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Advice regarding redundancy

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I am looking for some guidance.    My next choice of action is going to be dictated by the answer to one question.

 

I have worked for my current employer for 13 years.   I am fearful of redundancy.

 

If I am made redundant, where I work has history of making people work the whole notice, which I can understand.    The question I have is, after working the 12 weeks notice, do I then get an extra payment based on my employment time, or did working that notice negate the need for that payment. 

 

The answer to this question really will dictate if I look to jump prior to this happening, as a bit of a payout will mitigate the issues in finding another job quickly - I don't want to act hastily and lose out, but I don't want to wait too long and have opportunities pass me by either, if that makes sense.

 

 

Edited by sko1978

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I recommend you search Google: using 'Redundancy' as search Term:

A primary search brings up

https://www.gov.uk/ calculate employees redundancy payments....

https://www.gov.uk/calculate-employee-redundancy-pay

 

I have personally had the experience of being made Redundant, within An Engineering, Firm however this was prior to the required 2 years to qualify for Redundancy Pay. At the time The then Current (Con) Government had changed the rules from 1 year (with Lab) to Two years now qualifying Period. I was made redundant by an engineering firm just two weeks prior to being there 2 Years,  two weeks prior to Christmas..

Happy Days.....

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Google brings up results that are as clear as mud, thus far - hence me posting in a business forum.

Like you, I have been made redundant before - but also like you that was with far less length of service.

I just can't get to the bottom of the question  - I see people talking of payment in lieu of notice but I don't know if this means if you work that notice you then are done - finito, nothing more.

I always thought you got a redundancy payment but now i'm not sure.

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Try giving ACAS a ring, they’re normally ok for this sort of thing. There are some qualified folk on here if you’re lucky who might stop by.

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Redundancy pay and your notice period  (or being paid in lieu of notice) are separate so you would still be entitled to redundancy pay irrespective. 

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11 hours ago, sko1978 said:

I am looking for some guidance.    My next choice of action is going to be dictated by the answer to one question.

 

I have worked for my current employer for 13 years.   I am fearful of redundancy.

 

If I am made redundant, where I work has history of making people work the whole notice, which I can understand.    The question I have is, after working the 12 weeks notice, do I then get an extra payment based on my employment time, or did working that notice negate the need for that payment. 

 

The answer to this question really will dictate if I look to jump prior to this happening, as a bit of a payout will mitigate the issues in finding another job quickly - I don't want to act hastily and lose out, but I don't want to wait too long and have opportunities pass me by either, if that makes sense.

 

 

You get redundancy pay regardless of whether they expect you to work your notice period or not.

  • half a week's pay for each year of employment up to the age of 22;
  • one week's pay for each year of employment between the ages of 22 and 40;
  • one and a half week's pay for each year of employment over the age of 41;
  • a maximum of 20 years' employment can be taken into account; and
  • there is a statutory maximum limit to a week's pay. This is set annually and is currently £508 per week (as of April 2018).

 

So depending on age, which I'll assume is under 40, you'll get 13 weeks pay.

Companies sometimes chose to not have people work the notice period, but they are still required to pay them, so they would then get 13 weeks pay + pay in lieu of notice, so another 3 months pay in the case of 12 weeks notice period.  They should also include pay for any unused holiday accrued, or the reverse if you've taken holiday then that can be subtracted.

9 hours ago, sko1978 said:



I just can't get to the bottom of the question  - I see people talking of payment in lieu of notice but I don't know if this means if you work that notice you then are done - finito, nothing more.

I always thought you got a redundancy payment but now i'm not sure.

No, you're confusing two issues.  Pay in lieu of notice does not affect your redundancy entitlement.  That's just an option to allow companies to be rid of employees faster without breaking their contractual terms.

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Posted (edited)

The advice given by Cyclone above is correct.  But, check out ACAS as well, as someone has suggested.  You can find a lot of information there which is written in simple language and is easy to understand.  It will help you understand this from both the employer and the employee perspective. 

 

Your dilemma seems to be that you don't know whether to jump ship now or hang on to the time when you are possibly made redundant.  They have to pay you off if they make you redundant.  How much they will pay you depends on their redundancy policy.  That may be harder to find out in some companies than others.  There are statutory minimums they have to pay you though - and you can find that out.  A good employer will pay you beyond the statutory minimum and may also let you take "garden leave" to allow you to look for another job whilst your contract is coming to an end.   A good employer will also be transparent about their redundancy policy so that all staff can work out for themselves what % of pay they will get, based on years of service.

