Pay cut and redundancy pay

Agent_C

I think this might be a long shot but I would be grateful for anyone's thoughts! My OH has been with his employer for nine years. He received a notice of redundancy just over 2 years ago, and chose to accept redeployment to a post that had just been downgraded and so which was at quite a bit less salary than his old post. The employer's policy was to keep him on his old salary for 2 years. This 2 year period ended at the end of last year, so his salary dropped.

Recently he received another notice of redundancy. The employer has calculated his redundancy pay based on his lower salary, so it is quite a bit less than what it would have been if he had been made redundant a few months ago - in fact, it is a lower offer than the one he received 2 years ago, despite the fact that his hours have remained the same.

This does seem very unfair, but I'm not sure if he has any case to argue - he has pointed out the situation to the employer but they won't capitulate. Does anyone have any suggestions?

jazzyman01

He accepted an alternative post and the salary that went with it. He was very fortunate that they kept him on the higher salary for 2 years.

With respect your OH seems to want his cake and eat it. He elected to remain with the Company on a higher salary rather than take redundancy and leave. He has had the benefit of the enhanced payment for 2 years which probably more than compensated him for the loss of the difference in redundancy pay.

The Company only have to base the redundancy on current salary. The only slight possibility for him is if the change came in the last 12 weeks because redundancy calculations are based on the salary of the last 12 weeks (capped at £400 per week unless there is a Company agreement to the contrary).

Agent_C

I will check regarding whether his pay has dropped in the last 12 weeks. But I think it is a little unfair for you to say that my OH wants to have his cake and eat it. The post that he was redeployed into was originally at the same grade as his old post, but the company downgraded it along with a raft of other changes that left employees worse off. In redeployment situations they used to keep people on their old salary indefinitely, but changed this to two years just before making all the redundancies 2 years ago. This is a company that prided itself on its good package of employee benefits rather than its high salaries. The Chief Exec and other senior management have managed to negotiate themselves substantial payoffs over the past couple of years (despite many of them presiding over major c***-ups), but it appears that this benefit is denied to those employees further down the ladder.

McKneff

The employer is correct Im afraid,

I have worked for my company for 22 (5 days a week) full time, last year went down to part time (3 days a week) and if I was
to be made redundant it would all be calculated on my reduced hours, and yes it does seem fair but there you go, thats life.

If you thnk about it though, if he had been made redundant two years ago, yes the payment would have been bigger but he may have spent the last two years job hunting. At least he's had two further years employment out of it.

What other people get is really irrelevant.

Hope he finds a job soon.

jazzyman01

I am sorry that you feel my post was unfair. That was not the intention. If your OH was on different grade and it was only just reduced then he must have agreed to it or, alternatively, following consultation they gave him notice under his contract to change. This would be a minimum of 9 weeks if he has completed 9 years.