Odd question

Currently we’re a company that are contracted to provide a service. However, due to the loss of a large account I’m being made redundant at the end of the month. My redundancy package was finalised towards the end of May, but the account we’ve lost have now asked if I could stay on for one year and have asked my company to act as an agent. I was under the impression that I’d still get my redundancy as I’d be leaving the company on the Friday and then restarting on the Monday as new starter. My accounts department are now saying if I take this year role, then I forfeit my redundancy.

Has anyone ever heard of a similar situation and how/what was true?

Comments

  • p00hsticks
    p00hsticks Posts: 12,673
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    This may help
    http://workplaceinfo.com.au/termination/redundancy/q-a/re-employment-after-redundancy-is-it-allowed#.Wxj1oSAh200


    If you are being kept on in the same role then you're not being made redundant, and so you don't get a redundncy payment


    It might be worth asking if you could be TUPE'd over to the new company if that would be better for you ?
  • Ozzuk
    Ozzuk Posts: 1,884
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    Trouble is if you TUPE across then the new company will be liable for future redundancy (they may be fine with that). By asking your company to act as an agent sounds like the customer is trying to avoid TUPE liability, and it sounds like its just a service renegotiation - to a resource based contract instead of a service based contract.

    If you cut out your existing company and take a new contract direct with the customer, if your old employer finds out they will likely say its a TUPE avoidance situation and it could open you/customer up to legal action.
  • getmore4less
    getmore4less Posts: 46,882
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    LukeMAN wrote: »
    Currently we’re a company that are contracted to provide a service. However, due to the loss of a large account I’m being made redundant at the end of the month. My redundancy package was finalised towards the end of May, but the account we’ve lost have now asked if I could stay on for one year and have asked my company to act as an agent. I was under the impression that I’d still get my redundancy as I’d be leaving the company on the Friday and then restarting on the Monday as new starter. My accounts department are now saying if I take this year role, then I forfeit my redundancy.

    Has anyone ever heard of a similar situation and how/what was true?

    https://www.legislation.gov.uk/ukpga/1996/18/section/141

    If you accept a suitable alternative before you leave there can be a break till the new job starts of up to 4 weeks, then it is no longer a redundancy.


    If existing employer) have made the offer then it may be if you refuse they can withdraw the redundancy.
  • Thanks for the replies.

    It’s been such a headache! How can a massive corporation not approve head count for staff they need? Baffles my mind. Anyway, I’ve spoken to my boss and since the redundancy money was transferred already, it’ll need to be paid to me as a bonus. My concern with that is I may fall into a higher tax band without even noticing!
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