 

Everyone's circumstances are different so I can't advise you what to do - but I can tell you what I did and what influenced my decision.  It came down to weighing up whether it was worth hanging on for the payoff, or changing employment before then.  

 

In the first instance the firm I was working for took over another firm.  All employees were offered voluntary redundancy.  I'd been there about 7 years and I felt their offer was a very good one.  It equated to about a year's salary, tax free.  So I snapped their hand off and 6 weeks later was doing a similar job for one of their major competitors. 

 

I've been in this situation several times.  If the payoff isn't worth much to you and a better opportunity comes up in the meantime I'd take that.  But if you've got some serious dosh coming your way I'd hang on for it.  One other thing you could do is start identifying other companies in your line of work now and start networking there - so your lifeboat is lined up when you need it.  

 

I have been self-employed now for about 9 years.  I lose my job every few months - because I work on fairly short-term contracts.  Unfortunately I don't get paid off for losing my job either!  I do miss that about being employed!  Not much else though!

Edited by DerbyTup

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Cyclones advise is correct - but also check your contract of employment as this will show if you have any enhanced redundancy terms (some companies offer enhanced for voluntary redundancy for instance).

 

Dependent upon the numbers that are being made redundant then they will also be a consultation period.  If the number is 20 or more than the period is 28 days, if 100 or more then it is 90 days.  If less than 20 there is nothing in statute but it has to be "reasonable".

 

Once notice has been served on you, then they may require you to work your notice but you can leave at anytime during that period if you find yourself another job.  You would be forfeiting your right to the remainder of your notice pay but you would still receive your redundancy pay if this was to happen.

 

If they don't require you to work your notice then they will pay in lieu of notice (PILON) and you can get another job once notice has been served with no requirement to forfeit any of the PILON.

 

There are a few more ifs and buts involved but hope with what Cyclone has said and the above gives you the base outline.

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I'm guessing that the OP has probably left their employment given this thread is over 12 weeks old.

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On 29/01/2019 at 21:55, sko1978 said:

I am looking for some guidance.    My next choice of action is going to be dictated by the answer to one question.

 

I have worked for my current employer for 13 years.   I am fearful of redundancy.

 

If I am made redundant, where I work has history of making people work the whole notice, which I can understand.    The question I have is, after working the 12 weeks notice, do I then get an extra payment based on my employment time, or did working that notice negate the need for that payment. 

 

The answer to this question really will dictate if I look to jump prior to this happening, as a bit of a payout will mitigate the issues in finding another job quickly - I don't want to act hastily and lose out, but I don't want to wait too long and have opportunities pass me by either, if that makes sense.

 

 

Whatever you do, do not do anything to jeopardise your current situation by taking time off etc. to give the firm to dismiss you.

Do not rely on hearsay as every redundancy is different in the way it plays out.

First contact you Union rep or local union rep to make sure that they are aware the firm is making people redundant.

Make an appointment with the area Union rep.

Do not under any circumstances speak to anybody,  read any documentation without being provided  without  a copy,  verbally agree or sign any documentation presented to you. 

Find you original contract, any promotions or changes in conditions,  your P60s etc. and makes

 

There are statutory rules and rules negotiated locally(workplace)with your Union.

 

 

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23 hours ago, Annie Bynnol said:

Whatever you do, do not do anything to jeopardise your current situation by taking time off etc. to give the firm to dismiss you.

Do not rely on hearsay as every redundancy is different in the way it plays out.

First contact you Union rep or local union rep to make sure that they are aware the firm is making people redundant.

Make an appointment with the area Union rep.

Do not under any circumstances speak to anybody,  read any documentation without being provided  without  a copy,  verbally agree or sign any documentation presented to you. 

Find you original contract, any promotions or changes in conditions,  your P60s etc. and makes

 

There are statutory rules and rules negotiated locally(workplace)with your Union.

 

 

You are, of course, presuming that he is a member of a union or that the business has a collective agreement for redundancies with the company........

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Posted (edited)

 

17 hours ago, MobileB said:

You are, of course, presuming that he is a member of a union or that the business has a collective agreement for redundancies with the company........

I am assuming that the first step of protecting yourself against unfair redundancy and getting the protection and free legal advice, would have been to have become a member of your trade association, professional association, union, guild etc., years ago. Those are my experiences and therefore the basis of my advice.

 

Edited by Annie Bynnol

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