Redundancy Payment and Re-Hiring

emploee_77

Hi,

I was terminated on 10th June and I will shortly receive a redundancy payment equivalent to seven months pay, all of which is tax exempt. I applied for and have been successful in being accepted for a new role within the company but I would be returning as a re-hire in September/October. I didn't think this was allowed but apparently it is as the role is not my old role. My question is, what happens to my redundancy payment?

Thanks in advance.

Hoenir

You keep it. 

Brie

It will depend on the T&Cs set out in the redundancy. 

What I've seen most often is that some of it needs to be paid back based on how long you are unemployed.  So if you were to return to work for them as of 11 September that would be 3 months since your redundancy so they may expect you to give back 3/4 of the redundancy payment as you have only been out of work for 1/4 of the year.  

But it could say that because it's a different division/department/role it's irrelevant.  Alternatively I did see someone come back on a short term contract to finish a project without any penalty.  That one was down to negotiation between a desperate manager and a very confident (former) employee.

[Deleted User]

emploee_77 said:

Hi,

I was terminated on 10th June and I will shortly receive a redundancy payment equivalent to seven months pay, all of which is tax exempt. I applied for and have been successful in being accepted for a new role within the company but I would be returning as a re-hire in September/October. I didn't think this was allowed but apparently it is as the role is not my old role. My question is, what happens to my redundancy payment?

Thanks in advance.

As Hoenir says it is yours to keep. 

While a person ultimately is most affected it is the job/position which becomes redundant. 

silvercar

Depends on the company policy. I know somewhere that only lets you keep the amount that you would have been paid up to the point you return. So 6 months redundancy, return to a new role after 3 months and you "lose" 3 months of the redundancy payment. This is a big organisation, so would expect it isn't that unusual.

I've just looked it up, there is a clause in the employment contract: 

".... you are entitled to a severance payment calculated in accordance with paragraph XX. This is subject to your agreement that should you be reappointed as a [job title]  you will repay your severance pay less the amount of salary you would have been paid had you been employed during the period between the termination of your previous contract and your re-appointment on a fresh contract."

emploee_77

silvercar said:

Depends on the company policy. I know somewhere that only lets you keep the amount that you would have been paid up to the point you return. So 6 months redundancy, return to a new role after 3 months and you "lose" 3 months of the redundancy payment. This is a big organisation, so would expect it isn't that unusual.

I've just looked it up, there is a clause in the employment contract: 

".... you are entitled to a severance payment calculated in accordance with paragraph XX. This is subject to your agreement that should you be reappointed as a [job title]  you will repay your severance pay less the amount of salary you would have been paid had you been employed during the period between the termination of your previous contract and your re-appointment on a fresh contract."

I've asked about this and it doesn't appear to be a policy. Within the redundancy contract, my solicitor has noted that it's not mentioned there either.

Hoenir

Recalling your other thread. Wasn't the new potential role in a different sphere and subject to screening and also a probation / trial period.  This for all intents and purposes be new employment. With no continuity of service provision. 

emploee_77

Hoenir said:

Recalling your other thread. Wasn't the new potential role in a different sphere and subject to screening and also a probation / trial period.  This for all intents and purposes be new employment. With no continuity of service provision. 

Yes, continuation of service would have meant no enhanced redundancy and a four week trial period at the end of which I could have been dismissed without a reason.

Re-hire allows me to take the enhanced redundancy and return as a new employee.