working for the same company after redundancy
working for the same company after redundancy
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LongBaz383BHP

Original Poster:

2,097 posts

246 months

Monday 2nd June 2014
quotequote all
After some advice on this.
I was made redundant from my old job of eleven years to be offered another job doing the same job at a different contract . Finishing on Friday started on Monday. How long does one have to wait before tax liabilty on redundancy pay when going back to work for the same company.
Barrie

Eric Mc

125,609 posts

294 months

Monday 2nd June 2014
quotequote all
They have broken the law.

YOU weren't made redundant. Your ROLE was was made redundant.

If that is the case, they CANNOT rehire you to do the same role.

On the tax front, if they paid you a tax free redundancy amount and then rehired you to do the same job, they have committed a PAYE fraud.

Countdown

49,308 posts

225 months

Monday 2nd June 2014
quotequote all
LongBaz383BHP said:
After some advice on this.
I was made redundant from my old job of eleven years to be offered another job doing the same job at a different contract . Finishing on Friday started on Monday. How long does one have to wait before tax liabilty on redundancy pay when going back to work for the same company.
Barrie
What do you mean by "different contract"? It seems strange that the company would make you redundant and then re-employ you into the same role on the T&Cs (they wouldnt save any money and would end up paying redundancy pay on top). I have seen these shenanigans happen but normally it's in fairly senior roles where the incumbent gets a payoff so that the Council can be seen to be cutting posts, only for self-same incumbent to be re-employed via Agency or private company.

With regards to timescale and tax liability, there isn't a fixed period of time. If HMRC do a compliance visit they will look at redundancy payments, ask if you rehired anybody, and then look at the role they were rehired into. The shorter the timescale and the greater the similarities between old/new role increases the likelihood of it not being a genuine redundancy.

Engineer1

10,486 posts

238 months

Monday 2nd June 2014
quotequote all
Eric reading that it sounds like the OP may have been working as X on a contract to support Y corp, the Y corp work has dried up so redundancy from that team. In the meantime a job has come up working as X on a contract with Z Ltd has come in or the workload increased so headcount has increased as well.

edc

9,633 posts

280 months

Monday 2nd June 2014
quotequote all
Engineer1 said:
Eric reading that it sounds like the OP may have been working as X on a contract to support Y corp, the Y corp work has dried up so redundancy from that team. In the meantime a job has come up working as X on a contract with Z Ltd has come in or the workload increased so headcount has increased as well.
Even in this scenario the actual employer remains the same. Which customers of the employer you are supporting or which site you may be working on is still of interest but ultimately irrelevant when the employment relationship is still continuing.

LongBaz383BHP

Original Poster:

2,097 posts

246 months

Monday 2nd June 2014
quotequote all
Engineer1 said:
Eric reading that it sounds like the OP may have been working as X on a contract to support Y corp, the Y corp work has dried up so redundancy from that team. In the meantime a job has come up working as X on a contract with Z Ltd has come in or the workload increased so headcount has increased as well.
This is correct. I was at site Y for eleven years and made redundant.however site X has no manager and they have asked me to stand in for 3-4 months until they can recriut a replacement. Site X is 100 miles away from siteY.


Eric Mc

125,609 posts

294 months

Monday 2nd June 2014
quotequote all
So, is the the same role or not? That is the key point.

People are not made redundant.

ROLES are made redundant.

LongBaz383BHP

Original Poster:

2,097 posts

246 months

Monday 2nd June 2014
quotequote all
Yes it is the same roll. My question is, what would be an appropriate legnth of time between taking up the new position as to not be liable for tax on redundancy payment.

edc

9,633 posts

280 months

Monday 2nd June 2014
quotequote all
The simplest answer is to carry on in the role on a different site and be released when that role requirement is no longer needed.

LongBaz383BHP

Original Poster:

2,097 posts

246 months

Monday 2nd June 2014
quotequote all
To late I have already received the pay out.

