Carillion redundancy

seatbeltnoob

Hi


My friend works for carillion and he's been told that his division will be dissolved due to the fact that the group has been overall lossmaking.


I assume this means he is now redundant although he is continueing to carry out client work until told to otherwise.


He's been with the company for over 13 years, the HMRC website says he's statutory entitlement is 8 weeks wages, I am trying to work out if there is any more than than? Can the company offer voluntary redundancy on top of that. Also is he entitled to accumulated holiday pay on top of that?


Finally what are the laws regarding redundancy pay protection? When the business in liquidated where does redundancy pay fall in the pecking order of things. Most importantly is redundnacy paid before shareholders get their oars in?

sangie595

Eight weeks has to be wrong if he's worked there 13 years. The company can't offer more - they are screwed! They don't even run the company any more. The liquidator does.

Holiday pay- yes.

In a spectacular fall of this kind, with £ millions owed - there won't be a pecking order. It will almost certainly fall upon the redundancy payments office, and the bare minimum.

Until he is told otherwise, yes he must go to work, or he'll risk getting nothing.

antrobus

seatbeltnoob wrote: »

...I assume this means he is now redundant although he is continueing to carry out client work until told to otherwise...

Obviously your assumption is wrong, as he is still working.

Given that the liquidator is in charge, your friend will know for certain he is redundant when the liquidator informs them of this fact.

They might or might not be made redundant. It would depend on what they are doing and whether somebody else takes over the contract and they get TUPE'd.

Carillion staff working on HS2 have already been transferred to KSL.

ceh209

seatbeltnoob wrote: »

Hi
He's been with the company for over 13 years, the HMRC website says he's statutory entitlement is 8 weeks wages

That could be right - it's 0.5 weeks for every year where you were under 22

seatbeltnoob

I'll leave it with him, it's his personal circumstance.

The 8 weeks is the absolute minimum enshrined in law. However, since the company is going bust there is nothing really requiring redundnacy and wages to be paid out first from liquidation. There have been cases where people were made redundant and they got nothing.

My friend has been notified that their department is one of the depts that will be liquidated. So he will be made redundant at some point,

p00hsticks

seatbeltnoob wrote: »

The 8 weeks is the absolute minimum enshrined in law. However, since the company is going bust there is nothing really requiring redundnacy and wages to be paid out first from liquidation. There have been cases where people were made redundant and they got nothing.

In cases where a company is insolvent and cannot meet the redundancy payments, you can claim your statutory redundancy from the government ...

https://www.gov.uk/claim-redundancy