Fat Lady Sings

billybraggtastic

I am being made redundant and have 1mths notice. I assume that I will receive written confirmation of this and that my notice will begin from the date of that letter.

However, I started work here on 03/06/09 and my employement will likely cease 31/05/11 - will that constitute 2 yrs continuous employment or does the 3 day gap mean I will only be entitled to 1yrs redundancy?

Also, at my consultation I have been advised that another Company within the Group are considering offering me a position. How might this affect my redundancy entitlement? My employment here will terminate but I may be re-employed by the other Company immediately.

thanksinadvance
bbt

Googlewhacker

the 1 year redundancy unfortunately would be at their disgression as it is only once you have worked 2 years that you get statutory redundancy.

anamenottaken

billybraggtastic wrote: »

I am being made redundant and have 1mths notice. I assume that I will receive written confirmation of this and that my notice will begin from the date of that letter.

However, I started work here on 03/06/09 and my employement will likely cease 31/05/11 - will that constitute 2 yrs continuous employment or does the 3 day gap mean I will only be entitled to 1yrs redundancy?

Also, at my consultation I have been advised that another Company within the Group are considering offering me a position. How might this affect my redundancy entitlement? My employment here will terminate but I may be re-employed by the other Company immediately.

thanksinadvance
bbt

Sounds as though the redundancy notification is not yet firm. If you do not get firm notification until Tuesday, 3 May (ie the next working day after the bank holiday) and your notice period is a month rather than four weeks, then your last day of employment would be Friday, 3 June and you would have two years' service and be entitled to statutory redundancy pay. (A company can pay more than statutory and apply it to a shorter employment period.)

If employed by another company in the group without a gap then your continuous employment should continue from the first job - and no redundancy pay would be due.

billybraggtastic

Thanks for the replies.



In the past few days I have been verbally offered and accepted another position with the sister company referred to above. It was agreed that we would need to determine when I left this role and took up the new position.

Today I have received a letter which confirms that, following my consultation notice,
- I did not dispute the reasons for the redundancy
- that there were no alternative job opportunities
- my position would be made redundant and that my employment would terminate with effect from 06/05/11
- I had 5 days to appeal this decision.

It reads as though I am finished from today but I think I should be working my notice with my employment terminating on 06/06/11 (that takes me exactly to the 2yr mark!). It was stated at the consultation that I would work my notice. Am I confusing the termination date and notice periods?

Should it then not read 'you are being made redundant and that your notice period commences today and your contract of employment will terminate on 06/03/11'

The other thing that has become apparent is that both companies see themselves as seperate entities and both have suggested that I will receive any redundancy monies due to me - which is at odds to the advice above.

anamenottaken

billybraggtastic wrote: »

Thanks for the replies.



In the past few days I have been verbally offered and accepted another position with the sister company referred to above. It was agreed that we would need to determine when I left this role and took up the new position.

Today I have received a letter which confirms that, following my consultation notice,
- I did not dispute the reasons for the redundancy
- that there were no alternative job opportunities
- my position would be made redundant and that my employment would terminate with effect from 06/05/11
- I had 5 days to appeal this decision.

It reads as though I am finished from today but I think I should be working my notice with my employment terminating on 06/06/11 (that takes me exactly to the 2yr mark!). It was stated at the consultation that I would work my notice. Am I confusing the termination date and notice periods?

Should it then not read 'you are being made redundant and that your notice period commences today and your contract of employment will terminate on 06/03/11'

The other thing that has become apparent is that both companies see themselves as seperate entities and both have suggested that I will receive any redundancy monies due to me - which is at odds to the advice above.

Does the letter state anything about redundancy payment? If not and it your employment terminated on 6 May then you would not be entitled to statutory redundancy pay so there would be no "monies due to me".

The two companies may consider themselves to be separate entities - and they are right to do so. However, if they have common ownership (ie both are owned by the same organisation) that should give you continuity of employment if you move directly from one to another. This needs to be sorted out in the written offer you get from the second company. If they don't understand the relationship, they should check with the parent company.

You are being left in limbo - one company dismissing you with no redundancy pay and no written offer from the second or agreement about continuity of employment.

If in doubt, I would refute the termination date so that you are eligible for redundancy pay in the event that everything goes pear-shaped with the second company.

getmore4less

They can terminate you immediately.

but do have to pay your notice(PILON).

The down side is that staturtory notice is 1 week and that is what is used to determine service for statutory redundancy, allthough some companies use full notice and pay out if it takes you over 2 years

BUT,

I would follow up looking for continuity of employment by disputing the notice of redundancy claiming this is a suitable alternative position

Do you actualy agree with the reasons for redundancy?

anamenottaken

getmore4less wrote: »

They can terminate you immediately.

but do have to pay your notice(PILON).

The down side is that staturtory notice is 1 week and that is what is used to determine service for statutory redundancy, allthough some companies use full notice and pay out if it takes you over 2 years

BUT,

I would follow up looking for continuity of employment by disputing the notice of redundancy claiming this is a suitable alternative position

Do you actualy agree with the reasons for redundancy?

First sentence of post #1 says the OP has one month's notice - so I would assume contractually correct. Does legislation relating to redundancy override that? (I'm not saying you are wrong, just didn't know.)

billybraggtastic

Again - thanks for the replies.

I get the feeling that the people dealing with this are not fully aware of what they are doing.

On Friday I spoke to my General Manager and he confirmed that the date in the letter should be taken as the commencement of my notice. I don't doubt that I will be paid for working this period.

Furthermore, payroll were of the opinion that I was not due any redundancy as I had not been here 2yrs. I have pointed out that at the expiry of my notice I will infact have been employed 2yrs and that statutory redundancy should be applied. They are going to look into this.

I am also awaiting my formal offer from the other Company but expect to have it in the next 2 days.

As it stands I don't think I will lose out from the situation and may be able to argue at a later date that I have been continuously employed should I find myself in a situation that I need to.

getmore4less

anamenottaken wrote: »

First sentence of post #1 says the OP has one month's notice - so I would assume contractually correct. Does legislation relating to redundancy override that? (I'm not saying you are wrong, just didn't know.)

Thats how I read the relevent section of the employment act

http://www.legislation.gov.uk/ukpga/1996/18/section/145

Sub section 5 applies when PILON is given.

Employers that don't kow what they are doing might think full notice applies

billybraggtastic

Okay - I am now told that I am to receive 2yrs statutory redundancy. I have also now received the job offer from the other co with a start date of 07/06/11 (the day after my notice period here ends).

The question is - am I storing up a problem? If I accept the redundacy payment will I effectively be wiping the slate clean and accepting that for the first 2yrs of my new employment I have no entitlement to redundancy? If I go down the continuous employment route I would gain the safety net of the 2yrs employment that I have under my belt just now?

Taking the windfall of a redundancy payment just now is the most tempting option owing to other pressures.

LittleVoice

getmore4less wrote: »

Thats how I read the relevent section of the employment act

http://www.legislation.gov.uk/ukpga/1996/18/section/145

Sub section 5 applies when PILON is given.

Employers that don't kow what they are doing might think full notice applies

So contractual notice is later than statutory minimum, so should apply.

If payment is made in lieu of notice it is compensation for not getting proper notice. If proper notice is not given in the case of redundancy it can, as for the OP, have consequences greater than loss of salary (and holiday pay). The OP should ensure full compensation is received.

The OP has confirmed that he is to receive payment equivalent to the two years redundancy pay.