Just lost my job on the day of contract exchange for first house

Scotbot

If they are making fewer than 20 people redundant all they have to do in the consultation is tell you that they are doing it which is effectively what the call today was. The term consultation is misleading. Statutory pay is 2-3 weeks depending on age and whatever notice period is in the contract or another 2 weeks. So in effect s o d all. I know this because I work for a US company which is also laying people off so have checked

Schwarzwald

Gavin83 said:

Herzlos said:

That's not how it works int the UK - you need to be given notice and consultation. So I wouldn't tell anyone regarding the house move because legally the redundancy hasn't happened yet.

I'm quoting you as it was the closest post but several people have pitched this but is it true? Are employment laws based on the country the employer is based in or the employee? Logically it seems to me it would be based on the employers location and the location of the employee is largely irrelevant. If employers had to follow the employees local employment laws then I very much doubt any company would bother hiring someone abroad.

Besides, even if it was true they had to follow UK employment laws how would you even enforce it? You couldn't take them to court in the UK, they have no jurisdiction over the US and in all honesty the company wouldn't turn up and you'd have no way of enforcing any outcome of the case. I also suspect you'd struggle to take a US company to a US court to uphold British employment laws that don't exist in the US.

I'd be very surprised if you chose to get a job with a foreign company that their local rules didn't apply. I'm also actually quite surprised the bank didn't have a problem with the foreign employment from the start.

In answer to the question at hand I agree with some of the others. In your shoes I just wouldn't say anything and let the sale go through. The other option, assuming you haven't yet exchanged is to pull out. You'll only lose the money you've already spent (presumably a few thousand) but it is certainly a kick in the teeth of your vendor and of course you'll lose the house. If you have exchanged then you should 100% keep quiet. That includes not telling the solicitor.

long story v short: yes local employment law applies. period.

housebuyer143

Scotbot said:

If they are making fewer than 20 people redundant all they have to do in the consultation is tell you that they are doing it which is effectively what the call today was. The term consultation is misleading. Statutory pay is 2-3 weeks depending on age and whatever notice period is in the contract or another 2 weeks. So in effect s o d all. I know this because I work for a US company which is also laying people off so have checked

Yes, but they are all required to give notice and the "consultation period" apples. So OP is losing their job but they will still be entitled to notice pay, pay for holidays due and time worked, plus any redundancy coming their way.

Schwarzwald

StevenwithaPH said:

I'm still shaking.

I work for an American company, but I live in the UK. I've been there for almost 3 years.

Earlier this morning (9am), our solicitor called and said they're hoping to get contracts exchanged today, with plans to then agree on a move-in date for about a week or so.

I started my work day and around 12, I notice a meeting has been chucked on my calendar with some random people I've never spoken to - C-level. Come 1 pm, I join the meeting and get told I'm being let go, basically effective immediately. I can't join team calls or do anything - I've been locked out. 

I've been sent some documents that I need to sign and return within a week or so but I'm pretty sure I need to tell the bank that my circumstances have changed? My wife's pay will be enough to cover the mortgage and bills and we have a few months of savings to cover everything else.

The situation is dire. We've saved for 8 years, put down 20% deposit and I fear we're going to lose it all. I don't know what to do. I need to speak to the bank but I don't want to hear the news that I'm dreading they will deliver. My chest hurts too much.

tough one ... i probably had asked my solicitor to delay exchange by 1-2 days, discuss wtih my partner, sleep over it for 1-2 nights, and then take a final call. I would not even tell the solicitor nor the broker, both might have a fiduciary duty to tell the Lender, at least the solicitor has i believe. and i guess any lender would like to reunderwrite the mortgage case given the change in circumstances, especially in this environment, once they know, they will need to act on it, and i cant see a mortgage UW just ignoring such a significant update from the borrower.

if i were to go ahead would depend on so many factors, incl your partners income and job security and also your own re-employment prospects, major difference if you believe it will take you 1 month or 1 year to find a new job

good luck, tough one, not wishing on anyone

Scotbot

housebuyer143 said:

Scotbot said:

If they are making fewer than 20 people redundant all they have to do in the consultation is tell you that they are doing it which is effectively what the call today was. The term consultation is misleading. Statutory pay is 2-3 weeks depending on age and whatever notice period is in the contract or another 2 weeks. So in effect s o d all. I know this because I work for a US company which is also laying people off so have checked

Yes, but they are all required to give notice and the "consultation period" apples. So OP is losing their job but they will still be entitled to notice pay, pay for holidays due and time worked, plus any redundancy coming their way.

True but that will total around 2 months salary at a reduced tax rate so probably the equivalent of 3 months pay. Financially it all comes down to whether the wife can cover living costs until OP gets another job.

elsien

housebuyer143 said:

As above, you need to go through the redundancy process in the UK which at a minimum is a notice period, redundancy pay if over 2 years at the job.

In your shoes I wouldn't tell anybody and press on. It's not worth losing your deposit.

The OP doesn’t specifically say it’s redundancy. They may have been let go for other reasons. It’s unusual to be locked out immediately just like that. So they need to clarify whether it is redundancy or not for proper advice to be given around the HR side of things. 

Some of the replies are presuming a situation that may or may not be the case.

