Any Employment Law specialists?

[D_T_W]

I need some questions answered regarding redundancy.

Can somebody give me an idea of the redundancy prcedure for an employee who has worked at a company for 15 months?
I got pulled in yesterday to be told there was a likely chance i will be made redundant fairly soon, i just need to know what my rights are regarding redundancy payment (if any), what notice period they can give.
It wasn't made clear if i was the only person to be made redundant, it's a fairly large company (around 700 employees), but there has been no real mention of redundancys anywhere else.

Just trying to find out where i stand as i'm supposed be be having another meeting on Monday regarding what my options are.

Be much obliged for any help anybody could give

Edited by D_T_W on Friday 8th February 11:24

[M400 NBL]

Have a look at www.acas.org.uk

I was made redundant myself in 2006 but i'd worked there for almost 12 years. I can't remember if working for less than 2 years could effect your redundany payout.

Let us know what you find out from the website and i'll have a look ,yself later when I get a chance.

Edited the acas website

Edited by M400 NBL on Friday 8th February 18:41

[D_T_W]

I've found a bit of info, but i'm after something resonably simple and concise that i can have a look at and understand what i'm going into, the ACAS stuff is more aimed at group redundacies rather than single person.

I'll keep looking though, thanks for the advice

[Piglet]

Does your employer offer a free advice service run by someone like ICAS? Check your intranet and benefits pages they will give you free independent advice.

Also check your home insurance to see if you have legal expenses insurance we used ours when OH was made redundant incorrectly.

You may also find your bank give you a free legal advice line if you have a packaged account.

Good luck...

[bga]

D_T_W said:

I've found a bit of info, but i'm after something resonably simple and concise that i can have a look at and understand what i'm going into, the ACAS stuff is more aimed at group redundacies rather than single person.

I'll keep looking though, thanks for the advice

Redundancy process is the same if it's one or one hundred roles which they are cutting. In that respect, the ACAS info is good. You can also call them for decent advice. Same consultation process needs to be followed etc

Good luck!

[M400 NBL]

I must admit I didn't find acas helpful for the OP's situation.

Maybe try the CAB! or check for forums that specialise in employment law.

Best of luck.

[minitici]

http://www.dti.gov.uk/employment/employment-legisl...
Statutory redundancy payments require a minimum of 2 years continuous service.
Anything in your contract of employment re. redundancy?

[Jasper Gilder]

With less than 2 yrs service there is no statutory right to a redundancy payment - although there may be a contractual right - and this will be laid out in your contract of employment

Your only other hope would be to show that you had been unfairly selected - this is equivalent to an unfair dismissal and might work if your employer can't show that they have a robust selection formula which has been applied even handedly

Clearly if you are from an ethnic or religeous minority, disabled, the Lord Mayor, pregnant, on strike, a transvestite or transexual or a shop steward you might make some ( limited) progress....

[Ordinary Bloke]

Jasper Gilder said:

With less than 2 yrs service there is no statutory right to a redundancy payment - although there may be a contractual right - and this will be laid out in your contract of employment

Your only other hope would be to show that you had been unfairly selected - this is equivalent to an unfair dismissal and might work if your employer can't show that they have a robust selection formula which has been applied even handedly

Clearly if you are from an ethnic or religeous minority, disabled, the Lord Mayor, pregnant, on strike, a transvestite or transexual or a shop steward you might make some ( limited) progress....

All nine and you'd be onto a winner...

[Jasper Gilder]

Whoops - forgot to mention being married ( or not)as a deciding factor as well as being a pain over health and safety ( refusing to work or enter a place of work due to imminent danger)

Edited by Jasper Gilder on Sunday 10th February 00:16

Edited by Jasper Gilder on Sunday 10th February 00:17

[D_T_W]

Thanks for some of the suggestions. Had another meeting today with the manager, and it comes across as if they are desperate to get trid of me. They say there will be other redundancies at the end of the month, all following the consultation process, however they have chosen to give me prior warning of it and are offering a redundancy package far above what i should be getting. They've even offered to pay my legal fees regarding the compromise agreement they want to put it place, however they are pressuring me into a decision ASAP (i was only told about it on Thursday, they want a decision by tomorrow).

I don't know what it is, but i just get the feeling they are trying to get rid of me. It all seems very cloak and dagger at the moment, which for somebody who is as unimportant as me i don't understand!

[E36GUY]

Sounds like your company is following the correct proceedure. All redundancies must follow a consultation period. They effectively give you warning of possible redundancy which they have done. IIRC that's a minimum of 2 weeks but is usually a month as it could be argued that 2 weeks is not enough time for a company to seek alternatives to the redundancy.

So - if they give you a months warning about possible redundancy, at the expiration of that time and if they have not found an alternative, they can make you redundant giving you whatever notice is in your contract. How much you are entitled to is down to length of service as explained above for for 15 months I doubt that's any more than the month's pay you'd get for your notice period.

Don't think there's anything amiss with what you have said. It's a ball-ache granted but unless you can prove they are getting rid of you for reasons other than that your job is redundant then you just gotta suck it up and get on. Keep an eye out though. If they make you redundant they can't rehire into your role for 6 months unless there are significant changes to that role and in which case, why were you not offered the opportunity to apply for it yourself.

[D_T_W]

But the point i'm trying to make is, they seem very keen to get me to sign a compromise agreement, and take what appears to be voluntary redundancy, rather than let me go through the consultation period. They have basically said i can take a cash lump sum now and just leave, or go through the normal procedure and get bugger all. So far it's all been "informal chats" (ie no HR involved)

I know which option i'm taking, it's just that it seems a little odd that i have been singled out for special treatment.

