Redundancy for the 1st time - is this fair?

BSW89

Hi everyone

I don't want to divulge too much information on here but have just been put on notice of redundancy and had a few questions I can't find the answer to. Does anyone have any ideas on the following:

1) This is a large, reputable company which is doing very well financially, and simply making redundancies to cut costs and make more profit. No performance issues. I've been offered 6 weeks gross pay in return for signing a compromise agreement. Alternatively it'll be compulsory redundancy. Is this a good offer? I know it beats statutory pay but how hard should I negotiate for more?

2) My contract says I could be asked to work anywhere in the UK. They're making my role redundant and creating a new one in a different UK city, same grade and responsibilities but half the salary. I've been offered this but am not interested. Can they legally do this?

3) I've applied for another role in the company and am going through the same recruitment process as external applicants, and the salary will be different to my current one (probably less). I've read employees should be offered a suitable alternative role where possible. Does this mean that if I demonstrate an ability to do the job, they'd have to offer it to me regardless of whether I was best applicant? And would they need to offer me my current salary?

4) I've also applied for a role at the company which wouldn't start until later this year. If I get this job, there would be an interim period of several months where I'd be unemployed. I think they'd try to find me an interim role, but if they didn't, would I be entitled to any redundancy pay as I'd be leaving and re-joining?

Appreciate that's a lot of questions and I may need some proper legal advice, but if anyone can give any guidance that would be great. Thanks for your help.

BSW

Takeaway_Addict

how long have you worked there?

BSW89

Sorry - should have said: 3 years.

Thanks
BSW

getmore4less

Be careful applying for jobs rather than looking at suitable alternatives they are not the same thing.

Make sure you are happy with the T&C of the job before applying as you could lose your redundancy money if accepted for the role and you refuse to takeor make sure that it is clear the application is just to find out if the job could be considered as a potential suitable alternative.

Depends how mean your current employer wants to be.

BSW89

Thanks getmore4less.

We have just been told to look on the company's vacancy list for jobs, there are hundreds - no specific alternative jobs have been offered except the one which is essentially my job in a different city with a big pay cut.

The company won't give any information on salary/T&Cs for roles until you're offered the job.

Incidentally, I applied for both those jobs before being informed of the redundancies. Not sure if that makes a difference.

Thanks
BSW

tacpot12

"Is 6 weeks gross pay a good offer?" No, but anything is better than nothing. You can try negotiating for more, but the company will have a good understanding of your value to them, so you might find you don't have a lot of leverage.

"Can they legally create your role elsewhere on half the money?" Yes.

"Does this mean that if I demonstrate an ability to do an alternative job, they'd have to offer it to me regardless of whether I was best applicant? And would they need to offer me my current salary?" If you demonstrate the ability to do the job, they 'must' offer your the role, but unless you impress the hiring manager, there are too many ways for them to argue that you're not suitable if they don't believe you're the best candidate for the job. They only need to offer you a salary that is within the range payable for the role you've applied, regardless of your current salary. I would only take the role if is was the best job for you.

"If I get the role that starts late in the year, and there is no interim role, would I be entitled to any redundancy pay?" You'd be entitled to Statutory Redundancy or any higher amount the company wanted to pay you; probably not much than Statutory if they are only offering six weeks redudnancy if you leave the company completely. If you are offered the role that starts later in the year, ask the hiring manager to negotiate for you to receive the full redundancy package of six weeks. You may have to pay tax on any redundancy package if you return to a role shortly after leaving, so you should negotiate on the basis that the payment is taxable, and that the job offer could be withdrawn before your can start.
Good luck

BSW89

Tacpot12, that all sounds like good advice, thank you for that. Really appreciate it.