Redundancy and Performance Unit Plan (PUP)

SteveHobson

In my company I have been included in Performance unit Plan (PUP). Which in short select company metrics are used to value units awarded to employees. This units are then converted into cash payments after 3 years. (its a bit like shares but the company is private)

Unfortunately I am going to be made redundant as the company is shutting down the IT division. 4 months before the 3 year date. I know the exact amount I would have been paid as I have a statement from the company of their value.

As I worked my way up the company (and still on my original contract), there is no mention of PUP. I have spoken to HR and they dont know what happens with them (no one else in the UK in the same company has PUP).

Does anyone know what their status would be ? Should they be treated in Pro rata way ? or is the value simply lost ? Would there be a difference between US and UK treatment of this ?

getmore4less

What's happening to the IT function is there a TUPE situation.

Your PUP will be contractual.

SteveHobson

Its not a TUPE situation, big parts of organisation are shutting down. So UK IT no longer required. Future IT will be handled from US/India.

Unfortunately cant find any applicable reference in contract. It is not normal in my organisation for people to be offered it (I dont know anyone else). I am guessing it was just not considered in UK contracts.

getmore4less

If it is used on US contracts then find out what the terms are on those for leavers.

Masomnia

Even if not in your standard written contract I think the company would struggle to argue that you are not contractually entitled to the payments. Good luck.