Being made redundant but have new job to go to ?

groundhog12

Hi, I need some advice please, - My employer went into administration about a month ago. I have 31 yrs service and the admin. told me they'd make me redundant and entitled to Govt. Statuatory redundancy payment on the 19th of Feb.
I found another job, who want me to start asap, - now the administrators have said they need me to stay on for another two weeks while we dispose of stock, and offered to double my pay while we do so. I will also only have to work a few hours in the evening, and some weekends.
I'm due to start a trial period at my 'new' job as soon as I'm available. How might this affect my redundancy payment?

sangie595

Without knowing every detail, be very, very careful here. The law says that if you have received an offer of employment before your redundancy notice is served on you, then you are NOT entitled to redundancy pay. And of course, there will be questions about any new employment. What you say to them is your decision, but do recall that it is not all that hard for government departments to share information if you have been slightly liberal with the truth. They may not know you have been made an offer (and I am not suggesting that you lie at all) but they will know if you are earning from somewhere else.


If you have received notice - and that means formal notice, not an "it will happen sometime" - then you can serve counter notice. This effectively means that you say that you have obtained another job and intend to start on a specific date. At that stage it is a matter for discussion and negotiation if you can do both jobs, because agreed counter notice protects your position as someone who is redundant and who is starting another job whilst still getting redundancy.

getmore4less

Get them to make your redundant with PILON and you will do the clearing up work on a contract basis.
(keep the new job quiet don't tell ANYONE)


If they are expecting you to claim from the NI fund then there is a good chance you have to mitigate your losses(they take JSA off the money even if you don't claim it) so any new pay could impact the payment.

groundhog12

Thanks people. I might have to turn down the trial period in a new job until I'm finished at the old job. No formal offer has been made pending a succesful outcome.

Thanks for your input.

getmore4less

So you don't have a real job offer yet?

groundhog12

Not formal, just an offer to trial period and see if it suits.

sangie595

groundhog12 wrote: »

Not formal, just an offer to trial period and see if it suits.

I wouldn't even go this far - I would steer clear of doing anything else unless you are sure that you are in your notice period or that your employment has terminated. If you are being remunerated for working then it is a job - however long it lasts for. And if you aren't being paid, stay well away - you should be being paid!

groundhog12

The administrator has said that he verbally informed me I was beginning a notice period on the day they took control. I don't remember this, in fact I seem to remember being told ' we hate making people redundant, we're hoping to keep your job. By selling the business'. Apparently now I've had 4 weeks notice of 12 but will probably be made redundant I. Two weeks time.

sangie595

groundhog12 wrote: »

The administrator has said that he verbally informed me I was beginning a notice period on the day they took control. I don't remember this, in fact I seem to remember being told ' we hate making people redundant, we're hoping to keep your job. By selling the business'. Apparently now I've had 4 weeks notice of 12 but will probably be made redundant I. Two weeks time.

You may have guessed but I am not a trusting soul. Not when it comes to employment. Get that confirmed in writing. Redundancy notice can be withdrawn - and you have nothing in writing that it was ever given. Then you can give counter notice if you have a job to go to, and all you lose out on is some notice pay if you don't work your full notice. Keep everything above board - especially when you are talking about taking money from the government, because the chances of them finding out it isn't are very high now.

getmore4less

One key question have the adminitrators got enough money to pay the notice and redundancy.

If they have then try to get it out of them ASAP with PILON for the rest of the notice, then you can do what you want.

If it is the NI fund that will be paying then things change.

Get the notice of dismisal by reason of redundnacy ASAP you have the right to(by request) that in writing.
http://www.legislation.gov.uk/ukpga/1996/18/part/IX/crossheading/written-statement-of-reasons-for-dismissal


They can withdraw the redundancy(but if you get counter notice in first that block that option for them) but not the notice so you have options if they sell the company or TUPE you with part of the business.

The risk you currently have is they sell the busines or TUPE and say you were never on notice.

without that notice

sangie595

The OP says that they have already been told that it will be the NI fund, so PILON isn't an option. They just need to get their notice in writing and then if they have a job serve counter-notice.