Davel

8,982 posts

287 months

Monday 2nd June 2014
quotequote all
Could they argue that the role at his regular place was redundant - and they have taken him to do a similar role elsewhere and on a temporary basis?

edc

9,633 posts

280 months

Monday 2nd June 2014
quotequote all
LongBaz383BHP said:
To late I have already received the pay out.
This is as much the company's problem as it is yours. One way round is for you to re-pay the money, they re-instate you, you carry on the work, you are terminated by reason of redundancy later and receive the payment later.

Marcellus

7,204 posts

248 months

Monday 2nd June 2014
quotequote all
If the site you have worked at for 11 years no longer has that role at that site then the role is redundant.

Another site within the same organisation has the same role but at a different site therefore it is not the same role as the one you were doing as the site is different and over 100miles away.

If you were to flip it and your, now ex, employer were to say "OP we're moving your role 100miles away on the same terms" would you be happy?

spikeyhead

20,372 posts

226 months

Tuesday 3rd June 2014
quotequote all
LongBaz383BHP said:
Yes it is the same roll.
It is not the same role, unless you are managing the same people doing the same tasks it is a new role with the same job title.

edc

9,633 posts

280 months

Tuesday 3rd June 2014
quotequote all
New role, same role, different team, different customer, it's all superfluous you are still working for the same employer.

nsi

329 posts

227 months

Tuesday 3rd June 2014
quotequote all
edc said:
New role, same role, different team, different customer, it's all superfluous you are still working for the same employer.
Not true.

edc

9,633 posts

280 months

Tuesday 3rd June 2014
quotequote all
nsi said:
edc said:
New role, same role, different team, different customer, it's all superfluous you are still working for the same employer.
Not true.
Are you saying that HMRC would be happy that he was employed on a Friday doing one job, received a deduction free severance payment, then returned to work immediately afterwards?

Eric Mc

125,609 posts

294 months

Tuesday 3rd June 2014
quotequote all
edc said:
nsi said:
edc said:
New role, same role, different team, different customer, it's all superfluous you are still working for the same employer.
Not true.
Are you saying that HMRC would be happy that he was employed on a Friday doing one job, received a deduction free severance payment, then returned to work immediately afterwards?
Depends on the circumstances.

What people can't seem to really grasp is that the legal definition of redundancy when speaking about employment matters is that the "Redundancy" relates to the specific job the employee was doing, not the employee.

If a person was working as a checkout operator, was made redundant due to the implementation of automated checkouts, received a redundancy payment and
hen were re-hired immediately to collect shopping trolleys, then the redundancy payment would stand - because the new employment related to a totally different role - despite the fact that it was with the same employer.

The key as to whether the OP is entitled to keep the tax free lump sum he received on redundancy is how close to his original role his new role is. If the new role is identical in every respect, then he has a problem.

If it differs substantially, then he may be OK,.

If there is some commonality between the two jobs, then, if queried, his employer may have to argue their case with HMRC.

edc

9,633 posts

280 months

Tuesday 3rd June 2014
quotequote all
Absolutely, but if he was checkout operator to trolley pusher then he should retain continuous service and be redeployed into the new role as a suitable alternative role with an appropriate trial period, not severed and rehired. But, based on the limited information given if the role is essentially the same role on the same terms and conditions but in a different location then an employee cannot unreasonably refuse the role without forfeiting their redundancy payment. That of course assumes a role was offered, refused and money not paid.

A cautious approach might be to hold back an amount for Tax and NI and carry on working.

Marcellus

7,204 posts

248 months

Tuesday 3rd June 2014
quotequote all
edc said:
Absolutely, but if he was checkout operator to trolley pusher then he should retain continuous service and be redeployed into the new role as a suitable alternative role with an appropriate trial period, not severed and rehired. But, based on the limited information given if the role is essentially the same role on the same terms and conditions but in a different location then an employee cannot unreasonably refuse the role without forfeiting their redundancy payment. That of course assumes a role was offered, refused and money not paid.

A cautious approach might be to hold back an amount for Tax and NI and carry on working.
But if he were a checkout operator at store A and then returned as a trolley pusher at store B which was 100 miles away from store A as is the case of the OP then there would be less of a potential issue.