Enhanced redundancy and notice pay

Befuddled31

Hello all,

If this has been covered anywhere else, I apologise for the repetition but I couldn't find it!

My company is going through a period of transition and will either be sold or wound down very soon. As a result, they have decided that they need to retain key staff (myself being one) and also offer enhanced redundancy (should the worst come to the worst) on the same agreement. The amounts are the same, and they will pay the tax, NI etc on the retention payment. The retention payment will be due at the end of 2012.

As part of the agreement, I would be required to offer the company an extra 8 weeks notice should I resign and would then be entitled to nothing.

My SRP is £4,200 as I have been at the company for 12 years since I was 19 and as a result, the company is required to give me 12 weeks notice should they make me redundant. However, I am confused as to the wording... It says that my ERP would be £x (which includes SRP entitlement if applicable) and is in addition to any rights due under the term of your contract.

Does this cover my notice pay? Ie, would I receive my ERP and ALSO my 12 weeks salary on top? I wouldn't put it past my employers to try and so something like this... after all, if it's sold, then why would they care about me 12 months down the line..?!

Any advice is greatly appreciated

Befuddled

getmore4less

Notice should still be paid.

Puting retention bonuses just makes the company more expensive o run for a buyer.

If the company is wound up and there is no money the enhanced redundancy and retention will not happen.

Acc72

getmore4less wrote: »

If the company is wound up and there is no money the enhanced redundancy and retention will not happen.

This is an interesting point.

The company could promise you whatever it/you likes, but if they are not in a position to actually make the payment then in reality there is very little that you could do.

If I were you I would still be actively looking for a new job. The next dilema will be that if you are offered a job and are still hoping to receive your "bonus" from your current employer.

Befuddled31

Hi Getmore4less and Acc72, many thanks for your help and very prompt responses!
If not sold, my company would only be wound up as a matter of course rather than going into administration (they don't want to continue their presence in the UK as it doesn't offer the shareholders an adequate ROI) - we have already made our provision for the ERP and we are a subsidiary of a large foreign company who will not go bust.
I would have thought that I would receive my notice pay as well as my ERP however I'd heard conflicting opinions on this and thought I'd put it out there!
Following on, does anyone know how usual it is to put ERP and a retention payment onto the same contract? And how does this compare to a compromise agreement (for which my company would be required to provide independent legal advice, or payment for independent legal advice).
Thanks
Not so Befuddled31

getmore4less

Is it worth looking at an employee buyout.
If a wind up is a serious option giving the business to the employees might be cheaper.


I dont see contractual ERP and retension bonus neing atractive to a potential buyer.

Befuddled31

getmore4less wrote: »

Is it worth looking at an employee buyout.
If a wind up is a serious option giving the business to the employees might be cheaper.


I dont see contractual ERP and retension bonus neing atractive to a potential buyer.

No can do as we are a bank and the only probable purchasers will be non-banks (primarilly for the lbanking licence). The licence itself would cost a minimum of £2m and very much unaffordable for the staff!!
The reason the retention is being put in place is because they want to make it more attractive for a potential buyer - I would be extending my notice period to the bank to 10 weeks from 4 so they would have more continuity.