potential redundancy

WLMJ

Hi ya all,

Sorry this is so long. But we really appreciate some advice here regarding potential redundancy.

OH's company merged with another company, and they are now asked to sign a new contract coming into effect next year. After reading the contract, I have 2 questions

1: there is a clause "the commencement date of your employment is Jan 2010 however your continuous employment date with the company remains Oct,2002". My question is if redundancy happens, how will the company calculate the service period/PILON, is it from 2010 or 2002? The wording on the contract seems contradictary to me..

2: Another clause is "The company may require you to work permanently from any other location in the country. If this relocation involves moving home, it is at the company's discretion to reimburse costs or not". My question is if redundancy happens, imagine we are offered a job faraway and if we turn down the offer, what options do we have? Is it compulsory to move? Will the company say us breach the contract and not give redudancy pay etc??

The two new clauses get us worried. Appreciate if you can share some insight with us.

thanks

Pete111

1) Your service will be from 2002 - continuous employment (or continous service) is the term used to show that your service with the company predates a contractual 'start' date with in this instance, the new firm. This clause recognises and protects your length of service.

2) This depends on how far away the new office or location was. If it was within a resonable distance the company may be able to get away with not offering you redundancy as it would be deemed unreasonable for you to refuse to work in the new location and in effect you would be deemed to have resigned.

If it was a significant distance away (as per your example) the company should offer redundancy as an alternative option but may choose to offer a relocation package to enourage you to move.

I have seen both clauses plenty of times - pretty standard stuff and nothing to worry overly about .

P

WLMJ

Thanks a lot for your advice : -)

So even though on the contract it says the company can ask us to move to any location in the country, still it is subject to the reasonable distances in the end?

tks

livewire.1

if i was made redudant and started new employment within for 4weeks would i have to pay tax on my redudancy pay.

dickydonkin

livewire.1 wrote: »

if i was made redudant and started new employment within for 4weeks would i have to pay tax on my redudancy pay.

No. Redundancy is tax free up to a certain limit.

If this is your current situation, you are in a fortunate position.

jazzyman01

You could of course refuse to sign the contract with the new clause in it.