Redundancy and Notice in Lieu Payback???

gremola

HI there

My partner was made redundant after 12 years of working with Company A. The redundancy started last Monday. He recieved 3 months pay c. £4000 and was due to receive another c £4,000 redundancy in a cheque today or tomorrow. Last Wednesday (3 days into his redundancy) he was offered a different job within Company A. He started this morning and has been told he will have to pay the monies back. Is this legal? He was without work for one week. Should he at least be paid for that. If this is legal can he pay the money back in instalments? His pay pattern is one months in arrears which means two months with no incoming money.

Any help would be great!

getmore4less

Check the terms of the redundancy and the terms of the new offer.

Did he work monday last week?

If he did then the break in employment is not long enough to create a break in continuous employment, needs to be a full week starting on a sat.

If he had trhe full week off then technicaly he was properly redundant. so unless the job was clearly avaialbel before the redundancy and was a suitable alternative then HMRC may not be interested(but could)

If the terms of the redundancy(or in company policies) or the terms of the reemployment(they should have said before he accepted and started) then they can ask for the money back BUT

He should be reinstated back to the possition as if he had not left.

Service is continous so any future redundancy take the previous 12 years into account, pay cycle stays the same and they should pay for the week off but I don't think they have to.




By the way if he worked month in arreers they seen to have not paid him enough when leaving PILON should be 12 weeks pay + any arreers money + holidays.
(what happened to the pay for outstanding holidays)

There definately should not be a pay timing ssue if the old job was on the same pay terms(month arreers).

Bottom line AIUI(so wait for a second opinion) is does he want the job if yes make surethat you are back as if he never lefy(except in a new job). if not leave and keep the money.

gremola

Sorry ... I meant to say his new pay pattern will be one month in arrears - his old pattern was weekly.

harz99

gremola wrote: »

Sorry ... I meant to say his new pay pattern will be one month in arrears - his old pattern was weekly.

Many larger companies have a transitional arrangement to deal with the problems caused by employees moving from weekly to 4 weekly or monthly pay. If he is to be fully reinstated, which seems to be the case if they are asking for the pay in lieu of notice money back, such a transitional arrangement should apply.

Check with the HR or ER department(s).

an9i77

I'm pretty sure he will have to pay the money back, although it would seem reasonable that he keep a percentage, equivalent to one week's pay (as he was not working for one week).
Will the company give him continuity of service or will he have to start his service over again?
As redundancy money is primarily to compensate for future loss of earnings it would seem only fair that he pay this back, less a week when he was not working.

getmore4less

gremola wrote: »

Sorry ... I meant to say his new pay pattern will be one month in arrears - his old pattern was weekly.

Are you sure it is a full month in areers and not just end of month(which is quite common).

Check the continuity that is the most important terms you need to clarify.


I would then look at asking for a phased pay back to cover the short fall due to the change in pay terms.

So assuming that the month arreers is the new terms
You got 3 months so say give 1/2 back imediately that gives about 6 weeks to cover 8 and 25% reduction for the next 6 months to cover the rest
If it is only end of month pay then say 9weeks back leaving 3 to cover 4 and 25% reduction for 3 months to cover the rest.

or something like that.

He really should have clarified all this last week when there was the job offer before accepting