Redundancy

I have recently received notice of redundancy from my employer of 10 years.  The notice states that I am entitled to receive 10 weeks notice, which I am not required to work.  I will continue to be paid basic pay to the end of the notice period. 

I have been offered new employment but the Company cannot hold the position for me until my notice expires. 

Could you tell me whether I would jeopardise my statutory redundancy entitlement if I were to accept an offer of employment and start a new job before my notice expires?  Although 10 paid weeks off work sounds good, postponing job applications until toward the end of the notice period will make things very stressful for my family. Any advice would be appreciated.

Nails13,   From an employers

Nails13,

 

From an employers point of view and in line with legislation regarding redundancy, this is what we would advise your employers to do.

 

We would advise clients that if they are making someone redundant and not requiring them to work the notice period that you would pay in lieu of notice – this then means the finish date is the last day worked and that they get paid a lump sum payment for their entitlements.

 

We would not suggest that they tell the individual they have to wait until the 10 weeks is up as it shouldn’t have been imposed in such a way – they will also be entitled to all redundancy pay as normal which again should have been paid at the point the employee finished.

 

I hope this helps you.

 

Lee

I work at Peninsula Business Services Limited, who have 24,000 businesses already intergrated to work as part of their HR and Health an Safety functions. For further help contact me on 01618279918 or email lee.garside@peninsula-uk.com ref TLF01

Profile: Assistant to consultant for an employment law firm.

Thank you for your

Thank you for your comments.  I wish my employer had done things the way you mention.  I am weekly paid and I will continue to be paid weekly until my notice expires at the beginning of June.  At that point, my employer will pay me my statutory redundancy pay. I really don't want to lose my redundancy pay but at the same time I need to be able to secure a new job.  Any suggestions?

Your notice should not affect

Your notice should not affect your entitlement to a statutory redundancy payment; however it may affect the calculation of the redundancy payment if your length of service rolls onto another complete year during the 10 weeks’ notice. Statutory redundancy entitlement is calculated based on the number of complete years you have been employed.

 

It appears that your employer has placed you on garden leave. You may wish to check your contract of employment to see whether your employer has included the contractual right to place you on garden leave. If there is no such provision, you could try to argue that your employer has no right to place you on garden leave, however your employer may demand that you work your notice out with them in the office instead which may not be an attractive alternative if you are hoping to commence a new job now.

 

You should also check your contract to see whether your employer has the right to pay you in lieu of notice (PILON), instead of requiring you to work out your notice. You may be able to negotiate with your employer to have your garden leave changed to PILON in this regard. Please note that some employers require staff to serve out notice on garden leave in order to protect their business against the poaching of clients/customers/suppliers; if this is the case here, you are less likely to be able to negotiate any notice period in this regard.

 

Unfortunately, if you refuse to work your notice or else to serve the same on garden leave, you will be in breach of contract. However, you may wish to consider approaching your employer to see whether they would be willing to “compromise” your notice period – this would typically involve you signing a compromise agreement to formalise the arrangement. This could be an appealing option to your employer as they could save themselves a substantial amount of money if you are willing to waive part or all of your notice in this regard.

 

De Marco Hunter Solicitors
Employment Law Specialists

www.demarcohunter.com
Tel: 024 7621 4440

Profile: De Marco Hunter Solicitors are specialist Employment Law Solicitors. We advise on: •Compromise Agreements •Unfair Dismissal •Restrictive Covenants •Employment Tribunal Proceedings •Redundancy and General Employment Law matters We offer a free initial consultation.

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