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Notice period -how does it get covered in redundancy

edited 13 June 2014 at 7:49PM in Redundancy & redundancy planning
5 replies 1.6K views
madeinireland_2madeinireland_2 Forumite
381 Posts
edited 13 June 2014 at 7:49PM in Redundancy & redundancy planning
Hi,

I have a work colleague who is being unfairly targeted by the business to get him to leave the company.i won't go into too much detail except that they were about to start an formal process with him when he went off sick on stress. He is about to return after being off for over a month and is sure they will start fairly quickly into the formal process again - but they do have other options I suppose - like make him a compromise offer. The company has a voluntary redundancy package amounting to 9 months pay - but I think it's not offered to those on a formal process and a compromise deal of 3 or 6 months is more likely.

As he is normally entitled to 6 months notice ( assuming not being dismissed on gross misconduct) - the question is....

If he went through the formal process which could take a couple on months or so would they then have to offer him 6 months pays to go anyway rather than him hanging around in the job for another 6 months ?meaning he has in effect got almost the same as the 9 months pay anyway

Thoughts please on his best option ? - he is not likely to want such a stressful or highly paid job when he goes anyway - so probably does not mind leaving with a black mark against him if he has too.

Replies

  • UndervaluedUndervalued Forumite
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    Keep in mind that if they want to be difficult they could make him work the notice and take any holiday that is owed during that time.

    Alternatively, again if they want to be awkward, they could put him on "garden leave" where he remains on the staff, can't start work anywhere else and could be called back in at a moments notice. Again he could be forced to use all accrued holiday.

    He would have no automatic right to your preferred option of payment in lieu of notice.

    Finally, technically there is no such thing as "voluntary redundancy". Either the post is redundant or it isn't. So called VR is actually a mutually agreed termination so very little different to a compromise (settlement) agreement.
  • Yes but I think he has plans to use his holiday as soon as he returns to work therefore delaying the formal process a bit more.

    Also he won't mind too much having to hang about the 6 months as he would Then remain on the companies very generous final salary pension scheme and sharesave schemes for longer which if he was paid in lieu of notice I don't think he would get - so I guess it its not clear cut which is the best option.
  • Hi,

    My colleague has recently found out about something called "retirement in the interests of efficiency". He believes now that his best course of action is to remain off on sick with stress. He was feeling pressurised to return anyway but thinks that the company would go down this route if he remained off for a long time. Apparently if they do go down this route he would get paid his pension immediately without actuary reduction. I had not heard of this before. Is it true ? And are there any pitfalls that he has not thought about. It just seems too good to be true really.

    Thanks
  • SystemSystem Forumite, Community Admin
    177.9K Posts
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    There again they could go down the route of dismissal on capability grounds if he stays off sick
  • I think that is his point though - as I understand it the options open to the company are medical retirement (very unlikely) or retirement in the interests of efficiency - but both are instigated as a result of capability (as a result of him being off long term sick) and he would be effectively dismissed.

    It just seems like this is an attractive way to be dismissed and one that a lot of people would be happy with -so I can't quite understand whats been missed ?
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