Advice on voluntary redundancy needed.

shellsuit

I need some advice for my Dad, so hoping someone can help

He has worked for his employer for years, but has been laid off and taken back on in the past. His current length of service runs from April 2001.

His employer told the workers (5 or 6 of them) a couple of weeks ago that he was going to have to lay them off. They were told their hours would be cut to 2 days a week (16 hours) and that the other 3 days they would be paid a retainer of £22 a day.

Then it transpired that the retainer would only be paid for 3 or 5 weeks out of 12. (I don't know if that is normal or not and can't remember the actual figure sorry?)

Because this wouldn't have been enough to get by on, my Dad and one of the other guys put in for voluntary redundancy last week.

They both had a letter from their boss today, saying that he accepts their request, gave them a leaving date of 11th March, told them the money they are due (which is right after checking it on a redundancy calculator) but says that he is unable to pay them at present as he has to talk to the insolvency people. The letter was straight forward and didn't ask to be signed (does this have to be signed?)

What does this mean and is his employer doing everything by the book?

I'll see the actual letter tomorrow, so can update if someone needs more info.

Thanks in advance to anyone who can help

getmore4less

First problem might be the notice if he has worked since April 01 then thats 9 weeks notice and that gives 10 years redundancy.

Also due any holiday accrued but not taken.

anamenottaken

getmore4less wrote: »

First problem might be the notice if he has worked since April 01 then thats 9 weeks notice and that gives 10 years redundancy.

Also due any holiday accrued but not taken.

As it is being classified as "voluntary", then it may be that just one week's notice is correct in that it is not notice given by the employer.

I think what needs to be checked is whether this does count as "voluntary" rather than the employee notifying the employer that they are claiming they are redundant on a compulsory basis.

getmore4less

Even if you agree to take shorter notice for statutory redundacy it is still 9 weeks(in this case) to count service for redundancy.

anamenottaken

getmore4less wrote: »

Even if you agree to take shorter notice for statutory redundacy it is still 9 weeks(in this case) to count service for redundancy.

Agree the redundancy calculation needs to be 9 weeks (or more depending on age of the OP's dad). And the OP has checked online that they have worked it out properly from that point of view.

It was just the amount of notice involved which would probably be whatever was required from the employee under the contract and therefore could be as little as one week. But that does need to be checked - though I suspect the employer didn't have an escalating notice period for employees in their written terms and conditions.

getmore4less

anamenottaken wrote: »

Agree the redundancy calculation needs to be 9 weeks (or more depending on age of the OP's dad). And the OP has checked online that they have worked it out properly from that point of view.

It was just the amount of notice involved which would probably be whatever was required from the employee under the contract and therefore could be as little as one week. But that does need to be checked - though I suspect the employer didn't have an escalating notice period for employees in their written terms and conditions.

Should have made that more clear the employer is giving the notice of redundancy, VR makes no difference.

The 9 weeks statutory notice counts towards service for redundacy even if you agree to shorter notice, so making 10 weeks service for redundancy

shellsuit

Thank you guys for responding.

So, his notice period should be 9 weeks, not 1, meaning by the time that is up, he would be entitled to 10 weeks redundancy pay (for 10 years service)?

I need to get the ball rolling on this one you see, seeing as though my Dad's last day is 'meant' to be Friday.

Should my Dad write back then saying he doesn't agree to what was in the letter, and pointing out what is wrong about it, ie, 9 weeks notice, change of redndancy pay from 9 weeks to 10 weeks and also that it doesn't state other monies owing to him such as holiday pay?

Emmzi

"has to talk to the insolvency people" says to me the VR payments can't be funded from the businesss as they have no money so i think the company is going under and it'll be a state payment?

shellsuit

Emmzi wrote: »

"has to talk to the insolvency people" says to me the VR payments can't be funded from the businesss as they have no money so i think the company is going under and it'll be a state payment?

Yes, looks that way, so obviously the other 3 guys are going to be let go too aren't they.

He'd told my Dad ages ago that he was in trouble and my Dad offered (verbally) to go then, but was told No, because if he was going to get rid of anyone, it would be the youngest member as he would be the cheapest to pay off.

He's treated these workers like crap over the years, so if my Dad's got to go, he and I want to make sure it's all done by the book.

anamenottaken

shellsuit wrote: »

Thank you guys for responding.

So, his notice period should be 9 weeks, not 1, meaning by the time that is up, he would be entitled to 10 weeks redundancy pay (for 10 years service)?

I need to get the ball rolling on this one you see, seeing as though my Dad's last day is 'meant' to be Friday.

Should my Dad write back then saying he doesn't agree to what was in the letter, and pointing out what is wrong about it, ie, 9 weeks notice, change of redndancy pay from 9 weeks to 10 weeks and also that it doesn't state other monies owing to him such as holiday pay?

Nine weeks notice leading to ten years service. Whether that is ten weeks redundancy pay depends on your dad's age.

If he is 42 or older at the time the redundancy is effective (his leaving date), the statutory scheme is more.

Then again, if he is under 32 it could be less!

I wouldn't necessarily mention the holiday pay now. In any case they can say he takes that holiday during his notice period.

McKneff

If he is over 41 statutory redundancy pay is 1.5 weeks for every year of service and pro rata.