[apguy]

D_T_W said:

They've even offered to pay my legal fees regarding the compromise agreement they want to put it place, however they are pressuring me into a decision ASAP (i was only told about it on Thursday, they want a decision by tomorrow).

After 14 months service, if they offer a compromise agreement then grab it.

A compromise agreement is exactly what it says on the tin. You negotiate a set of compromises (how much gardening leave, pay, etc) and in return you promise not to sue the firm for unfair dismissal etc.

Normally a compromise agreement is used when a firm does not wish to follow normal redundancy, dismissal or employment tribunal routes. The firm may use this for a number of reasons:
1. It's quick
2. They may feel they are on sticky ground legally.
3. It can offer the employee and employer a win/win scenario

A compromise agreement doesn't mean you have done anything wrong, it just means the company wants you out quickly and cleanly and is prepared to pay for the privilege. Be prepared to negotiate for stuff like: payment in lieu of notice, references for future employer, redundancy payment...

Edited by apguy on Tuesday 12th February 13:59

[tobeee]

I'm not qualified (except by living several years with my previous gf, an HR guru) but it does all sounds rather odd. They're not yet following the formal Consultation process as that hasn't yet begun (as they told you). I wonder why they'd single you out for special treatment to do you a favour. My guess is that nobody else is going to be made redundant, but they have some other reason to get rid of you - could be anything - boss's mate needs a job, you're very highly paid and they need a quick saving etc. I would be suspicious at their desire to get you to sign away any rights you might have so swiftly. You might find that if you decline their kind offer of this enormous quick-exit payment, you'll discover that nobody else is being made redundant soon either after all. (At that point though, I'd be inclined to seek another job as I wouldn't want to work for such a sneaky employer!). You really should speak to Citizens Advice or other such org to get some quick advice. Be interesting to know what they're playing at!

[D_T_W]

apguy said:

D_T_W said:

They've even offered to pay my legal fees regarding the compromise agreement they want to put it place, however they are pressuring me into a decision ASAP (i was only told about it on Thursday, they want a decision by tomorrow).

After 14 months service, if they offer a compromise agreement then grab it.

A compromise agreement is exactly what it says on the tin. You negotiate a set of compromises (how much gardening leave, pay, etc) and in return you promise not to sue the firm for unfair dismissal etc.

Normally a compromise agreement is used when a firm does not wish to follow normal redundancy, dismissal or employment tribunal routes. The firm may use this for a number of reasons:
1. It's quick
2. They may feel they are on sticky ground legally.
3. It can offer the employee and employer a win/win scenario

A compromise agreement doesn't mean you have done anything wrong, it just means the company wants you out quickly and cleanly and is prepared to pay for the privilege. Be prepared to negotiate for stuff like: payment in lieu of notice, references for future employer, redundancy payment...

Edited by apguy on Tuesday 12th February 13:59

They've already offered a full reference, along with honouring my full notice period and the redundancy payment. I'm just out of another brief meeting where i was again asked to be quick with my decision. I know something isn't quite right, but i don't think hanging on for the consultaion period is an option now i've thought about it.
I suspect they just want rid of me, for whatever reason. I suspect there will be no other rundundacies come the end of the month, but i think it would be foolish to pass on the opportunity of a decent redundancy payment.

Thanks for the advice all, i'm trying to get a meeting with a pal of mine who is an specalist in employment law this week to be my representitive.

Cheers

[Piglet]

Hmm sounds strange, my first thought is that either you carry out a function that they can outsource or cover off with someone else or that you are very expensive for them or very crap!

The practical point must be, are they offering you enough to go now? Given the state of the economy now can you get another job paying the same amount of money? How much do you need THIS job?

I also think the "further redundancies to come" sounds like rubbish, they obviously want rid of you which brings me back to the first paragraph.

I'd be keen to get out, it doesn't sound like you have good prospects there anyway.

Good luck!

[Jasper Gilder]

I've been round a long time and something in my radar is buzzing. If your company has an HR department they MUST be involved - if they aren't, or haven't spoken to you, your boss may be on some kind of maverick caper. Worst case scenario - you sign up to the agreement, leave and they don't pay!!

I would do nothing until I had some straight answers from a much more senior manager than the person handling things just now - if it then looks like their preferred option, you have to decide if you really want to work for a bunch who are going to treat you like this. If no straight answers are forthcoming it makes the previous question easier to answer - then get everything in writing and be prepared to hit the courts before they go bust

[D_T_W]

I can't go much higher, the guy that told me is 3rd from the top!

HR do know what the situation is, as according to the director i've spoken to "it has been a decision at senior level", which would include the HR director.

I don't understand why i'm being singled out for special treatment if there will be several redundancies and they could get away with paying me nothing. The only logical answer is that i'm the only one going, so they're trying to sweeten me up and just get rid of me.

I'm refusing to be pressured into making a decision though, however do i really want a drawn out court case where i could walk away with nothing? There is no way i'll walk out into another job that pays what i earn now, or has the potential future prospects. But they are offering me 2 months salary as my redundancy package, along with any legal fees i incur.

I have to admit, i'm at a bit of a loss as to what to do. The sensible option would be take the redundancy money and go, but part of me says take them for all they are worth.

Signed

[Ordinary Bloke]

If you've seen any of my other posts, you'll know I know nothing but here's my thoughts. Get them to put everything they want to say in writing, on headed paper, signed. Tell them you'll give them an answer on Friday.

Go to a solicitor who specializes in employment law, get his/her opinion.

If necessary, do a meeting with your lawyer present.

Don't just sign. But do recognize that you won't be staying there...