Redundancy affected or not?

dollyponduk

My husband had his first of three meetings regarding his compulsory redundancy due to his position being relocated to a different part of the UK. Should it go ahead he will get redundancy pay plus three months wages in lieu of notice at the end of July. He has been approached by a contracting company to take up, temporarily, his own position at the new location. If he has signed on the dotted line with his employer, can he leave on 29 July only to start contracting on 1 August with the same company without losing his redundacy pay or 3 months in lieu?
Thanks
dollyponduk

ps he will not receive his money until the end of August...

sangie595

dollyponduk wrote: »

My husband had his first of three meetings regarding his compulsory redundancy due to his position being relocated to a different part of the UK. Should it go ahead he will get redundancy pay plus three months wages in lieu of notice at the end of July. He has been approached by a contracting company to take up, temporarily, his own position at the new location. If he has signed on the dotted line with his employer, can he leave on 29 July only to start contracting on 1 August with the same company without losing his redundacy pay or 3 months in lieu?
Thanks
dollyponduk

ps he will not receive his money until the end of August...

So he has not yet actually received notice? If not, he could be in a very precarious position. Receiving a job offer before the redundancy notice could allow the employer to say that he isn't entitled to redundancy pay - even if he turns down the job. It would depend on how the employer chooses to react - some may not care, some will.

If he is on notice, then then situation changes, but we would need to know what his statutory notice period is - in other words, how long has he worked for this employer?

Prothet_of_Doom

The HMRC take a dim view of people who take redundancy, and then start contracting for the same company, as self employed (ltd company contractors). This being a different location, there might be less of an issue. Google IR35 and Employment Tests.

As far as dates go, I'd be taking my redundancy pay, on 29th July, spinning out the signing of a "contract" whilst your legal team checks it for IR35 compliance, and taking 2 weeks off at the start of august, (whilst you apply for other things - have to show you made an effort not to work for this bunch - or just go on holiday) and then sign only once the redundancy payment is in the bank.

When I was made redundant, I go zero redundancy due to 2 year rule, but 3 months pay, which was paid over the 3 months, so I left in May, started my ltd company in June, Started my first unrelated contract in June, and continued to be paid in June, July and August, as normal.

dollyponduk

His company do not know it would be him coming for the contract on 1 August as it is another company who have got the contract and he would be working for them.
My thoughts are that there should be a break in between. He's worked there for 12 years and the redundancy would be substantial, to us.
To be honest the company have been unpleasant all round and by him contracting in his old job it would just be doing them a favour in my opinion, but he is adamant he wants a job - any job will do kind of thing...
Thank you very much for the replies,
dollyponduk

getmore4less

If he has refused to relocate as a suitable alternative then comes back contracting that could cause issues.

sangie595

dollyponduk wrote: »

His company do not know it would be him coming for the contract on 1 August as it is another company who have got the contract and he would be working for them.
My thoughts are that there should be a break in between. He's worked there for 12 years and the redundancy would be substantial, to us.
To be honest the company have been unpleasant all round and by him contracting in his old job it would just be doing them a favour in my opinion, but he is adamant he wants a job - any job will do kind of thing...
Thank you very much for the replies,
dollyponduk

They will know when he arrives, won't they? What if they sue him to get their money back?

getmore4less

If he is prepared to work at the new location there is the possibility this should be a suitable alternative or a TUPE

I would be considering wanting the company to be putting a case in writing that neither apply so that they have difficulty claiming later it does.

How did this firm that got the contract know about him?