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Redundancy calculations with 2 contracts. Which start date?
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ChasingtheWelshdream
Posts: 938 Forumite


Can anyone help with how a redundancy settlement would likely be calculated in this situation please? Is there a 'cut and dried' answer, or is it open to interpretation and worth arguing for?
Local government with a reckonable (continuous) service date of 2008 under the Modification Order. Start date with the current employer in 2018. I have had various roles, all consecutive, with my current substantive started in 2021.
In 2023 I started an additional zero hours contract with the same Local Authority, but a completely different service area. The role is completely unconnected and provides 2-3 hours max work a month. I do not wish to step down from this position.
In a redundancy situation from my substantive role, should the settlement be calculated from 2008 for my whole service, or only from 2021 for that contract?
I had assumed it would be 2008, but I have since read an online article which states that in the case of multiple contracts, redundancy only needs to be calculated from the start of the contract affected.
The LA also operate a policy preventing a return to employment within 12 months of redundancy where a settlement was paid. Does my zero hours contract mean I forfeit any settlement at all?
I do have representation from a union who say my situation could be complicated but I await a firm answer from HR and official consultation has not yet started.
The difference between 4 and 17 years payment is rather significant. If the former, I may well simply jump ship for pastures new without the shenanigans of restructuring. If 17 years, I would apply for voluntary redundancy.
Local government with a reckonable (continuous) service date of 2008 under the Modification Order. Start date with the current employer in 2018. I have had various roles, all consecutive, with my current substantive started in 2021.
In 2023 I started an additional zero hours contract with the same Local Authority, but a completely different service area. The role is completely unconnected and provides 2-3 hours max work a month. I do not wish to step down from this position.
In a redundancy situation from my substantive role, should the settlement be calculated from 2008 for my whole service, or only from 2021 for that contract?
I had assumed it would be 2008, but I have since read an online article which states that in the case of multiple contracts, redundancy only needs to be calculated from the start of the contract affected.
The LA also operate a policy preventing a return to employment within 12 months of redundancy where a settlement was paid. Does my zero hours contract mean I forfeit any settlement at all?
I do have representation from a union who say my situation could be complicated but I await a firm answer from HR and official consultation has not yet started.
The difference between 4 and 17 years payment is rather significant. If the former, I may well simply jump ship for pastures new without the shenanigans of restructuring. If 17 years, I would apply for voluntary redundancy.
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Comments
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You need to check your letter of engagement and Ts and Cs for the zero hour/casual role as they don't usually offer any employee benefits in terms of sick pay, pension or count towards service for redundancy. It also isn't classed as Local Government service as you aren't a permanent employee,
I have done election duties and it was just a payment for the work I did, I was not an employee of the council.
As regards your permanent roles more detail is needed in terms of the organsations you have been employed by. As you mention modifcation order has your council been abolished since 2008 and you are now employed by one of the new councils which has been set up to replace it or did you move council completely?0 -
Thank you. To address your questions:I moved from a different council and my reconcilable service date is confirmed on my employee records as I did not have a break-in-service. Each time I have moved to a new role within this council, my contract states my start date, and my reckonable service date.
The zero hours (casual-by-claim) contract is identical to my substantive except for the working hours and pay section, which simply explains the hours are to be paid by claim, with no requirement to accept or be offered works. I have the same payroll number, one wage slip with both positions. I pay pension contributions on both, albeit at different rates due to the different pay grades. The casual contract also uses the 2008 date to calculate my holiday pay, according to how many hours I work each month. (Enhanced for 5+ years). I can claim my holiday pay as and when I wish.
( I also do election duties but that is a separate payroll as you describe, for the specific elections only. )
Does that help or hinder things?
If I had not taken on the casual contract, my redundancy would be calculated from 2008. It seems this extra few hours I claim, could now scupper that?0
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