Working for the same employer after being made redundent

robeleth

Hi, I am being made redundent at a subsiduary of a large multi-national company. I have been offered a position at a different section of the company elsewhere in the UK. My question is - can I take my redundancy payment and join as a new starter at the other subsuduary legally? If so, do I have to wait a certain length of time to cover any tax obligations arising from my payment?

anamenottaken

robeleth wrote: »

Hi, I am being made redundent at a subsiduary of a large multi-national company. I have been offered a position at a different section of the company elsewhere in the UK. My question is - can I take my redundancy payment and join as a new starter at the other subsuduary legally? If so, do I have to wait a certain length of time to cover any tax obligations arising from my payment?

Is the offer of a position elsewhere in the UK one which arose because of your pending redundancy? That is, does the dismissing company know of the offer? Is it considered a suitable alternative to redundancy?

If it is an offer to avoid redundancy then taking redundancy and then deciding to take up the offer could well lead to problems as it would appear you had not been properly dismissed on the grounds of redundancy. Therefore the lump sum "redundancy" payment would no longer have any tax-free element.

If the offer of the other job is because you simply applied for it, if you received an enhanced redundancy package from your existing employer (that is it pays more than the basic state scheme would permit), then you need to look at the rules of the company scheme to see whether it covers moving to a sister subsidiary.

ALIBOBSY

Most place-certainly public sector, have a period you have to be not working for "them" or another gov dept, otherwise they can/may claim the redundancy payment back. I would suspect your company would have the same-there will likely be a clause somewhere in the redundancy agreement.

Ali x

patman99

The best one I came across was a guy on a building site who was made redundant after 20 years with the same company.
As he was walking out of the office with his redundancy payment he bumped into one of the area managers he knew well. The AM offered him a new job starting the following Monday. 3 years on, he got made redundant again & got the full wack again as it was counted as continuous service.

robeleth

Yes, the "new" job would be as a result of the redundancy and the previous employer knew about this. It is not an alternative offer but is under the same overall company although in an entirely seperate business unit. I have been told that a precedent of leaving a gap of 4 weeks is sufficient a break but i cannot get a definitive answer.
There is a clause in the "old" company policy stating you cannot return once made redundent but there is nothing in the "new" company stating this and they have re-hired after 4 weeks previously.
The irony is that i cannot afford to relocate for the new job without the redundancy payment!

patman99

From memory, it used to be the Law that any break under 12 weeks would be considered a continuation of service.
Not sure if it is still the same today as Laws seem to change on a regular basis.

marybelle01

The break in continuous employment is one week including two Saturdays. So if made redundant you can return to the same employer (unless they say otherwise, in which case it is up to them - some employers won't ever take back someone they have made redundant) provided there is a break in service of one week or more (unless the employer has different rules).

antrobus

robeleth wrote: »

.... If so, do I have to wait a certain length of time to cover any tax obligations arising from my payment?

Provided that a redundancy is genuine (see EIM13800), subsequent re-engagement by the same employer or an associated employer does not normally affect the treatment of a redundancy payment.

http://www.hmrc.gov.uk/manuals/eimanual/eim13810.htm

marybelle01

antrobus wrote: »

Provided that a redundancy is genuine (see EIM13800), subsequent re-engagement by the same employer or an associated employer does not normally affect the treatment of a redundancy payment.

http://www.hmrc.gov.uk/manuals/eimanual/eim13810.htm

Yes, but that is tax law, and not employment law. If there is no break in employment between the two jobs then continuous service is preserved and if continuous service is preserved then no redundancy payment is due - because the continuous service preserves the years of service for future potential redundancy (and, of course, protects all employment rights accrued). The quote refers to "subsequent" re-engagement - not continuous employment. To break continuous employment there must be a gap of a week or more: http://www.rhhr.com/2/continuous-employment-and-breaks-service-0