Years of service

Possible redundancies coming up. Criteria published. What is deemed as a completed year of service. Is it when redundancy announced, when individuals informed, the day you leave if you don't work notice period or is it what would be deemed your redundancy day taking into account notice period.

Ie started work 2nd Jan, consultancy started this week. One to one's next week, likely known persons first week on December.
Therfore 90 notice would make redundancy early March so would that make me entitled to another year of service? What if they don't require us to work notice period.
We also get substantial attendance bonus at Xmas. As thus would be in notice period are we entitled to that?

Comments

  • The company I worked for calculated completed years service up to the date the person left on redundancy; whether they left early during the notice period, or were required to work their full notice.

    So in the example you describe, if your company applies the same rules, then if you left in March that would entitle you to another completed year of service.

    Mind you, I lived through too many redundancy rounds to count in my company. In some instances they'd be quite firm and expect people to complete their notice period. In one round of redundancies, they paid people their notice period and required them to leave more or less straight away (this was in a December and our company year end was December) so they could claim reduced employee numbers at the year end and maximise savings for the next financial year.

    If they didn't require you to work your full notice period they ought to pay you for that, but you wouldn't get the extra year of service notched up.

    As to bonuses - every company has different terms and conditions for their bonus scheme so it's difficult to say. On the face of it, I'd say yes, with a but. My company bonus scheme was pretty good and if you were going on redundancy they'd pay you pro-rata for the part of the year that you'd actually worked up until the point you left. However I would imagine most bonus schemes are conditional and come with some caveats about the company able to afford them; so if the redundancies are for cost cutting they might claim not enough cash to pay them. Or there might be a clause that if you have a leaving date set at the time the bonus is due, they won't be paid. You'd need to check the small print in your employment contract or bonus scheme I'm afraid.
  • Undervalued
    Undervalued Posts: 8,839
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    The company I worked for calculated completed years service up to the date the person left on redundancy; whether they left early during the notice period, or were required to work their full notice.

    So in the example you describe, if your company applies the same rules, then if you left in March that would entitle you to another completed year of service.

    Mind you, I lived through too many redundancy rounds to count in my company. In some instances they'd be quite firm and expect people to complete their notice period. In one round of redundancies, they paid people their notice period and required them to leave more or less straight away (this was in a December and our company year end was December) so they could claim reduced employee numbers at the year end and maximise savings for the next financial year.

    If they didn't require you to work your full notice period they ought to pay you for that, but you wouldn't get the extra year of service notched up.

    As to bonuses - every company has different terms and conditions for their bonus scheme so it's difficult to say. On the face of it, I'd say yes, with a but. My company bonus scheme was pretty good and if you were going on redundancy they'd pay you pro-rata for the part of the year that you'd actually worked up until the point you left. However I would imagine most bonus schemes are conditional and come with some caveats about the company able to afford them; so if the redundancies are for cost cutting they might claim not enough cash to pay them. Or there might be a clause that if you have a leaving date set at the time the bonus is due, they won't be paid. You'd need to check the small print in your employment contract or bonus scheme I'm afraid.

    That would, I think, depend on the contractual position regarding PILON (payment in lieu of notice).

    Strictly speaking, unless there is a contractual clause allowing the company to choose PILON, then they are in breach of contract if they don't allow an employee to actually work their notice.

    In most cases that is a moot point as generally employees are happy to get paid and not have to work! However there are certain situations where they suffer a significant disadvantage by their employment finishing sooner.
  • getmore4less
    getmore4less Posts: 46,882
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    edited 17 November 2018 at 2:58PM
    The date for redundancy is the termination date but can be later if you don't work at least statutory notice.

    Only upto statutory notice count from the date of notice.

    Eg if terminated immediately then full statutory notice gets added.
  • badmemory
    badmemory Posts: 7,587
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    Look at the terms of your bonus. Where I used to work we had a quarterly bonus but with the bulk paid at the end of the year. The T &Cs said that the bonus was paid in the following month, so Dec bonus was paid at the end of Jan, BUT was only paid if you hadn't handed your notice in. So if you wanted your bonus then you didn't resign until 1st Feb.
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