willing to offer. Explain the situation that their reversal has put you in e.g.:

- Having recieved their concrete offer you stopped looking and have therefore missed out on the chance for alternative employment.
- That the current recession magnifies the impact of you having missed out on these other opportunities for 'graduate milkround' jobs this year as the numbers of such jobs available are diminished next year.

To garner sympathy you may also want to let them know, if true, that you committed some expenditure on the basis that you had you the job in the bag - that point is immaterial from a legal point of view but may get them thinking about doing the right thing. You may be surprised at just how many people in large organisations are very fair minded if approached with a proper fact base and keen to do the right thing whenever possible.

If they come back with nothing I would seriously consider going down a legal route. Note that if your offer was 'conditional' (e.g. on you getting a certain grade in your finals) then you will have to still meet these conditions to have a leg to stand on.

You have been shafted - regardless of what others say on here don't be shy about trying to get some financial remedy for that.

Let us know exactly what the terms of your offer were, and we'll have a better understanding of how far it is worth pushing.

clairehi

OP, have you signed a contract of employment?

If so, check it, you may be entitled to payment for a notice period.

I agree with happywarmgun's advice below. whether or not you are entitled to anything, a polite letter setting out the difficulties they have placed you in, and asking nicely for them to consider offering a discretionary payment to help alleviate this (perhaps payment equating to salary for a sensible notice period such as one month)

this happened to a friend of mine who was let go before the job started, and the company gave her a month's salary in lieu of notice. If you are effectively being made redundant before the job starts then I dont think you are entitled to anything as a legal minimum unless it is in your contract.

Edinburgh-foodie

Thanks for all your replies!

I do have a contract, just dug it out and had a read over it. It was a confirmed offer (subject only to me passing my degree and a security check), and it does also state notice periods.

The problem is, that on the bank's side, they've given me nearly 5 months notice. However, from my perspective, the timing is doubly lousy. It's a whole load of extra stress before my finals, and I have turned down interviews with other graduate recruiters as I thought I had a job in the bag, most of whom have now filled their schemes.

I know graduate recruitment is not the only form of recruitment (I actually applied for the shell step programme for the last two years but got better offers, plus weirdly they don't really do placements in Edinburgh city centre), but I've had my fair share of dead-end jobs over the last few years and was looking forward to a job with a bit of interest and responsibility! I guess I am just angry that I have spent 4 years and £20k worth of debt getting a degree to end up in the same minimum wage temping job I had when I left school, and through no fault of my own. Instead of working hard last summer to get an internship and then a job offer, I would have been better off leaving it to the last minute!

I have emailed the woman who phoned me outlining the extra exam time stress and lack of comparable jobs at the moment (more formally/politely than here!), but she hasn't replied yet. I've also emailed my manager from last summer asking if they have any other jobs that it might be worth applying for. Not hopeful though!

P.S - I have a rock solid alibi for last week, I was no where near Bishopsgate!

Back to revision now