Redundancy possibilty

LondonGirl252

Hi all,

I work for an asset management company in London as an accountant (newly qualifed).

We received an email from our CEO on Friday giving a summary of the business' performance - it was mostly positive and the financials look OK but then he ended by warning of headcount reductions as the business is not performing as it should in the current market.

This exact time last year there were redundancies but no warning.

I spoke to my managers who are great and they explained the process. That over the next 2 weeks all departments will be analysed and roles will be identified as being at risk. Those people will be called into a meeting (no prior warning) with HR and their manager and will be told that their role is at risk.

You receive 2 options, to take statutory redundancy and have the option of fighting the decision or to take a monetary offer made to you. I think you have a week to decide.

You are then placed on immediate gardening leave and paid to stay home for your notice period (mine is one month). You can look for and start work during the notice period.

My manager did not know the terms of this years redundancy but did say last year they were offered 4 weeks pay for every year you have worked for the firm (I have been there just over 2 years)

This is all I know and has come from my managers past knowledge rather than from an official communication

The firm is not unionised

Does this all sound pretty normal?

kazmeister

Might be worth having a look at the Acas website as they have a page on redundancy. Your org dont exactly sound like they are going about things the right way, albeit that may have just been the way your manager understood it.
Check out your HR policies and see if they have one for redundancy.

Also have a look at the page on the cipd website although you will have to register (free)

LondonGirl252

kazmeister wrote: »

Might be worth having a look at the Acas website as they have a page on redundancy. Your org dont exactly sound like they are going about things the right way, albeit that may have just been the way your manager understood it.
Check out your HR policies and see if they have one for redundancy.

Also have a look at the page on the cipd website although you will have to register (free)

Thank you I will do this.

Dirk_Gently_2

Sounds to me as though they're doing what lots of companies do which is trying to buy you off - go quietly for a sum better than you're legally entitled to but sign away legal rights (you sign a "compromise agreement" which is a legal agreement whereby you compromise your ability to take legal action against the company for unfair dismissal - or anything else).

From their point of view they pay more but it's a quick and easy transition and they don't have the legal vulnerability of possibly being sued.

People can stay and fight, but if they do they'll only get the statutory redundancy package, which is essentially nothing if you've been there less than 2 years, or 1 week's pay for every year over 2 youv'e been there - capped at £430 a week.

Bigmoney2

LondonGirl252 wrote: »

Hi all,

I work for an asset management company in London as an accountant (newly qualifed).

We received an email from our CEO on Friday giving a summary of the business' performance - it was mostly positive and the financials look OK but then he ended by warning of headcount reductions as the business is not performing as it should in the current market.

This exact time last year there were redundancies but no warning.

I spoke to my managers who are great and they explained the process. That over the next 2 weeks all departments will be analysed and roles will be identified as being at risk. Those people will be called into a meeting (no prior warning) with HR and their manager and will be told that their role is at risk.

You receive 2 options, to take statutory redundancy and have the option of fighting the decision or to take a monetary offer made to you. I think you have a week to decide.

You are then placed on immediate gardening leave and paid to stay home for your notice period (mine is one month). You can look for and start work during the notice period.

My manager did not know the terms of this years redundancy but did say last year they were offered 4 weeks pay for every year you have worked for the firm (I have been there just over 2 years)

This is all I know and has come from my managers past knowledge rather than from an official communication

The firm is not unionised

Does this all sound pretty normal?

They need to identify the number of roles that are at risk.

They can ask for volunteers, and it sounds like they are hoping enough will be swayed by the higher payout to jump.

If not enough volunteer then they will need to make compulsory redundancies and they will need to establish a fair selection criteria for selecting those to made redundant.

I would think about joining a union (assuming not already a member) and contacting CAB/ACAS for advise.

LondonGirl252

Thanks for the info, that is v helpful, will look into those. By next Monday we should know who is at risk then i will have a better idea of what is going on I guess

Thanks all