Redundancy

Chucklebutty321

On Tuesday I received a call from my MD who informed me that I was being made redundant after 11 years with the company. He confirmed my redundancy period is 3 months which would take me to the end of Set 2018.

The company will cease trading in the UK at the end of August 2018 2 months into my 3 months redundancy period. However my MD is starting a new company (different name, company reg etc) from the 1st Sept and has asked me to join this new start up. I have other opportunities in respect to starting a new job at the end of my redundancy notice at the end of Sept so the questions I would like help with are as follows:

1. From my understanding I can't accept or start work with another company within my 3 month redundancy period? without the risk of loosing my redundancy pay which is approx 16 weeks full pay at 1.5 so not a small amount.
2 . As the company is ceasing to trade at the end of Aug, 2 months into my notice period of 3 months (the company is not insolvent just shutting the UK operation & no replacement jobs offered just redundancy) can I take a new position after the company ceases to trade or would I still have to wait until the full 3 months is completed?
3. If I can't start a new job after the company has ceased to trade at the end of Aug why would my MD offer me this new position with the company he's starting at the beginning of Sept (still 2 months into my redundancy period) as surly this would jeopardise my final redundancy payment as I would have taken a new job before my 3 months notice period expires.

Andy help and advise would be much appreciated.

getmore4less

What you need top do is get clarified how they are dealing with the notice period.

1. Have you work it.
2. Have you work none/part of it and have some/all as garden leave
3. Have you work none/part of it and have some/all as PILON
4. Garden leave none/part of it and have some/all as PILON


if the company is shutting and want to have everything tidy by end Aug then they need to have terminated the contract by then which leaves options 3 or 4.

They should terminate with a PILON payment and that ends employment.

Best to keep new opportunities to yourself as the default.
A little difficult with one of your options but that should be between you and the MD.

A lot of places a decent and pay out anyway supporting those being made redundant some can be mean and look for any excuse not to pay out. Do you have an idea where your place is on that

There is a potential complication if the MD is starting up a new company that is taking over some of the work/contracts/business/customers of the old company then TUPE may apply and that could change things.

Chucklebutty321

Thank you for the information.

I think they are probably going down the TUPE route as he will be taking our current client base. The company will cease to trade from the end of August and his new company starts at the beginning of Sept which would mean I would be working for the new company for my final 4 weeks of redundancy notice period.

Do you have any information on how TUPE would potentially change things if this is the route they have taken?

marlot

If you're TUPEd, you're not made redundant.

Ozzuk

There will be more knowledgeable people than me, but my view is if TUPE applies then you don't get redundancy (you aren't redundant) but you at least get to keep years of service (could be important for pension). You should be able to keep any benefits that are contractual, but you may also be offered new terms. Your terms are protected under TUPE, but in reality it isn't difficult to get around them - especially if this is a 'new' company.

If you do manage to get redundancy, and then join this startup as a new employer then you'll be on a new contract, you will lose any old benefits, years of service etc. You won't have any real protection for first two years. On the plus side you can negotiate new terms and salary.

As to the legalities of which one applies...that is more difficult! It certainly sounds like TUPE applies, but who is going to push for it? If you are happier leaving, and coming back as a new employee then (IMO) I can't see an issue, I've had team members do that.