Redundancy + subsidiaries

DocDJD

I have been working for a company for the past 12 months whilst being under threat of redundancy - most people from the site have been made redundant already. My service at the company is 4 years, with the company paying 4 weeks wages for every year worked. My bosses have said that if we (the remaining employees) got another job then they will make us redundant.

So, thats what I did, all off my own back with no assistance from my company. However, the company that I have got a new job with is owned by the same parent company as the company I am currently working for. My company have now said that as the firm I am going to work for is a wholly owned subsidiary of the parent company I am not entitled to any redundancy and I will simply be transferred into the new position.

In addition to this, my new role is approximately 100 miles from where I currently live so I will have to relocate.

Any thoughts?

Thanks!

dickydonkin

DocDJD

Has everything been finalised and completed in respect of termination of your contract - in other words is there no way back? Did you actually hand in your notice or were you made redundant?

The reason I ask is that you state that you are now being 'transferred' - not being made redundant (voluntary - apparently or otherwise).

I don't know whether this would have any relevance or not - someone else may enlighten you, but I wonder when most of the people on the site were made redundant, was the position you successfully applied for offered as an alternative position within the organisation? Companies are obliged to offer alternative roles as a way of avoiding redundancies.

It may or may not help your cause if you ask as to why it was not advertised or offered as a way of mitigating the effect of redundancies, at least then you would have then been aware that your new company was under the same umbrella as your old one. I suspect that there may be a clause that does not allow people who have been made redundant working for the same organisation again. My old company had such a policy - a bit stupid IMHO in respect of being unable to recruit skilled people when things improved - but that's another story.

Sadly, the reality is that company policy may not allow the redundancy payments in such a situation, however, I can understand that you have had the double whammy of 'losing' your job (albeit voluntary) without the seemingly generous compensation that was on offer.

When you say you will now be 'transferred', to your new company will you still retain continuous service and your former terms and conditions?

I think there is a lesson to learnt here.

It is always wise to do a little research on a prospective employer prior to interviews/job offers etc.

Good luck anyway.

getmore4less

If you transfer you get continutity of employment.

Are there any T&Cs in your current job that are better than the new that you might want to get transfered.


Would your redundancy have been enhanced you might want to get this into your new T&C's as well if the new company has smaller reduncency packages.


Ask for support in relocating.

dickydonkin

getmore4less wrote: »

If you transfer you get continutity of employment.

But the OP quoted the following;

My bosses have said that if we (the remaining employees) got another job then they will make us redundant.
So, thats what I did

I think what needs to be ascertained as I alluded to in my previous post, was if the OP's contract was terminated by means of redundancy which seems to be the case as highlighted above.

But what is confusing is the following;

I am not entitled to any redundancy and I will simply be transferred into the new position.

So was the OP's contract terminated by redundancy which would nullify any continuation of service? - Or if he was transferred, he was not technically redundant therefore his service would be continuous and would he be in a position to refuse the transfer if his contract did not stipulate a mobility clause - because if he was not technically redundant, his terms and conditions on the original contract would still surely apply?

Confusing - redundant or transferred?

DocDJD

Thanks for you replies, I hope this clears up a few points.

I have neither been made redundant or been transferred yet, this will occur at the end of the month.

I am happy to be transferred as it is a promotion with better pay.

Although, the two companies are subsidiaries of the same parent company, the company I am moving to is a recent acquisition which is not incorporated into the systems of the parent and subsidiaries. Plus the subsidiaries don't really communicate with each other anyway.

I did know that the new company was part of the same group but I did not know that if you were made redundant from one company (or subsidiary of a company) then you couldn't work for a different subsidiary. Nor did the HR departmet - it was only when they spoke to their lawyer they found out!!!

I should have continuous employment but I guess this needs to be confirmed with the new company.

dickydonkin

DocDJD wrote: »

Thanks for you replies, I hope this clears up a few points.

I have neither been made redundant or been transferred yet, this will occur at the end of the month.

I am happy to be transferred as it is a promotion with better pay.

Although, the two companies are subsidiaries of the same parent company, the company I am moving to is a recent acquisition which is not incorporated into the systems of the parent and subsidiaries. Plus the subsidiaries don't really communicate with each other anyway.

I did know that the new company was part of the same group but I did not know that if you were made redundant from one company (or subsidiary of a company) then you couldn't work for a different subsidiary. Nor did the HR departmet - it was only when they spoke to their lawyer they found out!!!

I should have continuous employment but I guess this needs to be confirmed with the new company.

Hopefully then you should have a little more job security in your new position - well as secure as can be in these turbulent times! There is nothing worse that having the shadow of redundancy hanging over you.

Your length of service should be maintained, but I still think you need to ask a lot of questions before committing yourself to the new role.

I am unaware if it is some legal aspect or company policies that precludes someone from working for a subsidary after being made redundant from the parent company or other part of the organisation.

As the company solicitor was involved, it is seemingly a legal issue. Interesting!

I hope it works out for you anyway - good luck!

Debt_Free_Chick

I may have misunderstood, but this rather reads as though you have resigned from your current position and taken up a new post with a "new" employer. If this is the case, then your service will not be linked as your employer has not transferred you - you've transferred yourself!

Questions for you ...

Has your employer terminated your employment? If so, how have they done this? If your position is redundant, your employer must have communicated this in writing and followed the redundancy procedure - did they?

getmore4less

The point is that this is not a new employer(they are related) and there may be continuity if they do not have a break in employment.

The op has not resigned they are waiting to be terminatd by reason of resdundancy and this has raised the issue.

It is important for employers to avoid accidental continuity.

I dont believe that Resignation/redundency/retirement automaticaly cause a break in continuity if you continue working on a new contract without a break.