Redundancy: Fair process?

NeverEnough

I was told in October that my post was being made redundant for financial reasons (ie company can't afford my salary). The "meeting" was about 10 minutes, wasn't a consultation, and I was told of the situation. I'm in a senior position and have been with the company for a year, having been head hunted for the position. During the brief meeting I advised the director of certain statutory functions I fill which no-one else in the company is qualified to do - I was asked to please keep quiet about the conversation we had had and that they would need to consider what to do next and would meet me a few days later.

At that next meeting, I was asked if I would continue to fulfill the statutory functions for X period after leaving the company under an arrangement to be agreed between us. Plus I was asked to remain until end November instead of end October to complete some tasks which no-one else was qualified to do. In addition to whatever "arrangement" we make, I was told I would get a "severance package" subject to a "compromise agreement" of three months salary plus all the additional expenses I normally get plus payment for annual leave which was still due to me. It is normal practice in my profession to be given, or to give, 3 months notice.

It is almost the end of November now and as yet I have seen nothing in writing as to what I am to be offered. I cannot start working in December either freelance or for another employer, as my job requires an Enhanced CRB clearance and my current one is just over a year old - freelancers in my profession need CRB disclosures under a year old, salaried people don't need them renewed as frequently.

I am told by people I know that I am being very unfairly treated by the company - there was absolutely no "consultation" about my redundancy - I am not really redundant as the role actually has to be filled by someone with the same qualifications and this is required by law, but the company don't want to pay the market related price for this, so is my role really redundant? Secondly, do I not have the right, before termination of my employment, to be given the severance contract details to see if I do or do not agree with the offer? An employment law specialist solicitor of my choice will be looking at the agreement once it arrives, with the company contributing £250 to this service. Do I not have the right to have reasonable time in which to peruse an agreement before the termination takes effect?
I cannot start work in my profession with any other company or as a private contractor on 1 December due to not having a new CRB disclosure - this could of course take anything from a few weeks to many months to arrive once applied for. Effectively, I am unemployable until I get a new CRB Disclosure. If I was going to give notice myself, I would have applied for a CRB disclosure at the time of giving notice so I had at least 3 months in hand.

Does anyone have any advice or opinions on my situation? I am extremely stressed by it all and feeling very vulnerable - we don't have much, savings wise, due to various life circumstances in recent years and there are the usual obligations of the mortgage etc. and I am really worried that if agreement is not reached soon, I won't get any payment for many months waiting for resolution. I will get my usual salary on 30 November so will be ok for the next month, financially.

getmore4less

I was asked if I would continue to fulfill the statutory functions for X period after leaving the company under an arrangement to be agreed between us

Charge your current salary for this service.

Whats to stop you getting a CRB check now?


What is your contractual notice?

Butti

I suspect there are few employment lawyers reading this thread. I think you need good legal advice through a solicitor. If I were managing this company I would be worried about meeting my statutory requirements without you.

My advice would be to go to Citizen's Advice and see if they can arrange for you to see someone. I'm assuming you're not in a union.

B

Jarndyce

NeverEnough wrote: »

I was told in October that my post was being made redundant for financial reasons (ie company can't afford my salary). The "meeting" was about 10 minutes, wasn't a consultation, and I was told of the situation. I'm in a senior position and have been with the company for a year, having been head hunted for the position. During the brief meeting I advised the director of certain statutory functions I fill which no-one else in the company is qualified to do - I was asked to please keep quiet about the conversation we had had and that they would need to consider what to do next and would meet me a few days later.

Ok so with only a year's service you are not entitled to a redundancy payment - they can get rid of you for nothing if there is a genuine redundancy situation.

At that next meeting, I was asked if I would continue to fulfill the statutory functions for X period after leaving the company under an arrangement to be agreed between us. Plus I was asked to remain until end November instead of end October to complete some tasks which no-one else was qualified to do. In addition to whatever "arrangement" we make, I was told I would get a "severance package" subject to a "compromise agreement" of three months salary plus all the additional expenses I normally get plus payment for annual leave which was still due to me.

This is clearly not a redundancy situation then (luckily for you as you would get nothing apart from your contractual notice pay). You are agreeing to go on a compromise agreement.

It is normal practice in my profession to be given, or to give, 3 months notice.

yes but what notice did your contract require them to give you?

It is almost the end of November now and as yet I have seen nothing in writing as to what I am to be offered. I cannot start working in December either freelance or for another employer, as my job requires an Enhanced CRB clearance and my current one is just over a year old - freelancers in my profession need CRB disclosures under a year old, salaried people don't need them renewed as frequently.

then you continue to be employed until such time as they dismiss you or you sign a compromise agreement.

