Redundancy Insurance Claim after Settle Agreement

AndyJ23

Hi all

I'm in the process of being made redundant and requesting a 'Settlement Agreement'. I have a stong case for unfair dismissal and will use this for the reason of requesting the settlement agreement.
I have redundancy insurance cover that covers me for redundancy but I'm wondering how this be affected if a settlement agreement is reached. Is this still classed as being made redundant? Would the insurance still pay out?

I have had consultation meetings with my employer and they do intent to make me redundant.

Many thanks for your advise in advance.

A

DullGreyGuy

You need to read the terms of your policy both for if it's covered and, given you dont have a notice period with a settlement agreement, how the policy responds to the effective payment in lieu. Certainly some policies will cover it but the deferment period may only commence when your notice period would have ended had you not taken the settlement. 

AndyJ23

Thank you DullGreyGuy.

My policy terms state the following:

"Payment in Lieu Of Notice

Any payment you receive that relates to the notice period you should have served under your contract of employment. If you were contracted to have a lieu of notice period but this was renegotiated in a settlement agreement, we will use the period of notice you should have served as stated in your contract of employment".

It does sound like I will be covered in the event of a settlement agreement, but would have to wait the notice in lieu before the insurance company begin to py me.

A

400ixl

Do you mean you are trying to get a settlement payment for you to leave the business via a route other than redundancy? As in by mutual agreement?

If they do not class the reason for leaving as by redundancy, then it may not be covered.

If you mean that they are goign to make you redundant and you are negotiating the terms of that redundancy, then yes that will be a case of being made redundant. The payment in Leiu of notice would still need to be under the remit of redundancy and is for any contractual terms such as notice periods. The redundancy payment is a different consideration than leiu of notice.

Wonka_2

@andyj23 is there any reason why you're angling for settlement agreement rather than redundancy ? Holding them to ransom re a potential unfair dismissal claim may leave them fancying their chances and holding you to the bare minimum of redundancy payments

AndyJ23

Hi -

The reason for seeking a settlement agreement was to simply gain a better redundancy package. I could just as easily request a 'without prejudice' meeting to ask for a better redundancy pay deal. So far, I have been advised that I will only receive statutory redundancy pay and my notice (which they want me to work).

Due to their reasoning of the redundancy, I feel that it is unfair and if a better redundancy deal is not forthcoming, I will pursue a case for unfair dismissal.

PLease advise.

Many Thanks

A

DullGreyGuy

AndyJ23 said:

Thank you DullGreyGuy.

My policy terms state the following:

"Payment in Lieu Of Notice

Any payment you receive that relates to the notice period you should have served under your contract of employment. If you were contracted to have a lieu of notice period but this was renegotiated in a settlement agreement, we will use the period of notice you should have served as stated in your contract of employment".

It does sound like I will be covered in the event of a settlement agreement, but would have to wait the notice in lieu before the insurance company begin to py me.

A

Certainly the PILON clause is there.

You also need to look at the other clauses, some unemployment insurance covers anything other than gross misconduct whereas others its strictly limited to involuntary redundency 

Wonka_2

AndyJ23 said:

Due to their reasoning of the redundancy, I feel that it is unfair and if a better redundancy deal is not forthcoming, I will pursue a case for unfair dismissal.

PLease advise.

Many Thanks

A

Without more details there's not much advice that can be given - irrespective of your view of 'unfair' there's a big difference between someone on a £20k salary with 2yrs service and a £50k salary with 20yrs service and the reasons for leaving

Given they're only offering statutory terms and expecting working of notice they either think they've a solid case or they're watching the money. The other alternative is that they're incompetent allowing your to win your case - being an employee you must know their record of behaviour in previous cases

AndyJ23

Thanks again guys -

The PILON is fine by me. Even if i didn't have to work my notice, I would still have to wait until it expired before being paid by the insurer.

Just to clarify. I am being made redundant.

I'm looking for an ex-gratia payment.

Wonka_2, Without giving too much away, I'm nearing the higher leverl of salary and service.

They've done this a quite a number of employees over the years but because of NDA's nothing is ever known.

I'm in t he process of writting a 'without prejudice' letter to set my stall out.

Wish me luck

A

lincroft1710

You can only be made redundant if the job you do ceases to exist, or the employer no longer needs as many people to do a particular job.