Made redundant then offered a job with same company.

Hintza

My other half was made redundant yesterday at 2pm she has just checked her emails this morning and another department in the same company has offered her a job; email arrived at 16:57pm.

She had 21 years with the company and got a pretty good redundancy package. Redundancy payment is not due until the end of month pay run. Where does she stand on this one?

Can she have her cake and eat it, in this situation? Anyone we should talk to?

Gordon_Hose

If she accepts the other role in the same company she won't get a redundancy payout. She'll have been redeployed.

So the decision to make is to either, walk away with the big payout and find a job somewhere else, or stay with the same company and forfeit the pay out.

Hintza

That could very well be the easy answer (and no doubt correct) but you could argue her employment had already been terminated before being offered the new role.

There is an added complication in that apparently the new job might entail a different (new) contract of emplyoment which reduces pension and redundancy terms. Which could make it difficult to accept the new position the danger being a year down the line they could still make her redundant again (with less rights).

(Many of the jobs are being transferred offshore and this is an ongoing process)

tanith

Why doesn't she just ask HR ?

Gordon_Hose

Hintza wrote: »

That could very well be the easy answer (and no doubt correct) but you could argue her employment had already been terminated before being offered the new role.

There is an added complication in that apparently the new job might entail a different (new) contract of emplyoment which reduces pension and redundancy terms. Which could make it difficult to accept the new position the danger being a year down the line they could still make her redundant again (with less rights).

(Many of the jobs are being transferred offshore and this is an ongoing process)

Then look at the contract being offered and if it reduces said rights she can walk away with her redundancy package.

Also there will be a clause in her contract that if she accepts redundancy she can't work at the same company for X months. Where I work it's 12 months before I could take another job here when I'm made redundant, if I want to take a job within that period I have to pay back the redundancy package.

Hintza

tanith wrote: »

Why doesn't she just ask HR ?

It looks as if the right hand doesn't know what the left hand is doing and asking will alert them.

Emmzi

Well first of all, she cannot have the new job and the payout. Won't happen, so let go of that idea.

When you say she has been made redundant - well, there are stages in that. What does her email say? If it says for example "we will try and find you suitable alternative employment" then she will need to take the job. (I assume she applied for the job?)

If she has signed all the paperwork already, which seems unlikely, then she may get the payout.

What does she want to happen?

And what did the 2pm email say - all of it?

tanith

Hintza wrote: »

It looks as if the right hand doesn't know what the left hand is doing and asking will alert them.

Well I can't see that it matters as further along the line someone will notice that both things cannot happen... so you'll be no worse off just pushing the proceedings along a little...

mariefab

Can she have her cake and eat it?
She might be able to, it depends on the circumstances surrounding the redundancy.

Did she volunteer for redundancy, or was it compulsory?

Did she work at least 12 weeks notice, or will she receive PILON?

Hintza

Just a quick update she did get her cake and eat it. Redundancy is in the bank and she starts back in May in a new department with a different job title. She will have had a break for over a month. I was worried that without that they could argue it was continuous emplyment.

She will be on a significantly poorer contract in tems of benefits but these seem to be the norm nowadays.

Just to answer a few questions that were posed she worked 24 week notice of a compulsory redundancy.

getmore4less

I was away when this thread was started and some incorrect information was provided.

If there is a break of employment of a week then you can have redundancy payments and restart at the same company without any tax implications as long as the redundancy was genuine, the job went and there was no suitable alternaive.

There is no legal requirement to pay any monwy back or get taxed on the tax free element.


Some companies have increased restrictions but any payback should restore service so it is important to check the terms of any redundancy and any offer of employment.