I am told by people I know that I am being very unfairly treated by the company - there was absolutely no "consultation" about my redundancy

There is no redundancy. Having agreed to go on a compromise agreement, they do not have to consult you about a redundancy as it no longer applies.

- I am not really redundant

correct.

as the role actually has to be filled by someone with the same qualifications and this is required by law,

no it isn't

but the company don't want to pay the market related price for this, so is my role really redundant?

No it isn't

Secondly, do I not have the right, before termination of my employment, to be given the severance contract details to see if I do or do not agree with the offer?

Yes you do.

An employment law specialist solicitor of my choice will be looking at the agreement once it arrives, with the company contributing £250 to this service. Do I not have the right to have reasonable time in which to peruse an agreement before the termination takes effect?

yes they should allow reasonable time for this to happen


I cannot start work in my profession with any other company or as a private contractor on 1 December due to not having a new CRB disclosure - this could of course take anything from a few weeks to many months to arrive once applied for. Effectively, I am unemployable until I get a new CRB Disclosure. If I was going to give notice myself, I would have applied for a CRB disclosure at the time of giving notice so I had at least 3 months in hand.

Does anyone have any advice or opinions on my situation? I am extremely stressed by it all and feeling very vulnerable - we don't have much, savings wise, due to various life circumstances in recent years and there are the usual obligations of the mortgage etc. and I am really worried that if agreement is not reached soon, I won't get any payment for many months waiting for resolution. I will get my usual salary on 30 November so will be ok for the next month, financially.

---

NeverEnough

Thanks for the advice. Had a meeting today and am awaiting the written offer. CRB request will go in tomorrow, hopefully not take months to get back as that will completely destroy us financially.

getmore4less

How big is the group of people that can provide the regulatory services,
how easy is it to get and keep the relevent certifications,

are you overpriced

Is there is a "club" that protects the value of the service.

How long do they stay in business if they don't have this service in place?

Whats happening about that side of things?

That seems to be the only lever you have.

NeverEnough

Just to answer your queries getmore4less, its a very small group of people countrywide who can provide the service in question: without a person with the qualifications in place, the business should stop trading immediately as it would be illegal to continue without the regulatory individual. No "club" as such, not overpriced, takes many years to get the original qualification, then you have to get to the level of a very senior post - that takes another 10+ years. The official course to provide the functions once you've met all the other criteria is only held once in every 12 months or so and takes 3 days.

We are trying to work it out currently. I appreciate they can't afford someone at my level but it is something they should have thought about more carefully when recruiting me, I didn't force them to offer me the post in the first place!

getmore4less

Sounds like they are stuffed.

This looks like a cost of doing business almost a licence fee.

How were they getting it done before you came along

Can the senior post and the regulatory functons be seperated and provided at lessor cost.

I guess it depends how much time the regulatory part takes and what that bit alone is worth.

Sounds like there is room for a club if there are limited numbers

NeverEnough

That's it in a nutshell, really. The legislation came into effect just after I started in post, so the need for that particular service arose after I had started. The post really had three functions - regulatory, professional and managerial. It could therefore be divided into three parts - only one of which is mandatory. The discussions yesterday were about my filling this regulatory role and reviewing it on a quarterly basis - I can do this without being a fulltime employee of the company purely on a contracted basis, ie billing a retention fee plus additional agreed expenses. They are "reducing it to writing" now so I will review the severance offer plus the other issues as soon as they get it to me - I am due to leave my post next Wednesday so am rather annoyed that its been left to the last minute. At a Directors meeting today (I am on the exec) the finance director told me they would pay my severance package within 24/48 hours of receiving my signed compromise agreement.

As I've only been there 13 months I wouldn't get much "redundancy" pay (not that the role is truly redundant anyway - its a financially driven decision "restructure" I guess they call it ) but the compromise offer isn't generous, or I don't think it is - its the equiv of 3 months worth of my usual salary, car allowance, leave pay due and pension payments. In my profession and level of seniority, 3 months notice is expected. When I started, my offer letter stated I would receive a Contract shortly - it never arrived despite my making several enquiries about it to HR (always some excuse). My offer letter doesn't mention a notice period, but its pretty standard across public and private sectors for 3 months in this position. In May 2011 another exec was "made redundant" under similar terms (compromise agreement) but was given 6 months salary etc. I think I'm being short-changed, but if a long argument starts, I guess I run the risk of payment being delayed for ages, and my ending up in dire financial straits. So probably best to accept the offer and retain the regulatory role for an agreed monthly retainer plus expenses. Its an imperfect world, I guess, but in many ways I'm more fortunate than others.

getmore4less

THis is where a profesional club would be so usefull.

Word goes round and they can't find anyone to take on the role.

You leave on your terms.

I don't see how they can terminate you and not keep paying you until you agree to the exit terms

or they find someone else how likely is that?