Redundancy/waiver agreement/exgratia payment - implications/confusion

Thishitcountry

Hi folks

Hoping some kind souls may be able to shed some/any advice regarding recent sudden redundancy as a result of employer losing main client.

While on the surface a potential payoff on table is relatively attractive I am basically nervous at way whole thing is being handled by employers who have a history of - let's say - a "smoke and mirrors" approach regarding our rights/contracts/pay etc etc

(I dont trust them basically and smell potential rats and do not want to jeopardise future benefits/insurance in prospect of unemployment !)

My post may read as 'too much info' but trying to get over the 'spirit' of employers and how feel we're not being particularly fairly treated during an obviously worrying and stressfull time.

(I am posting this in all MSE forums I think may be relevant in the hope of recieving any advice readers may have as to where I stand re tax/potential JSA/PPI claim/is any of the below bull etc etc )
Many thanks for your time in advance !
(deep breath)..OK here goes ....

BRIEF BACKGROUND/KEYPOINTS

- Small company with 6 total employed (2 'bosses' 4 workers)

- Salary 28k

- My second spell working for them with 3.5 years service in this second spell there (3 years in first spell there)

- I do not have a written contract nor been offered one in either spell of employ (im generally a trusting sort !)

- Apparent for some time workload slowing yet despite requests for general info regarding this noting forthcoming (apreciate no obligation here yet they had given assurances in past that we would get "plenty of notice"

- Thurs 07th May recieved letter by hand from employer outlining reasons for fall in workload "have to scale down our business and implement significant cost cutting which is likely to involve redundancies. We shall consult with youover the next few days to discuss cost cutting, potential redundancy and measures to avoid or mitigate redundancy but we must advise you your position is at
risk..we will meet to discuss matters"

- All 'workers' invited to volunteer for 'vountary redundancy' with promise that any formal comms would state 'compulsary redundancy' (a point requested by all and agreed to by bosses relative to future JSA eligibility)

- Thurs 14th May VERBALLY informed of my redundancy. Advised and named 3 of the 4 workers to be made redundant.

Also advised that they were looking to make exgratia payment and were awaiting tax advice (put accross that it is to be a lump sum that will be tax exclusive) and how this exgratia payment would involve me having to sign a written waiver agreement in respect of any tax that may be payable. Verbally told that Fri 29th May final day of employment.

- Fri 15th May I requested clarification as to what waiver letter is/how to be worded.
Advised by 'other boss' to yesterday's meet (this switching between two bossed as to which one advises someting that has happened all through this mess and prior when whiff of redundancy came as if to keep us confused for whatever reason) that I now have a choice in terms of choose to pay tax on exgratia lump now or take chance on taking it as tax free and he stated thus need for the waiver agreement (?)

(Apologies if this does not read too well as Im really confused by it all. Incidentally this meeting was left until 4:45 pm on Fri after such a bamboozling and tense week)

-When I pressed as to the wording this waiver agreement they seem to be pressing us to sign would take (no draft copy given for consideration) I was told "oh it will be fairly wooly and say employment
has ended" and that it would disclose the amount of the exgratia payment (6k)

This wording now seems to have switched from the gentlemans agreement earlier that outcome would state 'compulsary redundancy'.
I am also concerned that this 'employment has ended' wording could be construed as misconduct or something and have an effect on upcoming PPI claim (i.e. way for ensurer to wriggle out of paying out ?)

SUMMARY

-3 FULL years service without written contract (nor ever offered one.)

-Verbally informed of redundancy (nothing in writing)

-Being asked to sign a waiver agreement that have no solid idea as to its wording. This waiver is being put accross as them doing us big favour r.e. tax avoidance as to afford us more security to live off the associated exgratia payment.

-Information coming from one boss then the other and always put over in wooly fashion and left until end of day etc (never both been present at same time to field questions/advise).

-Not really giving reasonable time to get advice as if to keep us all on the backfoot.

-Bloody confused.

QUESTIONS IM RAISING

-If they formally word communications that "employment has ended" what implications re JSA/PPI claims ?

-Any advice if exgratia payment will effect JSA/PPI ?

-What are pros/cons of a waiver agreement (from my situation and theirs) ?

-They seem very keen to hurry us to sign this waiver - although giving no real indicator as how its to be worded

-From employment law view - any comments ?

-Any comments as to way this has been handled generally welcomed also...

Thanks again in advance folks . . .

ceridwen

You DO need to have everything laid out quite clearly in writing. Particularly - I would say - on exactly what terms the employment is ending (you dont want the D.W.P. thinking that you left the job voluntarily when it comes to claiming benefit!). You also need to be quite clear whether the pay-off is clear of tax or no - and dont take THEIR word for it - you dont want to take any risk that HMRC will come chasing after YOU later for any tax that turns out to be due after all.

Emmzi

you can't sign it if they haven't written it yet!

tell them you have no problem in principle but need to see the final document. sign nothing until you have had time to read and digest it. that is only fair!