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Am I entitled to redundancy?

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I have worked for the same company for 4 years. I have 'Written Statement of Employment" that says I am expected to work up to 40 hours a week which I suppose is another way of saying it's a zero hours contract(?) I have been promoted during this time and am part of the key senior / management team but still have an hourly wage, not a salary, though I always do a full 40+ hours a week.

My employer has informed me today they intend to shut the business at the end of this year. They have offered me a role in their new venture and I will go with them but there is no guarantee the work will actually be there when this business closes.

Am I entitled to redundancy?

Incidentally, in my employment statement under the heading 'Ending this Employment' it states the employment is temporary and expected to last 12 months ( as I said it's been 4 years). Is this usual?

Comments

  • SeduLOUs
    SeduLOUs Posts: 2,171 Forumite
    If the directors/partners of the new venture are the same as the business that is closing down, then they may get around having to pay redundancy as they have offered you alternative employment within an associated company.

    If you do go to the new venture without a redundancy payment then please make sure you are given continuous employment status so that you are still entitled to redundancy etc should the new position not pan out either.

    What has boss suggested will happen? Are you asking hypothetically or have they expressed that they wish to avoid redundancy payment? If the latter, play it very carefully and take proper advice.

    It's a bit more complicated than a straight forward redundancy with the unusual job offer on the cards, so I'd try to find out as many facts about exactly who will be running this new venture, on what basis they intend to employ you and what they intend to happen regarding your contract/continuous service at the new company, and then speak to ACAS for more advice.
  • Thanks for the advice. I don't want to get caught out waiting for a job offer that doesn't pan out and then be looking for work with no income while I wait.

    My employer has 2 businesses and she is closing the one I work for at the moment. They are separate companies and both relatively small. I work for the more established one which she has taken the decision to close for justifiable reasons that I won't go into here. Myself and another colleague have been offered positions in the newer business but as she is still building this - I have confidence this will be successful eventually - the role and the money to pay our wages may not be there when the first business closes.

    There has been no mention of redundancy payment as yet as I think she is genuine in her commitment to taking us with her as we are both long service staff and would be key for her future plans. Due to the nature of the sector we work in there have been times when she has continued to give me my 40 hours a week even when we have temporarily had no income as she knows I only have my wage to rely on and would have been forced to leave the job unless I had guaranteed work. We would have been involved in both business operations if the original had continued to trade in any case.

    I will speak to ACAS if it looks like there isn't a job for me when the time comes just because I want to be clear about my rights.
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