Notice period in contract of employment

Mistermeaner

hi

my company has recently announced restructuring and my role is at risk of being made redundant

I have been employed here for just over 2 years

my contract contains a clause whereby they have to give me 12 months notice to terminate my contract (and i have to give them 6 months)

Seems pretty cut and dry to me but just wanted to double check that if they want to get rid of me they need to give me that 12 months notice (or pay me the equivalent if they want me to leave earlier (PILON))

Is it that simple or can they impose anything else?

Obviously we are free to agree something else but wanted to check the default legal/contract position

PS there are no provisions in my contract regards relocation etc.


Thanks

Undervalued

Mistermeaner said:

hi

my company has recently announced restructuring and my role is at risk of being made redundant

I have been employed here for just over 2 years

my contract contains a clause whereby they have to give me 12 months notice to terminate my contract (and i have to give them 6 months)

Seems pretty cut and dry to me but just wanted to double check that if they want to get rid of me they need to give me that 12 months notice (or pay me the equivalent if they want me to leave earlier (PILON))

Is it that simple or can they impose anything else?

Obviously we are free to agree something else but wanted to check the default legal/contract position

PS there are no provisions in my contract regards relocation etc.


Thanks

If that is so then yes, they would have to either let you work your notice or make payment in lieu. However that is unusually long so are you sure?

As you say they could also offer a compromise (e.g 6 months pay for doing nothing or 12 months work doing the most miserable jobs imaginable)!!

Notice pay is taxable, redundancy compensation (up to £30K) is tax free.

Mistermeaner

Hi thanks for your reply 

just re read my contract - it’s actually 6 months notice (not 12)

contract also says I can be required to work anywhere in United Kingdom 

(Apologies for initial incorrect info I got confused with old job)


could they offer me a role in John o groats and avoid paying me the 6months notice if I refuse to move ?


thanks 

Brie

Mistermeaner said:

could they offer me a role in John o groats and avoid paying me the 6months notice if I refuse to move ?
 

this is what my employer did but by refusing to move it meant that those colleagues were accepting redundancy.

it's my understanding that they would need to give you a redundancy payment at least equivalent to the 6 months pay unless their company policy on redundancy provides more.

General_Grant

Brie said:

Mistermeaner said:

could they offer me a role in John o groats and avoid paying me the 6months notice if I refuse to move ?
 

this is what my employer did but by refusing to move it meant that those colleagues were accepting redundancy.

it's my understanding that they would need to give you a redundancy payment at least equivalent to the 6 months pay unless their company policy on redundancy provides more.

I'm not sure what you are saying here, Brie.

Did your former colleagues also have a re-location to anywhere clause?  If they did and refused - so not keeping to one of the terms of their contract - how did that mean they accepted redundancy?

If someone doesn't behave in line with the terms of their contract, they are in breach.

If the company were to pay in lieu of the six months notice, that is not redundancy pay, it is presumably their contractual responsibility.

Andy_L

Mistermeaner said:

could they offer me a role in John o groats and avoid paying me the 6months notice if I refuse to move ?


thanks 

Yes. Although they would have to have a job for you there to transfer to.

Also the move cannot be "completely unreasonable" and you have to "unreasonably refuse" to transfer.

There may also be limits in the contract eg does "required to work" mean temporary jobs or a permanent transfer and may specify relocation expenses that would be more expensive than a redundancy package 

https://www.gov.uk/employer-relocation-your-rights

Andy_L

Mistermeaner said:

hi

my company has recently announced restructuring and my role is at risk of being made redundant

I have been employed here for just over 2 years

my contract contains a clause whereby they have to give me 12 months notice to terminate my contract (and i have to give them 6 months)

Seems pretty cut and dry to me but just wanted to double check that if they want to get rid of me they need to give me that 12 months notice (or pay me the equivalent if they want me to leave earlier (PILON))

Is it that simple or can they impose anything else?

Obviously we are free to agree something else but wanted to check the default legal/contract position

PS there are no provisions in my contract regards relocation etc.


Thanks

They will also need to pay you whatever redundancy payment 2 years service entitled you to. Not much if its statutory (2 weeks pay?) But there may be a contractual right to more