Reduction in Hours or Redundancy?

bella.wella

I have recently been told by my employer that I am having my hours cut from 5 to 2 days a week as the company can’t afford my wages. I have been offered redundancy as an alternative and have been told to think about it before a meeting on Friday when I will give the company my decision.

Obviously 2 days a week is not financially viable so it leaves me with little choice but to look for a new full time job unless I can find another part time job, which in my industry are few and far between.

I feel I have two options:

1. Agree to part time hours. Advantage is I have some money coming in whilst I look for another full time job.
2. Take redundancy with a months’ notice & hope I have another full time job secured by the beginning of March.

Option 2 will give me more money in the short term. It would take me around 3 months of part time work to earn what I would in 1 month on 5 days a week.

Legally, where do I stand in terms of taking redundancy? Will my company have to continue with my 5 day week or can they cut my hours down to 2 for the remainder of my time?
Thank you in advance.

MyRubyRed

Check out the Acas website. There is loads of info re short time working and redundancy there.

McKneff

How long have you worked for the company

You are entitled to 1 weeks redundancy pay for each year you have worked there.
You are entitled to 1 weeks notice for every year you have worked there.

You are also entitled to any accrued holiday pay.

Lady007

This is a no win situation. They can not legally cut your contractual hours in this sitation with out your consent. If you do not consent then they will make you redundant anyway.

The short time working is usually for a specific period. HAs this been mentioned?

ceridwen

Be careful - as I understand that employers can base redundancy pay on just the level of salary paid in the last few weeks (think its the last 12 weeks?). You need to make sure that - if you do get made redundant - that the payout is going to be based on your actual pay (and not some smaller - part-time - level of pay).

I presume you are childless too? If that is the case then basically you HAVE to work at least 30 hours per week I believe in order to qualify for Working Tax Credits. That is - dont think "oh well....I'll let them cut my workweek down to 2 days and make up some of the difference with WTC". That would not be possible - as you would be working less than 30 hours.

bella.wella

Thanks for all the advice. Think I'm going to go with the part time option as a) I won't get anything for redunancy and b) at least I'll have some kind of work until I get another full time job.

Ceridwen, no children & my OH earns too much for me to claim any working tax credits aswell.