Reduncancy with no offer of pay-off?

sweaty_betty

Hi there - I'm hoping someone can clarify something for me.

The company I work for has lots of different sub-companies, each with their own HR, finance, IT etc departments. It's recently announced that they are going to change to have one large combined department (for each of HR, finance, etc) rather than lots of little ones.

The people in these departments have been told that they are welcome to apply for jobs in the new large departments, but as there are likely to be a number of applicants the chances of getting the jobs aren't great. Also, the new large departments are based 100 miles from the current office, so it's unlikely that many people will want to relocate.

So far there has been no mention of redundancy - they've just been told that they won't have a job from xx date. A lot of these people have worked for the company for over 20 years and although have a lot of experience, have no formal qualifications in each of their specialist areas.

To me this is a classic redundancy situation, there will be no jobs for these people in their current office any more and it is not reasonable to expect them to relocate. Is this right? And if this is the case the company should be offering them some redundancy package, even if it's the statutory minimum - is this right?

TIA

SarEl

sweaty_betty wrote: »

Hi there - I'm hoping someone can clarify something for me.

The company I work for has lots of different sub-companies, each with their own HR, finance, IT etc departments. It's recently announced that they are going to change to have one large combined department (for each of HR, finance, etc) rather than lots of little ones.

The people in these departments have been told that they are welcome to apply for jobs in the new large departments, but as there are likely to be a number of applicants the chances of getting the jobs aren't great. Also, the new large departments are based 100 miles from the current office, so it's unlikely that many people will want to relocate.

So far there has been no mention of redundancy - they've just been told that they won't have a job from xx date. A lot of these people have worked for the company for over 20 years and although have a lot of experience, have no formal qualifications in each of their specialist areas.

To me this is a classic redundancy situation, there will be no jobs for these people in their current office any more and it is not reasonable to expect them to relocate. Is this right? And if this is the case the company should be offering them some redundancy package, even if it's the statutory minimum - is this right?

TIA

Yes.

Does that answer the question? It seems to, but there's an awful lot of text for the question being asked. Were you expecting something else?

sweaty_betty

SarEl wrote: »

Yes.

Does that answer the question? It seems to, but there's an awful lot of text for the question being asked. Were you expecting something else?

Thanks - that's the answer I was hoping for! I was just trying to give plenty of background information so that I didn't miss anything out that may have been important.

I'm guessing that the people involved had better hold tight for the company to offer them redundancy, although I'm not sure when/if that's going to happen without them taking some kind of legal advice/action.

Cheers

Andy_L

Assuming there is no mobility obligation in their contract than relocation is not suitable, although they could choose to voluntarly relocate.
However statuatory redundancy is rather paltry
http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_174330

G51shopaholic

depending on the number of staff there should be a 90 day consultation period.

Relocation to 100 miles away fall outwith the acceptable "relocation" forum ie the company cannot say staff were offered jobs at the "new" HQ.

Redundancy packages are based on length of service but I think the cap is 15 weeks

Best speak to ACCA's re this situation or contact your HR department and find out what's going on from them.

Good luck

TadleyBaggie

Edit: Just realised the previous poster was talking about statuatory redundancy...