Redundancy - questions ?

ben2909

I only have some basic facts at the moment,but would be really grateful of some help on the following.
My Mum has been told that the company she works for has just been taken over and there will be redundancies.

Some basic facts.
She has been working there since March 1987 (23 years at present time) and is 59 (60 in few months).

Company has just sold out to another company which wants to close that branch and will offer redundancy or positions in other branches.
Transfer to another branch isn't possible as she doesn't drive and other positions are miles away (20+)
They have given 30 days consultation which will end on 4th Feb.

She has been told that redundancy will be offer to her and 1 months pay per year will be given.Currently 23 years service.

I am a little confused with some things which she has told me.

She will be paid 23 years service and also extra 90 days pay.

Surely if this is correct the redundancy will start after the 90 days giving her an extra years service?

She has also been told that this will be paid by 4th Feb.

Does this sound correct as to what i have read,she can not be made redundancy until after the 90 days are up?

Thanks

LittleVoice

Presumably the 90 days is pay in lieu of notice. The minimum statutory notice period would be 12 weeks (84 days) but I guess her contract says she is entitled to 90 days (or perhaps 3 months).

Paying one month's pay for each year of service is generous and if she wants to argue about an extra year's service, perhaps they could use their discretion to pay less. Depends on whether her contract includes the terms for the redundancy scheme.

ben2909

LittleVoice wrote: »

Presumably the 90 days is pay in lieu of notice. The minimum statutory notice period would be 12 weeks (84 days) but I guess her contract says she is entitled to 90 days (or perhaps 3 months).

Paying one month's pay for each year of service is generous and if she wants to argue about an extra year's service, perhaps they could use their discretion to pay less. Depends on whether her contract includes the terms for the redundancy scheme.

She was employed by the NHS originally then another company took over the contract but still staying on NHS pay scale,which changed to Agenda for Change a few years ago.
This is why she will get 1 month per year of service.

Thanks for the reply,but are you saying they are correct is giving notice form 4th Feb,not 90 days after that?

getmore4less

IF they are paying PILON then statutory notice(12weeks) applies to service for redundancy from the date if notification of termination.

It looks like they are officialy notifying of termination on 4th Feb with PILON of 3 months, so they should add 12 weeks from the 4th feb for the statutory notice for calculation of service for statutory redundancy.

Check the conditions of the redundancy package they can be a bit different as long as they are more than the statutory in total.

If they are playing by the book and paying out the old NHS terms they may have just overlooked this detail.


What are the pension arrangments if any?

ben2909

getmore4less wrote: »

IF they are paying PILON then statutory notice(12weeks) applies to service for redundancy from the date if notification of termination.

It looks like they are officialy notifying of termination on 4th Feb with PILON of 3 months, so they should add 12 weeks from the 4th feb for the statutory notice for calculation of service for statutory redundancy.

Check the conditions of the redundancy package they can be a bit different as long as they are more than the statutory in total.

If they are playing by the book and paying out the old NHS terms they may have just overlooked this detail.


What are the pension arrangments if any?

I have no idea what pension would be.They have mentioned that she could take early retirement.
What that be worthwhile?

LittleVoice

ben2909 wrote: »

I have no idea what pension would be.They have mentioned that she could take early retirement.
What that be worthwhile?

She needs to get a quote on what the pension payout would be.

Did she retain her pension in the NHS scheme and make payments into a different scheme when transferred to the current employer? Or did she transfer funds from NHS to new scheme?