Entitled to redundancy pay?

Sibbers123

A friend of mine is about to be made redundant. She started employment on 11th October 2018. She received her ‘at risk letter on 27th August’ and her notice period is one month.

I am aware that you have to be employed for two years for redundancy pay but as it is a large employer, I would imagine the 45 day consultation period would apply. Would this mean that they have to wait until 45 days after the ‘at risk’ letter before formal redundancy and thus the employment would exceed 2 years (without notice period)?

AskAsk

as far as i am aware, the redundancy starts from at risk notice, which will include the consultation period.  therefore she won't be entitled to redundancy pay unless the employer feels generous.

Thrugelmir

When did the company first announce the potential redundancies? That's the date that the consultation started. 

getmore4less

It is not the size of the employer it is the number of redundancies that triggers the consultation period.


Notice periods don't start till you are put on notice of termination due to redundancy
(at risk does not do that)

The key date for the redundancy is the relevant date which is the date of termination OR the date of notice + statutory notice whichever is the latest.

With statutory notice of 1 week if they give notice an terminate immediately on or after the 3 Oct they will eligible for a redundancy payment.

prowla

Even if it were to pan-out to the 2 years, Statutory Redundancy is 1 week's pay per year of service, so it's not going to be megabucks.

Juliette100

At risk means she’s going into consultation either for 30 or 45 days. So if she was put at  risk Aug 27 and depending on the potential roles to go it appears she’ll make it to the end of Sep at least (30 days) before the consultation is exhausted.   She has a months notice which they could ask her to work which will get her through the 2 year period but I doubt given the current climate that will happen and so she may be paid in lieu. If that’s the case the exit date is likely to be pre 2 years. As has been said the redundancy payment will only be 1 weeks pay depending on age maybe 1.5 weeks but unless consultation delays or is 45 because the proposed redundancies are above 100 over 90 days, then  I suspect the 2 years won’t be met. If the consultation is 45 then she will just make the 2 year threshold. 

getmore4less

the minimum redundancy Could be
1 week(2x1/2 weeks if young <=22) upto
3 week(2x1.5 weeks if older >=43)

avawat20

Consultation starts from the date you consult with Union/staff association. At risk is issued once consultation is finished because you've consulted by that point and know the outcome. The point of consultation is to explore all other alternatives to redundancy (although you can apply for new vacancies in your at risk period).

As someone has said, consultation time depends on number of employees, not size of organisation so if it was less than 20 employees affected they don't even have to consult.