Clarification on redundancy 22 August 2018 at 7:44AM in Redundancy & redundancy planning 12 replies 2.5K views

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Hi all

After over 9 years of employment and after Consultations with my employer, I have officially been made redundant

I have been informed and received details (via letter along with a financial statement), that my notice period started on 20th August and my last day of employment will be 29th October.
I am NOT required to work my notice period, so said my goodbyes on the 20th and left.

Also within the letter, it states that I am not restricted by when I can start new employment as part of the agreement. It also states that they would be more than happy to provide a reference.

My questions are, if I was to get a new job within the notice period, do I need to let my employer know of this, regardless of whether a reference is required or not from the potential new employer?
And also, would I lose any Notice Pay/Redundancy pay from my employer, bearing in mind, I'm not required to work my notice and that I'm free to start new employment whenever, etc?

Hope this makes sense.

Thanks

ChuckMountain

It will be down to what is in the contract.

Are they giving you Pay in Leave of Notice (PILON) or Gardening leave.

From what you describe it sounds like they have put you on Gardening Leave and that you are still employed by the company with your last date being the 29th October. They don't expect to you work but if that is the case they would normally pay you as per usual up till that date and then shortly after you would get your redundancy payment. Your company benefits may continue up till that date too.

If that is the case you would not normally be eligible to work for a new employer.

RED_KEN

Sorry but that is not so. Payment in lieu of notice is standard practice. One week for every year you have worked for your old employer up to 12 weeks. Plus payment for any holiday entitlement owing.
You can start a new job the day after you finish if you wish .
Or sign on.
Your old employer no long longer owns any part of you or your time. Good luck for the future.

McKneff

if you are over 41 years of age, your redundancy pay increases too.

sangie595

RED_KEN wrote: »

Sorry but that is not so. Payment in lieu of notice is standard practice. One week for every year you have worked for your old employer up to 12 weeks. Plus payment for any holiday entitlement owing.
You can start a new job the day after you finish if you wish .
Or sign on.
Your old employer no long longer owns any part of you or your time. Good luck for the future.

This is hogwash.

Payment in lieu of notice is not standard practice. It is entirely up to the employer whether they pay it or not.

Statutory notice is one week for every year up to a maximum of 12 weeks, after two years service. Contractual notice is whatever it is.

The employer appears, based on what the OP had said, to have given gardening leave, which continues employment. So yes, they are required to inform the employer, and might loose some notice pay if they start another job in the notice proud.

The first advice posted is in fact totally correct. Yours is totally wrong.

RED_KEN

Thirty years at the sharp end as a senior union representative and have hand held hundreds through
redundancy during that time. Never came across gardening leave not once. Sounds like something out
of the dark ages, or is that where we have gone back to?

.

ChuckMountain

RED_KEN wrote: »

Thirty years at the sharp end as a senior union representative and have hand held hundreds through
redundancy during that time. Never came across gardening leave not once. Sounds like something out
of the dark ages, or is that where we have gone back to?

.

What industry are you from?

Gardening leave has been around for ages both as way of holding people to their contractual notice period from either them resigning or being made redundant.

sangie595

RED_KEN wrote: »

Thirty years at the sharp end as a senior union representative and have hand held hundreds through
redundancy during that time. Never came across gardening leave not once. Sounds like something out
of the dark ages, or is that where we have gone back to?

.

40 years as a paid union official with over 20 as a very senior official. I have negotiated thousands of redundancies in my time. Gardening leave is exceptionally common, both for redundancies and for terminations. And you are still talking hogwash. Gardening leave has significant benefits over PILON, and in many instances would be the preferred exit strategy. You perhaps don't actually have as much experience as you think you have?

sangie595

ChuckMountain wrote: »

What industry are you from?

Gardening leave has been around for ages both as way of holding people to their contractual notice period from either them resigning or being made redundant.

Not just holding people to their contracts. It also means that people are entitled to continue to receive contractual benefits, accrue holiday etc., Which means it can be financially beneficial to employees.

getmore4less

McKneff wrote: »

if you are over 41 years of age, your redundancy pay increases too.

It is actually over 42 as you need a full year of service over 41 to get the extra 1/2 week

getmore4less

garden leave goes back a long way I recall the term being used in the civil service and military way back(family).

A little bit of research says the term was used in an episode of Yes, prime minister in 1986.

There are reference in court cases as well.
William Hill Organisation Ltd v Tucker [1998] IRLR 313