Redundancy and a new job in the same sector?

Gompo

Hi.

Apologies for perhaps a stupid question.

I've been made redundant this week as my employer is now insolvent. I'm optimistic I'll receive a redundancy payment in the next 8 weeks or whatever it is (hopefully sooner!). 

'I've been told' that I may not be able to get a new position in the same or similar role/sector with a new employer for a set time or it may effect my redundancy? Is this true? Or if I register as self employed and have a short term contract doing similar work? I've tried to look online but can't see anything particular. 

Thanks in advance, Greg.

400ixl

Who has told you that?

Even if there were anti compete clauses in your current contract there is no one to impose them if they are insolvent.

There is no general law that restricts your rights to employment.

Crack on and good luck in the job search.

YBR

In some industries it is common to put these quarantine periods in contracts if you're recruited by a competitor so that you don't take the first employer's clients over to that competitor. I've also heard of them used following a disciplinary issue but I don't know the details of that occasion

.

It doesn't apply following redundancy, and can't be enforced by the insolvent company anyway.

Gompo

400ixl said:

Who has told you that?

Even if there were anti compete clauses in your current contract there is no one to impose them if they are insolvent.

There is no general law that restricts your rights to employment.

Crack on and good luck in the job search.

Thanks for the reply - It was talked about by a now ex-colleague but somebody I'd expect to be reasonably informed. 

There's been some confusion in the workforce between a normal or voluntary redundancy and that of a company going insolvent. Obviously it's all a bit sudden with people doing a quick search and spouting inaccurate information. I suspect somebody has read about taking redundancy and then going back to the same company in a similar; which I know is dodgy.

Thanks for the well wishes, there's a possibility some of the ex-company's work/contracts will be fulfilled by another local company, so I'm hoping there's an avenue there even if just temporary.

Gompo

YBR said:

In some industries it is common to put these quarantine periods in contracts if you're recruited by a competitor so that you don't take the first employer's clients over to that competitor. I've also heard of them used following a disciplinary issue but I don't know the details of that occasion

.

It doesn't apply following redundancy, and can't be enforced by the insolvent company anyway.

Thanks. Yes I think it's general confusion and hearsay - However I didn't want to risk anything, my redundancy should theoretically be in excess of what I'd earn in a month or so were I to find another position. 

LeafGreen

The first £30k of redundancy is tax free.  If you go back to the same employer then there would be issues with that, maybe that is what whoever you have been speaking to is thinking of?  No problem if moving to another employer.

General_Grant

LeafGreen said:

The first £30k of redundancy is tax free.  If you go back to the same employer then there would be issues with that, maybe that is what whoever you have been speaking to is thinking of?  No problem if moving to another employer.

And statutory redundancy monies wouldn't be affected even if there were a swift return to the same employing organisation.