Redundancy q - Company wants to force garden leave
Discussion
My wife has been put at risk but redundancy is certain due to re-org.
Company initially offered a single payment of essentially 6 months salary plus lump sum OR 6 months gardening leave where she would be paid as normal and then a lump sum. The tax implications for the latter are beneficial but it means she would not be able to take up another role during this time.
We were talking about it and perhaps thinking about the former as a potential take over of the company or financial viability could be an issue, plus my wife works at a high level and 6 months twiddling her thumbs is not what she wants
Company is US based buy she has a UK based contract, she is a additional rate taxpayer, there are no competition concerns as the role is not sales based
However following a conversation with HR this morning the first option is off the table and only the garden leave option is on offer
First q - Can they do this ?
Second q - Can anyone recommend a decent solicitor on employment law just to have a conversation with ?
Company initially offered a single payment of essentially 6 months salary plus lump sum OR 6 months gardening leave where she would be paid as normal and then a lump sum. The tax implications for the latter are beneficial but it means she would not be able to take up another role during this time.
We were talking about it and perhaps thinking about the former as a potential take over of the company or financial viability could be an issue, plus my wife works at a high level and 6 months twiddling her thumbs is not what she wants
Company is US based buy she has a UK based contract, she is a additional rate taxpayer, there are no competition concerns as the role is not sales based
However following a conversation with HR this morning the first option is off the table and only the garden leave option is on offer
First q - Can they do this ?
Second q - Can anyone recommend a decent solicitor on employment law just to have a conversation with ?
I can't comment legally, however 6 months isn't a long time.
Most high level contracts are 3 months notice, that leaves her 3 months to find something and still be on par.
Previously I've been on garden leave in the same situation for 8 months, it was great, found a job after the first couple, gave them a start date.
Will she find something quickly, is this an opportunity for a change?
Take the leave, relax, get paid, find something new!
Most high level contracts are 3 months notice, that leaves her 3 months to find something and still be on par.
Previously I've been on garden leave in the same situation for 8 months, it was great, found a job after the first couple, gave them a start date.
Will she find something quickly, is this an opportunity for a change?
Take the leave, relax, get paid, find something new!
Surprised that she can't do other work during gardening leave. Normally it's allowed (I'm going through exactly that now, not for the first time!). It's in the best interests of most businesses to pay the remaining notice and redundancy payment as late as possible, so they should be encouraging your wife to take that route by allowing he to do other work.
Additionally, they have a moral responsibility to help her find a new job, so enforcing her notice period would be against that principal.
Additionally, they have a moral responsibility to help her find a new job, so enforcing her notice period would be against that principal.
Pros & cons - Payment in lieu of notice means you get the money quicker, but lose any benefits such as medical, life insurance etc. You're also officially no longer employed, which may not look as good if you are interviewing.
Most companies go the garden leave route and not allow concurrent employment somewhere else. However, will be open to mutually agreeing to shorten the period, but stopping paying you earlier.
As above - PILON is very much at the discretion of the company & likely offered in a non-binding way. However, if offered in writing you may have a case to push for it.
Most companies go the garden leave route and not allow concurrent employment somewhere else. However, will be open to mutually agreeing to shorten the period, but stopping paying you earlier.
As above - PILON is very much at the discretion of the company & likely offered in a non-binding way. However, if offered in writing you may have a case to push for it.
Professional organisations often have employment advice lines too if she belongs to her professional body.
When you say she works at a high level, I would expect that a lot of firms would have elongated recruitment processes. I would not be surprised if it was a good 3 months before she had an offer on the table anyway if she started the process today. So practically speaking I am not sure the garden leave is a huge problem. As someone else noted, almost any senior contract will be at least three months' notice. I have had some that were six months. Hence if she were to apply for a new role today and wind her way through the recruitment process, by the time she had a signed contract there would likely only be a "normal" (i.e. 3 months or so) amount of notice period left to work.
Taking the garden leave option does not seem to be a huge issue to me in terms of getting a new job. In terms of the firm folding before you get all the cash - maybe more so. But only you are in a position to judge that.
When you say she works at a high level, I would expect that a lot of firms would have elongated recruitment processes. I would not be surprised if it was a good 3 months before she had an offer on the table anyway if she started the process today. So practically speaking I am not sure the garden leave is a huge problem. As someone else noted, almost any senior contract will be at least three months' notice. I have had some that were six months. Hence if she were to apply for a new role today and wind her way through the recruitment process, by the time she had a signed contract there would likely only be a "normal" (i.e. 3 months or so) amount of notice period left to work.
Taking the garden leave option does not seem to be a huge issue to me in terms of getting a new job. In terms of the firm folding before you get all the cash - maybe more so. But only you are in a position to judge that.
liner33 said:
Update is that they have agreed to the full payment in one go IE option 1 and no gardening leave required
There is a tax impact for this but something she is happy with to give a clean break , it's largely an emotional decision for her I think
If her notice period is six months then no issue; in all honesty it sounds like a compromise agreement and thereby they call it a redundancy with the tax benefit and no further comebacks. However this will only be the case if it's all signed off legally. There is a tax impact for this but something she is happy with to give a clean break , it's largely an emotional decision for her I think
If so ensure there is an element whereby they pay the solicitors fees.
TBH biggest pain in the arse is tax; this was done to me in January which meant my earnings were going to be incredible for the year and so was the tax bill.
I managed to negotiate a position whereby I earnt some of the money [stocks and shares] in the following year but then again my employers at the time were very good
Yes she has a solicitor to check stuff over the company will pay £350 towards this , the rest of the package that she has been offered is very good but with a large lump sum coming 6 months away there were concerns. She has to give 3 months notice but the company needs to pay 6 months
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