Redundancy and 'Garden Leave' or New Job? Is it fair?

janaru

Our company announced that it was closing down last week and everyone is to be made redundant.
I was offered a job by another company the next day, but explained my situation - because over 100 people are being made redundant there is to be a 90 day 'consultation period' before any redundancies can be made. The upshot of this is that by the end of July everyone will be at home on 'garden leave' and the 'Consulation Period' will finish some time in October (then I'll have 4 weeks notice).

The new company will wait for me until September (when I'll be on garden leave), but my current company will only give me my redundancy money if I sit on my bum until November (at which time it will be more difficult for me to get a job!).

Is there anything I can do? It seems unfair that the company is effectively stopping me from finding other employment!

Conor_3

Unless there's a clause in your contract of employment, there's nothing legal to prevent you from having two jobs.

Personally unless the redundancy was life changing and you're getting paid whilst being off, I'd take the job.

janaru

The new job is on about 12% more, but I'd get about 4 months wages tax free if I stayed for the redundancy (which is a lot of money to me).

I've read my contract and there isn't anything that precludes me from working for another company...but my manager says that it's not allowed (but they also say that "the company's No. 1. priority is finding new employment" for us!
)

The new company says that they could pay me on the emergency tax code until I get my P45.

I'm pretty peeved about the situation now

HappyG1rl

Have you actually had anything in writing from your company giving you notice of termination on the grounds of redundancy?

or anything in writing at all?

I personally would take the other job (as an additional job) and go on emergency tax code.

janaru

Not had anything in writing yet, and we haven't actually started the consultation period. I expect we will get something within the next 2 weeks.

I think I will be able to get another job in November based upon my skill set, but I'm just worried that being seen to have done nothing for 3 months will count against me.

Just read my contract and it says that I can have another job as long as it doesn't interfere with my duties (and it's not with a competitor - which it wouldn't be). I asked my manager about this and he said that there might be the expectation that I could be called back in to work whilst on garden leave (the building will be shut down by then probably!), so I might not be able to take the job.

V. frustrating!!

jacquij123

If you're at home does your current company need to know that you are working for someone else? What are the chances of them calling you back in and if they do what will they do if you don't turn up? Sack you? Surely the time that that would take would take you up to the redundancy. I wouldn't say any more to you current boss as it's not really anything to do with him.

CFC

janaru wrote: »

Our company announced that it was closing down last week and everyone is to be made redundant.
I was offered a job by another company the next day, but explained my situation - because over 100 people are being made redundant there is to be a 90 day 'consultation period' before any redundancies can be made. The upshot of this is that by the end of July everyone will be at home on 'garden leave' and the 'Consulation Period' will finish some time in October (then I'll have 4 weeks notice).

The new company will wait for me until September (when I'll be on garden leave), but my current company will only give me my redundancy money if I sit on my bum until November (at which time it will be more difficult for me to get a job!).

Is there anything I can do? It seems unfair that the company is effectively stopping me from finding other employment!

Why do you feel the company is being unfair? You have a choice of continuing your current employment until you are made redundant or leaving voluntarily to take up new employment. What you mean is that it's not the way you really want it to be, which is a nice new job and a little windfall too...it's not actually unfair, is it? Just bad timing!

Emmzi

Redundancy payments are not a 'punishment' to the company for laying you off, nor 'compensation' to you for being laid off.

They are designed, in the eyes of the law, to tide you over until you get a new job.

I don't know if thinking about it that way helps any?

tigtag02

I agree with the previous two posters - there is nothing unfair about the situation, its just the way the cookie crumbles.

You cant have it both ways, as with most things in life.

Regards
tigtag

flashnazia

There is a way you can leave if your employer accepts 'counter notice'. It's a bit complicated so I have copied the section below.

If this does not work you may be able to twist your employer's arm by getting them to give you Pay in Lieu of Notice. This is entirely different from garden leave and is better for employer as it means the contract ends immediately when you are due to start your notice. Employer does not have to pay NI and holiday pay accrual during that notice period as your contract has ended and you get a tax free lump sum.


IF YOU LEAVE DURING YOUR REDUNDANCY NOTICE PERIOD
Notice Pay
If you are working your notice and you leave to get another job, you will lose your notice
pay for the period after which you leave (but you will of course be earning in your new
job).
Redundancy pay
You should not lose your redundancy compensation payment provided:
• you tell your employer that you are leaving early in writing - this is, you ‘give
counter-notice’. See Sample letter 3 on page 3. 22 of this pack.
• your employer has given you specific notice of redundancy (not just a general
warning that redundancies may be possible) and
• you are in the `obligatory‘ notice period - that is, either your contractual or the
statutory period, whichever is the longer. If your employer has given you more
notice than this, you cannot claim your redundancy payment if you leave before
this `obligatory ‘ period.
For instance, your contract may say that you should be given 3 months notice of
redundancy. However, your employer may actually give you 5 months notice. You would
not be in your `obligatory’ notice period for the first 2 months; if you left to get another
job in that period you would not be legally entitled to your redundancy payment.
However, if you could delay starting your new job so that you could hand your employer
your `counter-notice ‘ 3 months before your redundant job is due to end, you should still
get your redundancy payment (but see below). For how much notice you would need to
give your employer at that point, see page 3.2 of this pack.
Counter notice from your employer
You may however also risk losing some or all of your redundancy payment if your
employer then serves you with further counter-notice insisting that you work out your
original redundancy notice period.

CFC

This won't work because the redundancy consultation period has not ended yet. Therefore nobody is on notice yet at all ...the notice period will not start until October, and the other company wants the OP in September!