Redundancy and having hours cut before consultation

mama67

My Dh was told verbally a couple of weeks ago that his firm is going to close down and all workers (3 plus boss) will be made redundant at end of Aug. It is a ltd company.

Today DH asked for the dates in writing, (date notice given and final date) the boss said he couldn't do this as they hadn't yet started the consultation process and he is also saying that the end of Aug might be extended to end of Sept but they could be cut to a 3 day week.

How would DH stand for redundancy payout? would it be based on his fulltime wage/statutory amount or the lower 3 day week amount. He has worked there for 11 years.

TIA for any help

getmore4less

What does his contract say about hours, short time working and layoffs(no work for a period). This may make a difference.

If it does allow for this then I think they can use the "weeks pay" as defined in the employment act which will do an averaging over 12 weeks.

If nothing then I think resisting the short time is sensible, they would need to consult and give notice to change.
perhaps even suggest that someone is made redundant immediately to save the time.

Is the firm going to pay the redunacy notice pay or is it going bust?

When did he start, he is allready on 11weeks notice minimum once notice is given you add that for service for redundancy will it get to 12 years?

Notice also that for the end of Aug they are too late to give notice so will have to pay some PILON.

Also once on notice then they are entitiled to full weeks pay(whatever that is determined to be at the time).

mama67

The boss is saying he doesn't think there will be enough to pay all the redundancy.

One has been there 16 years - age 50+, DH 11 years - age 47, and the third 6 years aged 26. The boss is 50+ and bought the company 5 years ago and all were Tuped accross. DH won't reach 12 years until Feb 2013.

For July at least they are still on 5 day week hours and pay, have had that confirmed today.

There is also for DH 2 weeks holiday accrued which he has also been told he will be paid for.

getmore4less

I would be looking very carefully at this situation.

The risk is the owners is just milking what they can and will stop paying at some point.

how viable is the business any chance of it continuing in another form/sold on.

fall back will be the NI fund that pays out when companies go bust.

mama67

From what has been said it would seem that the business will be wound up, and this is the reason for the redundancies.

The boss has said that some of the payout will have to come from the NI fund, as there isn't enough assets etc.