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Voluntary or Compulsory Redundancy

Hi all

Hope someone can spare a few minutes to read my predicament and let me know your thoughts.

I am being made redundant as the company i work or has lost a big contract and there isnt enough work to go round. There is the option of TUPE Transfer or apply for another role in the company (one step down and considerably less money). In applying for the new role, this is the same level but not the same job as I am doing currently, and requires full time work, where i am currently 30 hours due to childcare commitments.

The TUPE Transfer would protect my rights, however it would be to a notoriously bad company who have a very poor record and low staff morale. I am not keen on this option and would rather apply elsewhere.

My question is this. My employers state that my redundancy is voluntary, however i consider it to be compulsory as my position will no longer exist. They state that if i turn down a TUPE transfer (no offer yet made from the new company), then it is Voluntary and not compulsary. I queried this with ACAS, who were a bit ambiguous. I will phone them again this week.

I am 44, and have been there 7 years, so statutory pay will be 7 weeks pay x 1.5 and i have been given this in writing. I know others facing redundancy in other offices around the UK have been offered enhanced packages above statutory, but the company policy clause states this is discretionary. My last question is this: (theoretical)

If company XYZ makes 10 people redundant, and 9 receive enhanced packages but 1 receives only statutory, regardless of exemplary record, would the above policy clause defend that company against discrimination? Would they at least have to justify why it wasn't being made available to that 1 person?

Many Thanks in advance

Dave J

Comments

  • p00hsticks
    p00hsticks Posts: 14,531 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    DaveyJacks wrote: »
    They state that if i turn down a TUPE transfer (no offer yet made from the new company), then it is Voluntary and not compulsary. I queried this with ACAS, who were a bit ambiguous. I will phone them again this week.

    Having been through TUPE twice, that surprises me - my understanding is that if you are in scope for TUPE then if you decide not to move over you are considered to have resigned - the role is still there so it's not redundancy.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    My question is this. My employers state that my redundancy is voluntary, however i consider it to be compulsory as my position will no longer exist. They state that if i turn down a TUPE transfer (no offer yet made from the new company), then it is Voluntary and not compulsary

    This is not a redundancy if in scope of TUPE.

    You are lucky they are offering a way out.

    TUPE or volutary termination with payout.

    THe new company don't offer they get given those in scope of TUPE.

    If the new place is happy not to take everyone doing the work now the chances are they will make redundancies soon after the transfer. Often the case if they have a cheaper bid and allready have people to do the work that are allready cheaper.


    You can try to negotiate a bigger package but the fall back for the cuurent employer is to stick you on the TUPE list or have you resign.
  • DaveyJacks
    DaveyJacks Posts: 11 Forumite
    edited 11 January 2016 at 3:47PM
    Many thanks for your insight and assistance.

    If this still applicable if the position offered in the TUPE Transfer is in another location in the UK? I live and work in Bournemouth but the position offered in TUPE may be in Portsmouth or Farnham, some way away. Would i still be obliged to accept that?

    IF the company takes over the contract decides not to take me on under TUPE Transfer, would i then be considered as Compulsary redundant? My current company pays significantly more than the new company so it is likely that we will not be taken on as they would need to maintain these salaries.

    Thanks again

    Dave J
  • Hi
    Just as a latest to this, the new company have announced yesterday that they will not be taking me on under TUPE and therefore my current company will be making me compulsory redundant with govt minimum payment.

    I have not yet received any letter stating that my job is going, but I have been told verbally i have till the end of February (4 weeks).
    Is this right? Do they not need to formally give me a period of notice?

    Thanks

    Dave
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    you said you had been there 7 years that's 7 weeks notice minimum.

    if you have not been given an official notice of termination due to redundancy then the clock has not started.

    You may have a claim if it was clear you should have been TUPEd as the dismissal is directly connected
  • p00hsticks
    p00hsticks Posts: 14,531 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    you said you had been there 7 years that's 7 weeks notice minimum.

    Although the company may want to give Pay In Lieu Of Notice (PILON)
  • Yes, thanks. I read that i should have 7 weeks but wasnt sure if this was included in or additional to statutory redundancy. Having looked on the forum it seems its the latter. So an additional 3 weeks pay on top.

    Thanks guys and gals
  • Peelerfart
    Peelerfart Posts: 2,177 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Agreed, PIlon is additional to redundancy but is taxed at your normal rate.
    Space available for rent
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