Advice re redundancy / notice pay

se_yp

Hi,

I was hoping somebody could clear up a question i have

I was recently made redundant (27th may) having worked 5 years, the redundancy was with immediate effect and my P45 was handed to me the same time i was informed.

Under my contract i should be entitled to a notice pay of 5 weeks, at no point previously were we informed of the intention to be made redundant. Effectively the company has broken the contract but instead offered to pay me in leiu.

Unfortunately on the 31st may the company filed for administration and was folded, and then immediately bought out by a new company who will hire the staff that were made redundant again on NEW contracts.

My question - seeing as my previous employer has gone into administration and i have been hired by the new company (as a new empoyee, NOT a transfer) would i still be entitled to notice pay?

I have looked on the internet and asked the administrators themselves and read through the insolvency forms we were given and cant quite get a firm answer on this,

as far as im aware, i am guaranteed to get redundancy pay as worst case this somes from the NI fund, however notice pay would help as after all it is 5 weeks worth of pay

any input much appreciated

thanks

se_yp

Having read around and more importantly on the insolvency website i dug up the following info

If you could have reduced your loss but did not, we may reduce your payment by the value of the
unclaimed benefits or the amount you could have earned from the new job.

The income we take into account during your notice period is:
earnings from new employment;
any state benefits you claimed, or could have claimed, and are entitled to. If you have proof
that you are not entitled to any benefits, we will not make any deductions;
an amount equivalent to basic rate tax, which you would have paid if you had worked your
notice period. This is not an actual tax deduction that is paid over to the tax office. We call this
'notional' tax and it is deducted because you can only receive the amount you would have
earned if you had been allowed to work your notice period.

20. How we work out compensatory notice pay
Your compensation is the number of weeks' statutory notice you were entitled to but did not
receive, multiplied by your actual weekly wage. If you get another job during all or part of this
notice period, we have to deduct any wages you earn. If you do not get another job, you should
claim any state benefits you are entitled to. We have to deduct any state benefits you are entitled
to even if you have not claimed that benefit. We also deduct a notional amount for tax, as you
would have paid this as tax had you received the notice payment as wages. If, after these

deductions

Not 100% clear but going by this i suppose im not entitled to notice pay as i got a job immediately after. However if anyone could offer advice it would be appreciated

McKneff

I think what you have dug up is to do with benefits you might have claimed if you had not been offered another job.

As to your first post, Im fairly sure, if the job is completely new and no different from getting another job up the road, on the Monday after you finished the old one, then yes you are still entitled to notice pay, redundancy pay, any accrued holidays.

Can someone else confirm that please.

se_yp

thanks,

if it helps - the new job i have is actually with the company that has taken over and bought out the previous companies name, certain assets etc, effectively on paper and "officially" yes i have a new job as the previous company is insolvent, however reality is my job is the same, same pay, same desk, same old routine etc etc.

Considering that the administrators will be responsible for payouts re: the redundancy and holidays accrued i was confused. One of my colleagues did speak to one of the guys working for the administrators, his answer was a notice payout is unlikely. However i want to be certain and make sure we're not being "brushed aside".

SarEl

You should actually be asking the administrators about TUPE rights. If you were still within the statutory notice period (or what would have been) - which it appears you were, and the new company has bought the old company intact, TUPE may well apply.