Redundancy and obligations
Discussion
My friend works for a company whose outlook in the near future is looking a bit pecarious. As such, we have been discussing the possible redundacy options.
Currently he has worked at the company for 4 years, in a managerial role, and his contract stipulates a 3 month notice period.
The company is owned by a large bank. If they were to withhold funding, and force the company to literally run out of cash, will they have to honour the notice period given in his contract? I ask this, because I was in a similar postion last year, where our owners (A Chinese based company) were literally going to starve the UK company of cash ands stiff the staff. (Minimum statutory) Luckily, it never came to this, and we kept our jobs.
Can we expect the bank to honour their obligations? Do they have to legally do this?
Thanks. (What fun times we live in eh?)
Currently he has worked at the company for 4 years, in a managerial role, and his contract stipulates a 3 month notice period.
The company is owned by a large bank. If they were to withhold funding, and force the company to literally run out of cash, will they have to honour the notice period given in his contract? I ask this, because I was in a similar postion last year, where our owners (A Chinese based company) were literally going to starve the UK company of cash ands stiff the staff. (Minimum statutory) Luckily, it never came to this, and we kept our jobs.
Can we expect the bank to honour their obligations? Do they have to legally do this?
Thanks. (What fun times we live in eh?)
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