Repaying Redundancy Re-employment

skynet2016

Hi Everyone, not sure if this is the right place to post. I was made redundant from my firm after 9 years of service, they gave an enhanced amount of about £4550 on top of statutory. There was no suitable position after the collective consultation and I took the redundancy. Three months past and no work or prospect of a job, an old colleague from my old company said there was a new role that was perfect for me. I was hesitant and applied for the role, the positon was the same pay band as my last position but they were offering £2500 less albeit in Central London. At the interview stage we very briefly mentioned that I would have to repay 20% of the redundancy package back, although no representative from HR was present. I was called back for a second interview and once again no further mention of repayment procedures. (Agreed it should have been my responsibility to discuss) being 3 months out of work and a family to support I was keen at any cost to get back to work.
They offered me the role and terms and conditions but no mention of redundancy repayment plans, I assumed perhaps this could be done at a later stage once I have proved my worth. I started my new role and on the second day received an internal email saying they would be deducting the redundancy repayment over the next 3 salaries - £4550 divided by 3 months. I was shocked but continued to work and emailed HR 3 times and also left messages on the phone. No one got back to me by the end of the day so the following day I emailed my manager and said it was not possible to work like this, I would be left with £50 a month after transport and repaying their debt. I lost a days pay as I refused to go to work until I had a discussion with HR. The following day they replied to me email and offered to accept a payment plan of £558 per month until the debt was clear. Logically I accepted, but after paying £600 a month rail fares plus their repayment I was left with under £1000 to pay rent and feed my family pay bills etc, I struggled for another month and was now getting into debt and not eating, I rang HR after being told they would not be able to anything and that contractually I was bound to have to repay the money.

My manager and staff were very happy with my performance and were happy I was back working with them. I was now working feeling very stressed and frustrated and only after begging them to re-negotiate they were prepared to consider £250 a month this was still unaffordable to me. I had no choice to accept as I had returned to employment with then I was bound legally to repay this money - damned if I stayed damned if I left. I got as far as the 3rd month and was becoming physically and mentally drained, I left as it was financially impossible to make ends meet with this debt repayment plan for redundancy. I found a new position and have been with this company now for 4months. However I am receiving threats of legal action , emails / phone calls saying I have to repay the amount in full. I am not well as a result of all this and desperate to find a solution. I may be wrong but part of me feels as though they only re-employed me to recover the additional money they gave me and deliberately avoided any pre-employment discussions with me to ensure I would sign a new contract and be bound legally to repay them. If I have to pay then I have to pay and a lesson learned, however, I am wondering if this is all a little underhanded and the fact that wanted to take 90% of my salary for 3 months being possibly illegal. Any advice welcome I am man enough to accept if I am at fault, at the least a problem shared right. Thank you in advance.

Manxman_in_exile

I may be wrong (and if I am, more knowledgeable posters will quickly correct me) but I think you may need to understand what T&Cs of your original contract were applicable to the enhanced redundancy payment you received. Or whatever the specific terms of that redundancy "agreement" were. I suspect that somewhere there will be a condition that, if you are subsequently re-employed by your original employer, the enhanced payment has to be repaid.


In a fair world this should have been pointed out to you by your old employer when you re-applied to them. Or maybe they are trying to manipulate you to recover the payment.


However, at the end of the day, you have some responsibility to understand what conditions were applicable to the enhanced payment you originally received (if there were any). Easy for me to say as I'm not in your unfortunate position, but if they paid you over and above what is required by statute, then there may be strings attached.


I do sympathise, however, as you've found yourself in a Catch 22 where you haven't worked for some time, and now can't afford to work. It's not a fair world, but the law isn't necessarily meant to be fair, mad as that seems.

getmore4less

Ask them for the signed contractual agreement to repay the money.


The issue is that they can make it a condition of the original payment OR a condition in the reemployment.

I think it would need to be in writing and signed by you otherwise an illegal deduction of wages as it does not qualify for an exemption.


if they want the money back I would be arguing for continuity to the previous employment for any future enhanced payments.