Redundancy looming....Can they do this?

topbargaingirl

I was told my job was being made redundant.
They've offered redundancy etc.
Told I can re-apply for job but on £5k lower pay and accept half redundancy pay?

Advice welcome,

Thanks

Pete111

Sounds like they are making a pigs ear of this

From your post it looks like your role isn't really redundant...but you are being asked to take a pay cut. In order for you to accept the pay cut they are offering to pay you 50% of the redundancy pay that would be available if the role was being made redundant. Which it probably isn't.

There are potential tax evasion liaibilities in there for you and the company so be careful here as they sound like they don't know whether they are coming or going. Simply put, if the company make a redundancy payment to you (tax free) but you stay on their books the HMRC are going to spot it!!

If however what they are saying is somthing like:

'As part of the consultation we have decided the role can continue but only at a lower salary (with a one off taxable 'sorry about this' bonus to you) or it will have to be made redundant' then this is may be just about ok in employment law....though other factors (such as whether other similar roles exist) may come into play

If they are offereing you the chance to apply for a lower paid but different role also then this is ok too. but again, the half redundancy pay is a silly thing to offer as your role is either redundant or it is not.

Let me know if the above makes any sense - it's probably not the clearest post I have written!