Contract after 8 years

ednamay78

My husband as come home today with a contract to look through and sign, he has worked for the company for 8 years and there is just a few areas of concern.

It as stated that in the event of redundancy he will get paid a week for every year worked but only up to 12 weeks is this correct??
also states the base rate of pay which states that it may be increased due to performance which he as been on more than that for a while, however states that it can also be decreased due to performance which is fair enough but also on the amount of work the business has got which does not make sense.
Where does he stand if he does not sign ?
Thank you in advance xx

LittleVoice

ednamay78 wrote: »

It as stated that in the event of redundancy he will get paid a week for every year worked but only up to 12 weeks is this correct??

Statutory redundancy does not have a cap like that. The pay depends on length of service and the age of the individual. For instance someone aged 62 who had worked for a company for 20 years would be entitled to 30 weeks pay (but this is capped at £380/week).

There's a calculator here - http://www.direct.gov.uk/redundancy.dsb

However, the company can pay more than the statutory amount.

.....

Twelve weeks is the maximum notice that has to be given in terms of statutory notice periods. Perhaps the company has confused that with the redundancy pay?

Even if he signed the contract, it could not reduce his entitlement to statutory redundancy pay, so it would not be capped at 12 weeks by £380 if he was entitled to more under the statutory scheme.

LittleVoice

ednamay78 wrote: »

also states the base rate of pay which states that it may be increased due to performance which he as been on more than that for a while, however states that it can also be decreased due to performance which is fair enough but also on the amount of work the business has got which does not make sense.
Where does he stand if he does not sign ?

If he doesn't sign but continues to work for the company, I believe it would be deemed that he had accepted the contract. He would have to write to them to say that he did not accept specific conditions.

I'm afraid I just do not understand what they are trying to say in respect of base rate pay. Could you post the contract wording verbatim?

clb776

After being given advice regarding contracts, by working there for 8 years your husband has effectively agreed to this contract already.

I would be worried as to why they have all of a sudden given him a contract.

Uncertain

clb776 wrote: »

After being given advice regarding contracts, by working there for 8 years your husband has effectively agreed to this contract already.

Not correct.

He has agreed to a contract that reflects the terms on which he is currently working.

If the document offered differs from this then (and he is unhappy with the proposal) then he needs to decline in writing and discuss the matter with the firm.

Googlewhacker

I think the 12 weeks refers to the notice of redundancy but would be worth checking, not the actual redundancy.

Uncertain

Googlewhacker wrote: »

I think the 12 weeks refers to the notice of redundancy but would be worth checking, not the actual redundancy.

Yes.

Assuming they are not trying to act illegally if he were made redundant he would be entitled to a week's pay in lieu of notice for each year he had worked there (up to 12) PLUS statutory redundancy pay.