Redundancy - Years of service question

Hi,
Please can anybody advise? 
I am about to start redundancy consultation with my employer.  The question I have is that  my contract states that I have a 3 month notice period. I have been with my company for 4 years, and my redundancy payment has been calculated according to this. However I will have my work anniversary completing 5 years service in September. At present my notice period will end in October.  Should the redundancy calculation be adjusted to reflect the 5 years service or is there a loophole which means that they do not take that into account? 
I have been on furlough for the past few months and my contract states 3 months notice, it also mentions garden leave. 
I have not actually started consultation yet, but expect to shortly. I am officially at risk of redundancy. 
Any insight on this would be appreciated. 
Thanks 

Comments

  • sharpe106
    sharpe106 Posts: 3,559
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    It should be based on 5 years,as the notice period takes you over it. 
  • 3card
    3card Posts: 437
    Name Dropper First Anniversary First Post
    Forumite
    Hi,
    Please can anybody advise? 
    I am about to start redundancy consultation with my employer.  The question I have is that  my contract states that I have a 3 month notice period. I have been with my company for 4 years, and my redundancy payment has been calculated according to this. However I will have my work anniversary completing 5 years service in September. At present my notice period will end in October.  Should the redundancy calculation be adjusted to reflect the 5 years service or is there a loophole which means that they do not take that into account? 
    I have been on furlough for the past few months and my contract states 3 months notice, it also mentions garden leave. 
    I have not actually started consultation yet, but expect to shortly. I am officially at risk of redundancy. 
    Any insight on this would be appreciated. 
    Thanks 
    I read your question earlier and it got me thinking
    I have just been made redundant, i was only given a few days notice and my settlement agreement stated that my employment would end on 30th June and i would receive 11 weeks redundancy along with 11 weeks PILON. My PILON would take me to the middle of September but before that date i would achieve 12 years employment so i was wondering if this would mean i would be eligible for 12 weeks of both payments instead of 11.

    I rang my solicitor this afternoon to ask him but he said that because my settlement agreement states that my employment would end on 30th June i would only be getting the 11 weeks  
  • getmore4less
    getmore4less Posts: 46,882
    Name Dropper First Anniversary First Post I've helped Parliament
    Forumite
    Contractual notice is not relevant.
    Statutory notice from the date of notice or termination date whichever is the later is the one that applies for service for statutory redundancy. 

    Settlement agreements can be whatever is agreed, best to check the legal minimim before accepting less, the legal advice should have covered that. 



  • Thanks for all your replies. It looks like the contractual 3 month notice period is irrelevant, therefore the work anniversary will not apply. 
    It is incredibly confusing as they state if I am made redundant at the end of the ‘redundancy consultation process’ they would serve me my contractual notice, and all holidays accrued and pay will be based on an end date which is past my 5 year work anniversary.  However it looks like they are perfectly within their rights to exclude a work anniversary within said timeframe. At least I know the answer to my question.  
  • I have worked for my employer for 29 years. I’ve been furloughed since March and should have been receiving another payment next week, instead I received a call to say my employer had gone into liquidation and I wouldn’t be getting paid. Surely this money has already been given to them from the government?
    ive also been told I have to wait for a reference from the liquidator to wait for my redundancy. 
    Not everyone has been made redundant. Some people are still employed but have been given new contracts for the same job but as a limited company, can they do this? Any advice appreciated. 
  • sharpe106
    sharpe106 Posts: 3,559
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    Yes they can do this if the company has been liquidated.

    Generally the company pay you and then claim the money back from the government. So they have not already been paid the money. You should be able to add it to your claim though.



  • If an employee receives a payment in lieu of notice, they are generally entitled to receive payment for any benefits that would have accrued during the notice period. However, the method of calculating payment for statutory holiday that an employee has accrued but not taken at the time of dismissal, as set out in reg. 14 of the Working Time Regulations 1998 (SI 1998/1833), is specifically based on the actual termination date, not the date on which the employment would have terminated had statutory notice been given. This means that, even if the giving of proper notice would have given rise to an increased entitlement to statutory holiday, this need not be reflected in the payment of holiday accrued up to the termination date under reg.14.

    From experthr.co.uk
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards