# Redundancy



## dazzler (Feb 12, 2003)

Any HR / legal people out there?

Been made redundant after 13 years , the company are offering 1 week per year in compensation but are offering the government standard rate of around Â£240 / week is this correct or can I fight it?

Help please as I feel they are taking the piss.

Only my department is shutting down, not the whole company. Therefore I dont think they can offer the minimum as the company is still in a trading state.

Any help appreciated.

Cheers

Darren


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## jampott (Sep 6, 2003)

try and find the contract of employment you signed, as this is the deciding factor.

also find out if anyone else recently has been made redundant and try and find out about their package too....


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## chip (Dec 24, 2002)

yep, think that sounds about right, anything extra on top is down to Co. discretion. I'll double chk with my friend later tonight (Director of HR at my Co.). If your contract states u get X guaranteed bonus, they would be payable too. Also check your pension contributions and see if they are worth transferring to new employer or whether to leave it as it is (if so, find out the contact/address, and keep an eye on your old company in case of mergers or takeovers. You'll be surprised how many people forget about their early pension contributions).

If you have share options, check with your HR/Compensation Dept whether you can hold onto them or have to sell, also chk tax implication etc....

Lastly, since your Co. is so tight by giving you the min stat. payout, I wouldn't be surprised if given half the chance, they would dismiss you for the most petty thing to avoid any payout at all. So, don't be late for work, take 2 hours lunchbreaks etc.. however, p*ssed off you feel.

If you want specific info., I can put you in touch with my HR Director.


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## chip (Dec 24, 2002)

Dazzler
just spoke with my HR mate. Yep, the Co are legally within their rights to pay you 1 week per year (min 2 years service to qualify, but since you have 13 years..) She was pretty shocked how tight your Co is though.

The weekly amount payable are banded according to age. She cannot remember the exact bandings, but if you are 30+ you should get the max allowance (looks like Â£240 in this case).

If you do get a guarantee bonus, chk wording on your contract. If it's doesn't mention the wording pro-rata or something similar, they will be pushed NOT to pay you the full amount.

Also, chk if they offer outplacement consultants services. This is not obligatory, but some firms do offer this additional service to soften the blow.

Your firm should have an employee policy/guide, get hold of this (any decent firm would have this freely available to employees) and understand your rights. Any doubts, you can verify with CAB. If not, I will be happy to you you in touch with my HR Director.


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## woracle (Nov 10, 2002)

Sorry to hear it Dazzler. My company just made 45% of the office redundent in London, and Â£240 is correct - statutory minimum. At least its tax free. :-/ But most companies policy is better. Tight-fisted gits.

Also there is a minimum notice period which I believe is one week for every year you have worked. So in your case, they MUST give you 13 weeks notice on full pay and benefits ( or your notice on your contract whichever is the greater ). Of course a lot of companies let you go on gardening leave for that period.

If the proportion of redundancies is high, there is a 1 month consultation period where officially your position is under threat, but not you. Many of my colleagues are going through it now. If you need to know what thats all about, I can tell you via their experience.

Good luck.


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## woracle (Nov 10, 2002)

This might explain things a bit better..

http://www.compactlaw.co.uk/monster/empf25.html


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## woracle (Nov 10, 2002)

> Also there is a minimum notice period which I believe is one week for every year you have worked. So in your case, they MUST give you 13 weeks notice on full pay and benefits ( or your notice on your contract whichever is the greater ). Of course a lot of companies let you go on gardening leave for that period.


Sorry, only up to 12 years counts. If they don't sue them for wrongful dismissal..


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## garyc (May 7, 2002)

My co pays 1 MONTH per years continuous service, plus 3 months in lieu. I don't think this is anything but voluntary though.

My advice: find a decent employment lawyer - not a generalist good solicitor who's done your conveyancing! Spend an hour with him/her going through everything that pertains to your good service and performance (appraisals, feedback, commendations etc). Then request a 1 hour meeting between you, your lawyer, your HR manager and your manager. Go through all 'good service' stuff and suggest they up the ante since such meaness really reflects badly on the company (this implies public relations and poor press coverage - which any company will avoid). Further push the unfairness angle. On a personal note play down chances of finding new position and add personal and family stress etc. The lawyer also needs to find something irregular - even if it is just a question of process - this is not as difficult as it sounds since all processes (legal and company policy) should be fully documented and must be adhered to for redundancy to be legal.

Will it work? Well, my wife got made redundant last Oct after 5 years service with a large IT co. Company was offering 3 months plus 1 month per year. Because she was treated poorly and company got out of process, we did the above. Result? They chucked in an extra 6 months as a 'compromise' (dont know if that is a legal or a corporate HR term) agreement.

14 months salary, first 30 grand is tax free. Nice. They also paid the legal consultation costs and of course applied a gagging order.

This may cost you 250-500 quid, but it is worth it. It is unaggressive to the company and avoids any threatening legal action.

Be aware that the maximum award an Industrial Tribunal can make is 50 grand. That is why it was better for many to mediate with legal representation.

HR HATE it when you turn up with a fully briefed lawyer. They will genarally go further in financial recompense to avoid legal confrontation. The publicity costs too much.

Good luck.


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## simonm (May 8, 2002)

> Well, my wife got made redundant last Oct after 5 years service with a large IT co.


Ditto, not same co. but another big name.



> HR HATE it when you turn up with a fully briefed lawyer. They will genarally go further in financial recompense to avoid legal confrontation.


This is exactly what my solicitor told me. They will offer a bit more cash to shut you up, but push it too far and you will have a full scale fight (and costs) on your hands.



> and of course applied a gagging order


This is common practice with large firms, although my solicitor advised that these are still only 95% watertight if you realy wanted to push it.

Your company does sound mean, but was well chuffed when I found out how much my old firm was going to cough up. But remember they are almost certainly making you redundant to cut costs / increase profitability - so maybe then genuinely don't have the money to offer averyone. It is still better than the firm going into liquidation...

good luck with it all.

Simon


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## vlastan (May 6, 2002)

In large corporates the Unions normally achieve better redundancy terms.

If there is no Union to assist, you normally get what is the minimum legal level, which is very small.

All the best Dazzler.


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## dazzler (Feb 12, 2003)

Many Thanks all, for the info and advice. Will be seeing HR tomorrow to discuss their offer, better be good or I will be taking up the lawer route.

Already taken 2 of their clients with me so in the long run they will loose out.


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## garyc (May 7, 2002)

> Many Thanks all, for the info and advice. Will be seeing HR tomorrow to discuss their offer, better be good or I will be taking up the lawer route.
> 
> Already taken 2 of their clients with me so in the long run they will loose out.


Don't get caught luring away punters. :-/ They can contact you and follow of their own accord - but any hint of enticement on your part may lead to your Co withdrawing ANY redundancy.

Beware. there be dragons etc.


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