Redundancy Options?

Bosun

I have been employed in a sales position for the last few years for an organisation based abroad and I am currently the only UK employee. Business is not good and consequently I am of the opinion that there is a strong possibility that I will be made redundant at some in the near future unless sales pick up dramatically, which I feel is unlikely.

I am contemplating when the crunch comes whether I should consider proposing to my employer taking a greatly reduced salary, perhaps as low as 20-60% of the current level in order to work a 1- 3 day week, rather than be made redundant? The benefits to my Company might be that in the event that any significant new UK business came along, that I would already be in place to maintain and potentially grow this business.

My concern is that if I were to do this, while it would give me some income and the possibility to do other work to earn money, that it might have a detrimental effect on any subsequent redundancy payment - does anybody have any idea what the situation might be with regards to this please?

zzzLazyDaisy

Bosun wrote: »

My concern is that if I were to do this, while it would give me some income and the possibility to do other work to earn money, that it might have a detrimental effect on any subsequent redundancy payment - does anybody have any idea what the situation might be with regards to this please?

If you accept reduced hours/pay with the company and your position is subsequently made redundant, the statutory position is that any redundancy entitlement will be calculated on the hours/pay applicable at the time of the redundancy. There will be no recognition of the increased hours/pay previously earned.

Bosun

Many thanks for the reply zzzLazyDaisy - you have unfortunately confirmed my worst suspicions..... So it looks like when the time finally comes I should perhaps just try to orchestrate full redundancy rather than try for reduced hours/pay in the interim.

Thanks again for your input.

getmore4less

Is there an option to take the redundancy and set up as an independent sales/distributor/... UK rep person for the business remove their UK legal issues for one employee, and you take control of you hours selling etc. looking for other opportunities to run along side.

katsu

You could ask your employer to agree a period of time in which you work the reduced hours but If made redundant they pay based on your old hours or something between your old and new hours.

Basically discuss a deal and get it in writing. Otherwise you are in the position Daisy described.