BobT36

Unless been sacked immediately due to Gross Misconduct or whatever, if just been laid off or had contract terminated, you're still "fully employed" until your contractual notice has expired, plus any additional redundancy notice (if applies). 

You may have been "sent home" early (gardening leave) but are still "employed" until all the notices expire and you get your final payment. 

Therefore, keep head down and get the sale out of the way ASAP (unless you can't afford it!) while you're still "employed". . 

MultiFuelBurner

elsien said:

housebuyer143 said:

As above, you need to go through the redundancy process in the UK which at a minimum is a notice period, redundancy pay if over 2 years at the job.

In your shoes I wouldn't tell anybody and press on. It's not worth losing your deposit.

The OP doesn’t specifically say it’s redundancy. They may have been let go for other reasons. It’s unusual to be locked out immediately just like that. So they need to clarify whether it is redundancy or not for proper advice to be given around the HR side of things. 

Some of the replies are presuming a situation that may or may not be the case.

In today's security conscience world it is normal in many industries to be locked out upon given first heads up of redundancy and you sit out your notice on the bench without access unless they need you.

Gavin83

Schwarzwald said:

Gavin83 said:

Herzlos said:

That's not how it works int the UK - you need to be given notice and consultation. So I wouldn't tell anyone regarding the house move because legally the redundancy hasn't happened yet.

I'm quoting you as it was the closest post but several people have pitched this but is it true? Are employment laws based on the country the employer is based in or the employee? Logically it seems to me it would be based on the employers location and the location of the employee is largely irrelevant. If employers had to follow the employees local employment laws then I very much doubt any company would bother hiring someone abroad.

Besides, even if it was true they had to follow UK employment laws how would you even enforce it? You couldn't take them to court in the UK, they have no jurisdiction over the US and in all honesty the company wouldn't turn up and you'd have no way of enforcing any outcome of the case. I also suspect you'd struggle to take a US company to a US court to uphold British employment laws that don't exist in the US.

I'd be very surprised if you chose to get a job with a foreign company that their local rules didn't apply. I'm also actually quite surprised the bank didn't have a problem with the foreign employment from the start.

In answer to the question at hand I agree with some of the others. In your shoes I just wouldn't say anything and let the sale go through. The other option, assuming you haven't yet exchanged is to pull out. You'll only lose the money you've already spent (presumably a few thousand) but it is certainly a kick in the teeth of your vendor and of course you'll lose the house. If you have exchanged then you should 100% keep quiet. That includes not telling the solicitor.

long story v short: yes local employment law applies. period.

I assume you mean the laws local to the employee rather than the employer. Therefore I’ve got a few questions:

1) If your statement is true I would assume it also works in reverse. So if I had a British employer and chose to move to the US then my employer could choose to follow the (frankly worse) US employment laws and give me less holiday, sick pay, redundancy, etc?

2) Repeating my previous question how do you enforce your employment rights against a foreign based company that doesn’t operate in any way in the UK?

Scotbot

Gavin83 said:

Schwarzwald said:

Gavin83 said:

Herzlos said:

That's not how it works int the UK - you need to be given notice and consultation. So I wouldn't tell anyone regarding the house move because legally the redundancy hasn't happened yet.

I'm quoting you as it was the closest post but several people have pitched this but is it true? Are employment laws based on the country the employer is based in or the employee? Logically it seems to me it would be based on the employers location and the location of the employee is largely irrelevant. If employers had to follow the employees local employment laws then I very much doubt any company would bother hiring someone abroad.

Besides, even if it was true they had to follow UK employment laws how would you even enforce it? You couldn't take them to court in the UK, they have no jurisdiction over the US and in all honesty the company wouldn't turn up and you'd have no way of enforcing any outcome of the case. I also suspect you'd struggle to take a US company to a US court to uphold British employment laws that don't exist in the US.

I'd be very surprised if you chose to get a job with a foreign company that their local rules didn't apply. I'm also actually quite surprised the bank didn't have a problem with the foreign employment from the start.

In answer to the question at hand I agree with some of the others. In your shoes I just wouldn't say anything and let the sale go through. The other option, assuming you haven't yet exchanged is to pull out. You'll only lose the money you've already spent (presumably a few thousand) but it is certainly a kick in the teeth of your vendor and of course you'll lose the house. If you have exchanged then you should 100% keep quiet. That includes not telling the solicitor.

long story v short: yes local employment law applies. period.

I assume you mean the laws local to the employee rather than the employer. Therefore I’ve got a few questions:

1) If your statement is true I would assume it also works in reverse. So if I had a British employer and chose to move to the US then my employer could choose to follow the (frankly worse) US employment laws and give me less holiday, sick pay, redundancy, etc?

2) Repeating my previous question how do you enforce your employment rights against a foreign based company that doesn’t operate in any way in the UK?

Yes to Q1 unless you are an expat who retains a UK contract. Generally speaking though if you move overseas any job you take is subject to local terms and conditions which may be better or worse
In answer to Q2 you politely point out in writing that they are in breach of UK employment law. I had to do that with my current US employer. They have a handful of UK employees and a US HR manager. Being American I find the fear of litigation means they comply with any errors once pointed out