Redundant out of the blue. Help / advice please

canada_calling

I work for a smallish engineering company as a buyer, on Thursday directly after lunch the M.D & production director asked me into the conference room, they said that due to the lack of work or prospects of new work arriving, they then asked me to think of anything else I could take on to to warrant my continued employment (but this would not guarentee further employment). They then asked me to accept voluntary redundancy. they gave me a piece of paper with the statutory redundancy figures on it. They then requested I hand over my keys to the building, switch off my computer & leave the premises and to return next week to tell them if I agree with the amount offered.
It would appear they have not followed any redundancy selection criteria, they have just decided they want me out. Although work has been very quiet for quite some time & I half expected it, it has come as quite some shock, especially the way it has been conducted.
I am 43 years old, married with one child, house paid for, with £50k savings, this might seem a lot, but we have been very careful with money and took oportunities when they rose and these are the benefits.
How much would our savings impact on any benefits I could claim.
Sory this is a long post, but it has all happened very quickly & my employer is expecting me to return and give them an answer this coming week.
all help & advice is welcome. :(:(

ceridwen

1. Maximum amount of capital allowed to be able to get means-tested benefit (ie after the first 6 months of unemployment - assuming you have enough N.I. stamps to qualify) is only £6,000.
By "capital" they mean every bit of money you have - even cash set to one side to pay bills.

2. That was a harsh way to go about things by them. So - did they say what happens if you refuse to get pressurised into "asking" for "voluntary redundancy"? Did they say what the "compulsory redundancy" terms would be? Did they say what the notice period will be?

RuthnJasper

This happened to me once. We were all called in one Friday, at the end of February, at 4.00pm and told that, since 12.01pm we had all been officially redundant!
"Lovely."

How long have you been working there? They should offer you some sort of payout (e.g. a month's salary for every year worked).

Kep smiling - plenty of other worse-off than you (not to be sanctimonius or to belittle your problems).

You will be OK. Look on this not as the unfair ending of a job, but as an opportunity to find something better that you love doing.

Good luck to you and your family. xx

LittleVoice

If you have worked there for two or more years, don't accept if it is just standard statutory redundancy pay.

If they can justify your being made redundant then they would have to pay that any way and pay you your full notice (either have you work it or pay you in lieu). You will also accrue holiday entitlement during your notice period which would be paid when you left if they don't work out they can tell you to take it during that notice period.

If they want you to apply for voluntary redundancy they need to offer more than you would otherwise receive.

canada_calling

I have worked there 11 years 10 months, they have offered 12 weeks at £400.00 + to pay me 11 weeks in lieu of working.
Do I take it that my savings would mean I am not entitled to any benefits???
I think they are also going to try to apply gagging conditions to my redundancy, incase I go to a competitor.

They will also probably ask me to sweep the car park as I leave.....

nearlyrich

You should get contrinbutions based job seekers allowance after you payments in lieu of notice run out but you will not qualify for any means tested benefits with so much in the bank. At least you have some savings to fall back on and no mortgage so although it's a shock you are in a good position to take a step back and think about your next moves. It's amazing how little you can live on when you have to good luck with the job hunt.

anamenottaken

canada_calling wrote: »

I have worked there 11 years 10 months, they have offered 12 weeks at £400.00 + to pay me 11 weeks in lieu of working.
Do I take it that my savings would mean I am not entitled to any benefits???
I think they are also going to try to apply gagging conditions to my redundancy, incase I go to a competitor.

They will also probably ask me to sweep the car park as I leave.....

Comments on the package -

If you have worked there for 11 years 10 months, you would have reached 12 years service by the time your notice would expire. So 12 weeks redundancy pay is the statutory minimum if you are 34 or older. If you will be 42 or older at the termination date then the number of weeks would higher.

£400 is the statutory upper limit. If you earned less than £20,800 a year it would be your actual weekly pay.

Eleven weeks notice is your current entitlement. So they have that right.

Look at what your holiday entitlement would be up to the date of termination (11 weeks from the date they give you notice so likely to be 19 July 2011 or later).

If they try to impose conditions which restrict your ability to find work, then you want to ask for payment to compensate you. You are not resigning they are attempting to dismiss you. If they put this into a compromise agreement, it needs to be checked over by an independent lawyer who advises you on the implications and the employer has to pay their (reasonable) fee.

canada_calling

anamenottaken wrote: »

Comments on the package -

If you have worked there for 11 years 10 months, you would have reached 12 years service by the time your notice would expire. So 12 weeks redundancy pay is the statutory minimum if you are 34 or older. If you will be 42 or older at the termination date then the number of weeks would higher.

£400 is the statutory upper limit. If you earned less than £20,800 a year it would be your actual weekly pay.

Eleven weeks notice is your current entitlement. So they have that right.

Look at what your holiday entitlement would be up to the date of termination (11 weeks from the date they give you notice so likely to be 19 July 2011 or later).

If they try to impose conditions which restrict your ability to find work, then you want to ask for payment to compensate you. You are not resigning they are attempting to dismiss you. If they put this into a compromise agreement, it needs to be checked over by an independent lawyer who advises you on the implications and the employer has to pay their (reasonable) fee.

I am & will be 43 at the end of my notice period so I think it should be 13 weeks pay. Still feel very angry over the whole situation, dont know whether to take the money & run or hold out for more.

RuthnJasper

canada_calling wrote: »

I am & will be 43 at the end of my notice period so I think it should be 13 weeks pay. Still feel very angry over the whole situation, dont know whether to take the money & run or hold out for more.

If it were me, I would take the money and get out. No sense in prolonging the agony and increasing the hurt feelings. The sooner you're out, the sooner you can start getting on with the next phase in your life. But that's just me...

Lots of luck. xx

canada_calling

RuthnJasper wrote: »

If it were me, I would take the money and get out. No sense in prolonging the agony and increasing the hurt feelings. The sooner you're out, the sooner you can start getting on with the next phase in your life. But that's just me...

Lots of luck. xx

Yes I think that is probably he best route forward.

Ad astra per aspera

RuthnJasper

canada_calling wrote: »

Yes I think that is probably he best route forward.

Ad astra per aspera

Yes - I know that, when it happened to me, I tried stringing things out for a bit more. As soon as I was out of the door for the final time I wondered why on Earth I'd bothered.

LOTS of luck - hope you go on to find something that you enjoy doing. x:)