Is this exploitation of the statutory minimum redundancy rules?

LeCoop

I have just been made redundant from a fairly well paid job after 30+ years of continuous service, inc TUPE transfer a few years ago.
My previous employer applied generous terms for redundancy (one week full pay for every year served, no caps; always have and they still do so today)
The company to which I was transferred have interpreted this as 'honouring' my length of service, but applying a 20yr cap and a salary cap, in line with 'government directives'.
They appear to be using the statutuory minimum redundancy legislation designed by the government to protect employees from unscrupulous employers as a means to short-change me.
Their offer is less than half of the figure I believed I would be entitled to under TUPE legislation.
Can they do this?

Linton

LeCoop wrote: »

I have just been made redundant from a fairly well paid job after 30+ years of continuous service, inc TUPE transfer a few years ago.
My previous employer applied generous terms for redundancy (one week full pay for every year served, no caps; always have and they still do so today)
The company to which I was transferred have interpreted this as 'honouring' my length of service, but applying a 20yr cap and a salary cap, in line with 'government directives'.
They appear to be using the statutuory minimum redundancy legislation designed by the government to protect employees from unscrupulous employers as a means to short-change me.
Their offer is less than half of the figure I believed I would be entitled to under TUPE legislation.
Can they do this?

Were the former employers redundancy terms in your contract or were they just the normal practice? If not in your contract then any employer could adopt different redundancy benefits at any time. When I took voluntary redundancy the terms on offer were half those that had been offered previously.

getmore4less

You will have to fight it, if there are other get them involved, get union help or try your house insurance for employment cover.

It help is the previous terms were well documented and even better if they were used a few time and negotiated by a collective agreement say with a union oit became contractual through custom and practice.

it is not uknown for companies to back down if there is enough evidence to make a case and you are serious about going through it.

I used to have a link to a ET case where the employees won their old terms but you will have to search I don't have it handy.

LeCoop

My contract of employment has not changed in content and does not explicitly state my redundancy terms, other than reference to the staff handbook.
In the past hour, my former employer has sent me an extract from the handbook in force at the time of my transfer, which unequivocally states that for anyone with my particular employment history, it "offers an improvement in the statutory provisions in terms of redundancy pay"

It then goes on to say

"In addition, the following rules apply:-

· there is no maximum imposed on weekly salary reckonable for the calculation of redundancy pay
· there is no maximum imposed on the number of years’ service which may be reckonable for redundancy purposes"

They will confirm that they have applied this rule consistently within their own organisation since I transferred.

Linton

Some thoughts..

Looks like you have the obvious "get-outs" for your new employer covered so why not ask them to explain to you why the TUPE rules should not apply in your case.

Perhaps it would be worth first making sure you are on firm ground by getting external advice as you dont want to antagonise them if it turns out they can do whatever they want. ACAS have a helpline.

Gentoo365

In the situation I am in (possible redundancy/TUPE) the HR dept. seem to be of the opinion that redundancy terms are a 'benefit' and hence can be set by the new employer.

In fact annoyingly it seems that almost everything seems to be considered a 'benefit' rather than a contractual obligation.

Ewarwoowar2

Contractual terms transfer. Therefore, if it said in your contract of employment you are entitled to uncapped redundancy pay, your new employer would be force to pay you the uncapped amount.

Benefits in a handbook are borderline contractual promises. The handbook may say something like "the policies in this handbook non-contractual and can be changed at anytime by the company". This would make the benefits in the handbook less likely to be binding on the new employer.

You could argue that the uncapped redundancy right has become a contractual right due to custom and practice i.e. the old company would always pay redundancy uncapped so it's become a contractual right over time.

I would get together with the other employees in a similar situation as yourself (perhaps with a trade union rep if you have one). Argue your case with the new company. If it refuses to budge, go see a solicitor. Hopefully one of you will have home contents insurance that covers the cost of employment tribunal claims.

You haven't got much to lose.