Company in a bad way, new job & redundancy questions

[528Sport]

Evening,
The wife works for a small business, one of 10 employees. (my wife has an interest in the business as a potential partner to turn things around)

Whilst on holiday we received a letter saying the following: (not exact wording as I haven't read the letter myself.....)

"With regret I have to inform you all that things are not looking great. I have spoken to ACAS and i'm working within their advice and I have come up with the following options.
For a limited time we all take a reduction in hours across the board.

We start an advertising campaign amongst other marketing activity to try and turn things around.

If we can not agree on reduced hours at a consultation meeting next Thursday we may have to look at redundancy options. "

letter ends_______


Now one employee (worked for 2 years and under 21) and started and new job before the consultation meeting now thinks she is entitled to redundancy.

Other employees are refusing to commit to a reduction in working hours until they have been given a redundancy figure.

Questions are

If you start an new job whilst employed (no redundancy offered as yet) are you entitled to seek redundancy payment?
Can the other employees demand to know redundancy entitlement before agreeing a reduction in hours?


For info purposes.
Owner has traded on word of mouth for years 20+ years.
Its a great business but has new competition and can be turned around with some advertising, the wife sees the potential as does the owner
The reduction in hours is only 3 hours a week max.
One other employee has a new job in the bag(almost) as is one of the ones demanding redundancy figure and refusing to agree new temp hours

Thanks for any advice :-)


Dave

[Jasandjules]

If you start another job then you have left your previous one. Thus you are not made redundant, you have resigned.

[oldnbold]

I'm guessing that the company would only be offering statutory redundancy pay, if so point them to this and they can all work it out for themselves.

https://www.gov.uk/calculate-your-redundancy-pay

[KFC]

Yup, statuatory redundancy or whatever is in their contracts. They shouldn't need any input at all from employer to calculate what they should be owed.

It seems ridiculous (and greedy) to demand redundancy pay if you already left the company I take it she's just sick that she's now found out she could have stayed there and been paid off... but ffs she has a job. Which is a lot more than some of her ex colleagues may have next month.

[edc]

Of course employees can make demands to find out what their potential redundancy payment might be, but that does not mean the company are obliged to provide it. From what you write nobody is formally at risk of redundancy.

The practical business advice is that if the employer wants agreement on a reduction in working hours then the employer has to sell the upside of this to the workforce. This is all about managing expectations and survival not batting back requests because they may or may not be obliged to provide certain information by law.

What does the reduction in hours mean to each individual? Provide each of them a calculation.
How long will this be in force for? Again be clear.

Explain the alternatives to a reduction in hours/salary ... can you cancel other benefits to make a difference ... healthcare, dental, free coffee/fruit, team lunches etc.

That all said, is there genuinely a lack of work to fill the day or is some work going to be some sacrificed to reduce costs?
You may find you need more hours not less to turn things around.

[jammy_basturd]

Starting a new job does not necessarily also mean the have left the current company.

Have any of those companies handed in their letters of resignation yet?

[Soov535]

Tough st!

She is entitled to nothing if she's left.


Bad luck love.

[528Sport]

Thanks everyone. We had a feeling the person who left wasn't entitled.

Unfortunately some are seeing the £££ (less than £1K in most cases) instead of looking that the longer term pay packets.

my wife is possibly looking to invest into the business to see if it can be turned around. We dont want to be putting cash in only for it to go back out to greedy ex employees.

Thanks again,