Made redundant after handing in notice to employer

My nephew’s partner was called back into work on Friday after her shift had finished and told that her employer was insolvent, and that she and all her colleagues were redundant with effect from that evening.

She has written to her previous employer to ask for her statutory redundancy pay, plus PILON and outstanding wages/ holiday pay.

She had “seen the writing on the wall” for some time and she had already given her notice to her employer and was actively job hunting. However she is concerned that, because she had given her notice (she still had 8 weeks notice to work) this might undermine her entitlement to redundancy pay and PILON.

I think this would be unfair if this was the case, but I would appreciate any advice so that I can reassure her (or otherwise)


Thank You

Comments

  • withabix
    withabix Posts: 9,508 Forumite
    Have they gone bust? Administrator in place or Receiver? or still trading under previous management?

    Working your notice doesn't affect redundancy payment rights, however if the company is in Receivership she will be in the queue with creditors.

    8 weeks notice STILL left! How long had she been working there???
    British Ex-pat in British Columbia!
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Interesting not considered this before

    probably,

    redundancy in full

    PILON residual notice.

    Holiday no change.
  • hoops120
    hoops120 Posts: 52 Forumite
    Thanks for your reply.

    I don't know all the details about the company, but I think it is receivership.

    I understand that she has been advised to write and request the money from her previous employer, as a first stage before she can apply elsewhere (National Insurance fund?)

    She has only been there for 3 years and I think her terms and conditions were inequitable to say the least. It was a low paid job, she had to give them 3 months notice and yet they only had to give her one month’s notice. They had also tried to impose some rather “dodgy” arrangements in the past about holiday entilement and pay.

    [FONT=&quot]After the initial shock and hardship I am hoping it will work out OK for them, as she has now been offered another job which, whilst not well paid, is promising better longer term training and opportunities[/FONT]
  • withabix
    withabix Posts: 9,508 Forumite
    edited 14 April 2010 at 6:22AM
    hoops120 wrote: »
    , she had to give them 3 months notice and yet they only had to give her one month’s notice.

    Illegal for a start (but doesn't help her much!)

    Under employment law, employers are not allowed to require an employee to give them more notice than the employer has to give the employee, so she could have walked at the end of one month's notice.

    If the company is in Administration or Receivership she needs to find out who is dealing with this and write to them claiming the money she is owed, although it will be a very long time before she gets anything, if ever. The Adimistrator (or Official Receiver) will write to her eventually, advising that therre isn't any money to pay wages or redundancy, then she will be able to apply to the government fund.
    British Ex-pat in British Columbia!
  • The administrator/management would be mad to pay redundancy or allow it here. The OP's family member had resigned and liability would be restricted contractually to outstanding salary, holiday pay and the notice period.
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