Redundancy post-TUPE, retention payment and PILON query

duggyfresh

Hi, all.

My employer has lost a contract as their customer is relocating 200 miles away. A new company in the new location has the contract and I have been told I will be transferred over to them under TUPE. My last day with the old company will be 21st January 2013 and I will become an employee of the new company on 22nd January.

Prior to them losing the contract, but after they knew about the relocation, they offered me (in writing) SRP of 12.5 weeks salary and a retention payment of 12.5 weeks salary to stay to the end of the contract. At that time, the contract was due to end on April 1st 2013.

It has been suggested to me that, as I would not be prepared to relocate to the new facility, that the new company would make me redundant on the 22nd January. I have had no communication from the new company at all but they are coming to see me on the 4th December.

At a meeting with our HR people, they announced that my PILON (to be paid by the new company) was included in the retention payment and no additional PILON would be paid. My question, therefore, is, "Are they correct or should I be entitled to PILON from 22nd January in addition to the retention payment and SRP?"

Regards and thanks in advance,
Duggy.

Ewarwoowar2

It might help to simplify matters if I set out how the situation operates inlaw and you come back with any questions:

1. If you do nothing, your contract of employment will transfer to the newsupplier. All your employment rights will be preserved. If, after you transfer,the new company finds itself with too many employees, there's a redundancysituation. The employees transferring across should be treated equally with theexisting employees i.e. a pool of people at risk of redundancy should beidentified, selection for redundancy made from that pool and offered anysuitable alternative employment with the new company. The people selected forredundancy should be paid notice (worked or in lieu) plus redundancy pay.

2. If you object in writing to the transfer, your employment will end.Legally, you will not be entitled to a redundancy payment or a payment in lieuof notice.

3. From the information in your post, it would seem that your currentemployer has made you a offer of a fixed term job with them. If that ends, youmay be entitled to a redundancy payment and you will be entitled to notice, butthat notice could be given you so work your notice and it runs out on 1 April2013.

It's likely that dismissal on 22 January for redundancy would be unfair ashow can the new company have undergone a fair selection procedure in one day?

duggyfresh

Thank you for the quick response!

I understand everything you have posted.

My current company cannot make me redundant at all as I am being transferred under TUPE. The new company cannot make me redundant until 22nd January as I do not become their employee until then. I already know I cannot accept any position offered as the location is so far away.

The only question for me is, having been offered SRP and a retention payment to stay until the end of the contract, can they then terminate my employment and say that the PILON is already included in the retention payment, thereby negating the retention payment?

Thanks in advance,
Duggy.

getmore4less

What are the terms of the retention bonus.


How many years have you worked there and what is your contractual notice(by employer).

Statutory notice is capped at 12 weeks.

If they don't intend making the offer at the new location a suitable alternative(contract may allow for this) then the new employer needs to pay redunancy and notice

The retention bonus will depend on what the terms of the bonus were



This is redundancy situation since the job has gone at the current location, there is not a suitable alternative since you don't want to reloacate and presumably they are not going to say the relocated job is suitable.

There is no requirement to pool unless people want to relocate and there would be a surpluss of employees at the new location.