Alternative Offer and Legal Entity

thee_grimmclaws

-I work for and have a contract with Company A

-4 years ago Company A was bought by Company B.  Company B is the parent company of Company A

-My role with Company A is being moved to a foreign territory

-I've been offered an alternative role with Company B or redundancy

My question is:  If I were to take the alternative role, wouldn't redundancy still apply as Company B are a different legal entity to Company A?  My settlement clause specifically states termination of employment with the legal entity (Company A).

Thanks in advance for any help.

lincroft1710

The purpose of redundancy pay is to provide an income until a new job is found. Until you have been given notice of redundancy you are still employed and not entitled to redundancy pay. Surely it is better to accept the new role than face the prospect of trying to find a new job.

thee_grimmclaws

lincroft1710 said:

The purpose of redundancy pay is to provide an income until a new job is found. Until you have been given notice of redundancy you are still employed and not entitled to redundancy pay. Surely it is better to accept the new role than face the prospect of trying to find a new job.

I don't think you've understood my question but thanks anyway.

lincroft1710

thee_grimmclaws said:

lincroft1710 said:

The purpose of redundancy pay is to provide an income until a new job is found. Until you have been given notice of redundancy you are still employed and not entitled to redundancy pay. Surely it is better to accept the new role than face the prospect of trying to find a new job.

I don't think you've understood my question but thanks anyway.

I understand your question perfectly.


I assume you want to take the new job. As the job could be termed to be with an associated company it appears you may not be entitled to a redundancy payout. In fact as I read this https://www.gov.uk/redundancy-your-rights/suitable-alternative-employment it seems you may not be entitled to redundancy if you turned the job down.  So your employer may actually be doing more than they need to.


I should emphasise that the above is my opinion.

getmore4less

The key is do you retain continuity of service so any future redundancy is with the longer service.

It has to be if they are going down the suitable alternative route.

If no continuity you are due redundancy.