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Some advice please

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Mythi
Mythi Posts: 140 Forumite
edited 3 April 2010 at 9:50AM in Redundancy & redundancy planning
I'm currently on sick leave from my job with a small limited company. Three weeks ago I went into the office and whilst there was told by my boss (the owner) that the company were purchasing a property some 100 miles away and that as I dont drive/wouldn't be able to relocate I would be made redundant. He also stated that he didn't think that they could make me redundant whilst I was 'off sick' but the redundancy would only be applicable if the purchase of the property was successful.

I did ask what sort of redundancy package would be in the pipeline and was advised that it would be approx 13 weeks @ £300.

To say this was a shock is an understatement. I have 12 years service with the company and previous indications pointed to this job seeing me employed for a few years at least!

Since this was first mentioned I have asked a couple of times how the purchase of the property is progressing and also (again) asked for an indication of the amount of money I may expect to receive (the last suggestion was a months notice in lieu and 13 weeks redundancy @ approx £300). However, each time I have asked I have also been told that the purchase of the new premises may well fall through in which case things will continue on as before (ie no redundancy)

Can I be made redundant whilst being signed off sick?

Can anyone clarify that if the redundancy goes ahead that the above is all I am entitled to? (To my knowledge we dont operate an enchance redundancy scheme and I would not necessarily expect this as I am currently receiving full pay whilst being off sick which is at the discretion of the management).

My letter of appointment states that a months notice is required by either party, does this stand in the case of redundancy?

I think I have read that in the case of redundancy 1 weeks notice for each years service should be given by the company and is often paid as PILON. If this is the case would the 12 weeks start from the time this was first mentioned or would it have to be notified to me in writing first?

Any help regarding the above would be really appreciated.

Many thanks.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 3 April 2010 at 10:32PM
    If the job moves to a different location then that is an automatic potential redundancy(even with mobility clauses).

    If relocation is not an option then is some other arrangement like working from home worth considering as part of consultation.

    Assuming the job is redundant.

    12 years service gives 12 weeks notice(since the contract is lower) this is the max. You ned to be officialy notified, if they want to terminate earlier then they can pay this. Anotherr option might be garden leave where you get aid under contact but are not reuired to work(often to stop people working elsewhere).

    If the 12 weeks takes you over 13 years service then you have 13y for redundancy.

    Statutory redundancy is service and age related but capped at £380(since Oct 09) if you earn more.

    You work back from the date you would terminate not forward from a start date.(when did you start, and birthday if over 41? if you want help to work it out)

    Outstanding holiday pay should also be paid, remember you accumulate holiday while on sick.

    Loads of info online, (search redundancy pay) have a read and ask any questions here are a few to get you started.

    http://www.direct.gov.uk/en/employment/redundancyandleavingyourjob/index.htm
    http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1079123792

    HMRC links can be a bit hard to follow but cover some of the more technical points(not needed normaly for basic packages).
    http://www.hmrc.gov.uk/MANUALS/eimanual/EIM13760.htm


    Even if this time it does not happen worth getting the info so you know were to look if it does happen later.
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