redundancy through constructive dismissal

tkwad

if a company decide they no longer want a specific part of their company to exist and so order their employees not to carry out contracts that have been awarded and therefore the employees have no work they can do and are faced with redundancy is this constructive dismissal?


if so do the employees have to resign to go for constructive dismissal and would that affect their entitlement to benefits?


would those involved be better off taking their redundancy?

bap98189

A company can re-organise itself however it wants. If they are doing this then I would suspect this part of the company is losing money and someone has decided to pull the plug.

As long as they follow redundancy procedures correctly then they are doing nothing illegal and it is not going to be considered constructive dismissal.

tkwad

the company are not loosing money, but have decided they no longer want to provide the service in question, a profit making part of the company. A few hundred thousand pounds worth of agreed works for outside clients are being delayed in starting until all current jobs are finished. Then the redundancies will take place.

Bantex_2

tkwad wrote: »

the company are not loosing money, but have decided they no longer want to provide the service in question, a profit making part of the company. A few hundred thousand pounds worth of agreed works for outside clients are being delayed in starting until all current jobs are finished. Then the redundancies will take place.

The company are perfectly within their rights to run things as they wish. (As long as employment law is not breached)

tkwad

thanks for the replies.. I never cease to be amazed how little righte employees actually have

Bantex_2

tkwad wrote: »

thanks for the replies.. I never cease to be amazed how little righte employees actually have

Not sure what you mean, you have rights to redundancy pay etc

Ronaldo_Mconaldo

If that area of the business is making a profit then there's an opportunity for you to make money. Set up your own business and buy the contracts, try to get a job with a rival using your knowledge of this profit making sector. Be creative.

maninthestreet

What reason, if any, has your employer given for wanting to withdraw from this profitable area of business?

DCFC79

tkwad wrote: »

thanks for the replies.. I never cease to be amazed how little righte employees actually have

Just wondering but what other rights do you think employees should have ?

starrystarry

I'm confused. Why would someone prefer constructive dismissal (and all the associated aggravation) to redundancy? Am I missing something?

staple28

tkwad wrote: »

the company are not loosing money, but have decided they no longer want to provide the service in question, a profit making part of the company. A few hundred thousand pounds worth of agreed works for outside clients are being delayed in starting until all current jobs are finished. Then the redundancies will take place.

How do you know how profitbale a certain part of the company is? are you the financial manager?