Redundancy pay if taking on a new job immediately

WannabeProfessional

Hi guys, first time poster but long time fan of the site here.

I'm coming to the end of a Fixed Term Contract with my employer. I've been there for the last 3 years and will receive redundancy pay (alongside unused holiday) assuming I'm unsuccessful in my internal interview for a different role. I also have interviews with other companies later this week and may be in a position to start a role there shortly after my current FTC finishes (A position I'm thankful to be in!). 

My question is am I able to keep my redundancy pay from my current role if I were to take up a new job with a different company immediately after? To the best of my knowledge I don't have any restrictions placed on this redundancy package, so there would be nothing stopping me. However as this results in a significant uplift (Basically receiving double my income for 1 month in total), I figured it would be best to check before I go any further with my future planning!

NBLondon

WannabeProfessional said:

To the best of my knowledge I don't have any restrictions placed on this redundancy package, so there would be nothing stopping me. 

Unless your outgoing contract had a clause about taking up work with a competitor or your new job is with a related company to the old one. I don't see any way the package could be restricted without it being an unfair condition that you could take to ACAS/tribunal

getmore4less

Keep it quiet from current employer if they don't like paying out.

An employer can withdraw redundancy right upto the last day even if in the notice period.

Consider counternotice once on notice if you have an offer.

Brie

I'm not in too different a situation and have been planning things carefully.  I've been through this 3 times previously with the same employer and so far haven't been told they've changed things this time. 

The crucial thing is your "last day in office" date (call it X).  Now for us that will be a set date followed by 3 months of paid "garden" leave.  Redundancy is then paid at X + 3 months.  The idea behind this is that if the co finds they've messed things up royally and we're required in the office after X then they can call us in from garden leave without any penalty.  

Officially we need to continue to work as normal until X but once that has passed we can cut short our garden leave without penalty to us.  So I will need to wait until officially it's X+1 day to give my notice that I want to start with another employer the following day/week/month.  My employment with the employer will continue until the end of that notice period (say X + 1 day) and then redundancy is paid to me on the basis up to X+1 day.

In practice my manager already knows I'm going to take the redundancy payment come heck or high water and will likely start a new role as soon as I land something I like.  I'm currently working on that to be X + 1 day which means I miss out on 3 months paid leave but I still get what for me will be a full year's salary.

fyi - and with us if we have any unused holiday accrued at X it is considered to be taken during the 3 month paid leave rather than being paid out separately when we terminate our employment.

Thrugelmir

Entitlement to redundancy pay is a statutory entitlement not something to be paid at the discretion of the employer. 

Brie

Thrugelmir said:

Entitlement to redundancy pay is a statutory entitlement not something to be paid at the discretion of the employer. 

Quite. But the problem is that if you hand in your notice you might be deemed to have quit rather than been made redundant.  That's what I'm trying to get my head around given that the bit I wrote above may not actually match what's in my employer's FAQs.

getmore4less

Brie said:

I'm not in too different a situation and have been planning things carefully.  I've been through this 3 times previously with the same employer and so far haven't been told they've changed things this time. 

The crucial thing is your "last day in office" date (call it X).  Now for us that will be a set date followed by 3 months of paid "garden" leave.  Redundancy is then paid at X + 3 months.  The idea behind this is that if the co finds they've messed things up royally and we're required in the office after X then they can call us in from garden leave without any penalty.  

Officially we need to continue to work as normal until X but once that has passed we can cut short our garden leave without penalty to us.  So I will need to wait until officially it's X+1 day to give my notice that I want to start with another employer the following day/week/month.  My employment with the employer will continue until the end of that notice period (say X + 1 day) and then redundancy is paid to me on the basis up to X+1 day.

In practice my manager already knows I'm going to take the redundancy payment come heck or high water and will likely start a new role as soon as I land something I like.  I'm currently working on that to be X + 1 day which means I miss out on 3 months paid leave but I still get what for me will be a full year's salary.

fyi - and with us if we have any unused holiday accrued at X it is considered to be taken during the 3 month paid leave rather than being paid out separately when we terminate our employment.

That will be a contractual arrangements because the law on counter notice only starts when within the statutory notice period.
Ie if you have 3months(~13 weeks) notice but have only worked there say 10 year you would need to work ~3 weeks before counter notice.

If you leave early there may still be accrued unused holiday.

Thrugelmir

Brie said:

Thrugelmir said:

Entitlement to redundancy pay is a statutory entitlement not something to be paid at the discretion of the employer. 

Quite. But the problem is that if you hand in your notice you might be deemed to have quit rather than been made redundant.  That's what I'm trying to get my head around given that the bit I wrote above may not actually match what's in my employer's FAQs.

If you resign that that's a totally different matter. As you've left of your own choice choice. Employers have an obligation to redeploy wherever possible. Rather than making someone redundant. 

TELLIT01

If you have been served notice of redundancy, just make sure you don't accept a start date for the new job prior to the end of the notice period.  That could potentially give the current employer a way out of paying redundancy by claiming you have broken your contract with them.  Other than that, I don't see any valid reason for you not being paid redundancy money.

getmore4less

TELLIT01 said:

If you have been served notice of redundancy, just make sure you don't accept a start date for the new job prior to the end of the notice period.  That could potentially give the current employer a way out of paying redundancy by claiming you have broken your contract with them.  Other than that, I don't see any valid reason for you not being paid redundancy money.

If an employer gets wind of a new job they can withdraw* the redundancy independent of the notice they gave.

*Needs a suitable alternative but the simple one is the job is no longer redundant.


If you then decide to leave on the notice given redundancy is forfeit.

The correct procedure is counter notice.

Brie

getmore4less said:

The correct procedure is counter notice.

What does that mean?