Redundency

[James 33]

Unfortunately i have recently found out my factory is to relocate to Europe in the next 18-24 months and we are all to made redundant. We operate as a limited company but are owned by a big European corporation. Our redundancy package is pretty good BUT it states that in the event of financial hardship then we may only get the Government statutory. Now on paper our place makes very little actual profit although we have a very high turnover and are extremely busy. We don't own the building but rent it from a holding company that is also part of the bigger group, same with the machines etc. The parent company however is massive and in no way short of money.
What I'm concerned about is after the move take's place and they wind our factory down could they turn around and say that our LTD company has no money and therefore only offer Statutory redundancy?
I am in a Union but thought i would see what you all think. Thanks.

[Mr MXT]

I think any offer above statutory is at the companies discretion, regardless of their financial strength.

ETA: Best of luck you get the outcome you want!

[James 33]

Thanks. I'm considering jumping ship before they close as a local firm is taking on a load of people. Would loose 7 years redundancy but would rather keep working and not have the stress of looking for a job while out of work,

[anonymous-user]

James 33 said:

Our redundancy package is pretty good....

The parent company however is massive and in no way short of money.

How good is pretty good? i.e. How many months would you have to work to make the same amount of money, after tax?
When in your life are you next likely to have the chance of a significant lump sum, probably tax free?
How confident are you that you can get another job of some sort reasonably quickly if you sit it out?

I say this because it's massively beneficial, if you can pull it off, to pocket the redundancy cash and then start another job.

[MiseryStreak]

James 33 said:

Thanks. I'm considering jumping ship before they close as a local firm is taking on a load of people. Would loose 7 years redundancy but would rather keep working and not have the stress of looking for a job while out of work,

Don’t do this. You’ll be throwing away 7 weeks of wages. Have you any annual leave left? You’re entitled to take this up to your final day, so you could start work at the new place whilst you’re still working there.

All the best by the way. It’s always horrible but also nearly always works out for the best. Staying in the same job is the safe option but sometimes we need a kick up the arse to move onwards and upwards and not stagnate.

[James 33]

rockin said:

James 33 said:

Our redundancy package is pretty good....

The parent company however is massive and in no way short of money.

How good is pretty good? i.e. How many months would you have to work to make the same amount of money, after tax?
When in your life are you next likely to have the chance of a significant lump sum, probably tax free?
How confident are you that you can get another job of some sort reasonably quickly if you sit it out?

I say this because it's massively beneficial, if you can pull it off, to pocket the redundancy cash and then start another job.

Not got the exact figures yet but would probably work out about 6 months money. Im in engineering and thanks to Brexit and Covid it's uncertain times at the moment. A friend of my wifes said he could offer me a job at his place but it would be alot less money and a career change. A local firm is recruting and it would be about the same money and a 5 minute walk instead of a half hour commute.
.

[CAPP0]

MiseryStreak said:

James 33 said:

Thanks. I'm considering jumping ship before they close as a local firm is taking on a load of people. Would loose 7 years redundancy but would rather keep working and not have the stress of looking for a job while out of work,

Don’t do this. You’ll be throwing away 7 weeks of wages. Have you any annual leave left? You’re entitled to take this up to your final day, so you could start work at the new place whilst you’re still working there.

All the best by the way. It’s always horrible but also nearly always works out for the best. Staying in the same job is the safe option but sometimes we need a kick up the arse to move onwards and upwards and not stagnate.

Be careful - I have seen redundancy agreements which state that if you accept a new role with another company before the redundancy date, you waive the redundancy payment. May not be common, may not apply here, but check anyway!

[Flooble]

When you say they are closing the factory in 18-24 months, are you certain you are going to be made redundant imminently?

The jobs market could look very different in two years (no, I don't know in which direction!). Similarly, large firms have a habit of changing their mind when the next set of management consultants or senior execs breeze into town.

One firm I worked for "closed the UK office" ... 7 years after the guy flew in the "close us" there were still several people working there.

[James 33]

Thanks for the advice. I have decided to stick it out until the end and come away with some money. I have about 18 months to decide what i want to do with my life. Either carry on in engineering or look at something else. Hopefully by then things will have settled down after brexit and the pandemic.