Redundant - about to be offered lower-paid post with same company

MatFish
MatFish Posts: 2 Newbie
edited 22 March 2014 at 10:47AM in Redundancy & redundancy planning
My notice period for redundancy elapsed yesterday. The company have invited me back next week to discuss and consider a job which is very similar to the job I was doing - but at 25% less pay! I have had no actual offer of this 'new' job yet, but have been told that if they decide to offer it to me and I accept, then I will forfeit my redundancy payment - I suspect they may even try to get me to sign a contract agreeing to forfeit my redundancy money.

Are they legally entitled to do this AFTER my notice period has elapsed? If they had offered me alternative employment a week ago - i.e when I was technically still employed by them, then under Employment Law I would have been legally entitled to a 4 week trial period during which I could have chosen to terminate the contract, but would still have kept my redundancy payment. It seems to me that the company is simply trying to get around the legislation to minimise the cost to them and that this must be illegal in some way. It might even suggest that the redundancy was false? Does anyone out there have any knowledge of the law on this point? I would be reluctant to sign any contract forfeiting my right to redundancy - but if I don't, then they won't re-employ me. I feel like I'm being unfairly exploited!

This smacks of a cynical cost cutting exercise at my expense and others in the company in the same position.

I would very grateful for any advice members can offer and what I should do. But I really need the job and the redundancy money.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Was the redundancy enhanced.
    They can make up any rules they like for the enhanced part.

    Ask them why the job has suddenly materialized as it seems to be the same job you were doing that was redundant.

    If they had offered it as a potentially suitable alternative would you have taken it.
  • MatFish
    MatFish Posts: 2 Newbie
    edited 22 March 2014 at 12:45PM
    Thanks for replying getmore4less. No - it wasn't enhanced. I'll be receiving the maximum 3 months approx worth of pay which is due statutorily for compulsory redundancy.

    They are arguing it's a different job. If they'd offered it as a potentially suitable alternative whilst I was still contracted, then I might have taken it - but then at least I could have claimed the 28 day trial period to see if it worked out, which includes testing if the 25% pay cut actually does prove copeable for me and my family. This is because in that situation, employment law prescribes that I can choose to terminate the contract and reclaim the redundancy money, if it didn't work out as suitable alternative employment, which would then protect any Jobseekers allowance claim that I can go on to make. Here the company are stacking all the cards in their favour; it seems like sleight of hand to circumvent the purpose of employment regulations. Here there isn't a reasonable balance between the rights of both employer and employee!
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    AIUI, They can't take statutory redundancy back if you were in a genuine redundancy situation and this job is available after the break in contract is long enough to break continuity of employment.

    Beware the you take the job with continuity of employment and then you just get a lower package depends if you are under or over the cap.

    I think the 4 weeks trial could have been done during the notice period so you may not have gained extra time/money anyway.

    if you want the job check the rules for statutory redundancy carefully and make sure you leave a big enough gap.

    Are you sure they got the redundancy right.
    max is 20 weeks(capped) based on 20 years service enhanced to 30 weeks if over 41 for all of them.

    Notice is 1 week per year.
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