Redundancy - is this reasonable?
Redundancy - is this reasonable?
Author
Discussion

Sloe

Original Poster:

366 posts

234 months

Wednesday 29th October 2008
quotequote all
I've just heard that my dad has been made redundant. He's flapping quite a bit by all accounts and I'm expecting a call from him shortly, so I'd like to be able to offer some support if possible.

Basically, he has worked at the same firm of solicitors for 40 or 45 years (can't remember which), through numerous mergers etc. This morning he get's the news that he's been fighting to avoid for the last 10 months.

The redundancy package being given is I believe, equivalent to three months wages.

If that was me, I'd be pretty upset given the length of service. Would you consider that package acceptable, legal or otherwise?
Would it possible to challenge the value?



oobster

7,689 posts

241 months

Wednesday 29th October 2008
quotequote all
I'm no expert but I guess it depends on whether his terms etc were TUPE'd over during the changes in ownership.

I was made redundant last month after 15 years of service & I got 2 weeks pay for every year + a full month tax free. Which is handy, but no substitute for a peace-of-mind regular wage coming in.

Badgerboy

1,794 posts

222 months

Wednesday 29th October 2008
quotequote all
Basically, what does he contract specify? Without knowing that, he's basically entitled to statutory, which is sod all really. (It's capped)

Is the firm winding up, or just re-sizing?

esselte

14,626 posts

297 months

Wednesday 29th October 2008
quotequote all
I think the minimum statutory redundancy pay is:

Half a week’s pay for each full year of service where age during year less than 22

One week’s pay for each full year of service where age during year is 22 or above, but less than 41.

One and a half weeks’ pay for each full year of service where age during year is 41+

and the max. weekly on the above is £330

Adrian W

15,532 posts

258 months

Wednesday 29th October 2008
quotequote all
Notice period + goverment minimum provided they are not going bust

aclivity

4,072 posts

218 months

Wednesday 29th October 2008
quotequote all
http://www.compactlaw.co.uk/monster/empf25.html

Unless there is a specific contract clause or in the company handbook, the legal minimum applies (as described on that link) UNLESS custom and practice has been to pay a higher amount. If C&P can be proved (e.g. month per year service) then he may have a case. Custom and practice cannot simply be ignored, but it can be overruled by a company statement of a new policy. They have to state this policy before the process starts, though - if he has been told already, they cannot retrospectively apply the new policy (without his agreement).

tobeee

1,436 posts

298 months

Wednesday 29th October 2008
quotequote all
I don't know the current amount, but a couple of years ago you'd get about £270 for every year worked. A company can of course give a bit more as goodwill, but the basic amount is fixed. Sorry to hear th enews, and I hope he finds another job soon.

Soovy

35,829 posts

301 months

Wednesday 29th October 2008
quotequote all
Sloe said:
I've just heard that my dad has been made redundant. He's flapping quite a bit by all accounts and I'm expecting a call from him shortly, so I'd like to be able to offer some support if possible.

Basically, he has worked at the same firm of solicitors for 40 or 45 years (can't remember which), through numerous mergers etc. This morning he get's the news that he's been fighting to avoid for the last 10 months.

The redundancy package being given is I believe, equivalent to three months wages.

If that was me, I'd be pretty upset given the length of service. Would you consider that package acceptable, legal or otherwise?
Would it possible to challenge the value?
Needs to see a decent Employment solicitor. But he will be looking at a pay of for 20 years of service, which should be fairly decent.


Edited by Soovy on Wednesday 29th October 14:15

richardxjr

7,561 posts

240 months

Wednesday 29th October 2008
quotequote all
He's been there 40-45 years and they've offered 3months? No fking way! That's fking terrible! Poor bd.

This is my understanding:

Statutory minimum will be £330 x 1.5 x no. full years which works out, assuming continuous employment (TUPE is a given here) at £19800 (tax free) for 40yrs service. Plus notice period.

Yes. Employment Lawyer. And Quick.

ETA:
From you OP it appears they may not have followed correct procedure, which, if so, is stupid and costly from the ER's perspective. Any EL will hang 'em out to dry.




Edited by richardxjr on Wednesday 29th October 14:24

simonrockman

7,124 posts

285 months

Wednesday 29th October 2008
quotequote all
He'll also need a lot of emotional support. He needs to stop working for them on auto-pilot because that's a comfortable thing to do. I was made redundant 18 months ago and it hit me very, very hard but great comfort and advice from a friend helped a huge amount.

Simon

rude-boy

22,227 posts

263 months

Wednesday 29th October 2008
quotequote all
Sloe said:
Basically, he has worked at the same firm of solicitors for 40 or 45 years (can't remember which), through numerous mergers etc. This morning he get's the news that he's been fighting to avoid for the last 10 months.
Can’t really help much on your question other than to say he needs to see an employment solicitor asap.

Depending on what his role was (I’m guessing FILEX/Solicitor in a property dept.) I am afraid to say it is very unlikely he will get another job at a similar level, I know that many of the Firms round here are laying people off left right and centre now compared to a few who went in Qs1&2.

Not good times at all and with the changes in the law, the economic outlook and other issues I am sure he will spot but no-one would ever go on record about he needs to make sure he negotiates for every last penny he can.


Edited by rude-boy on Wednesday 29th October 14:24

Sloe

Original Poster:

366 posts

234 months

Wednesday 29th October 2008
quotequote all
Many thanks for the very quick replies.

Pretty sure the firm is not going under. The're on Victoria Embankment, London. Got a t and w in their name..... in case there are rumors about.

I'm concerned this is going to shell shock him into not making the best of the situation.

Sloe

Original Poster:

366 posts

234 months

Wednesday 29th October 2008
quotequote all
aclivity said:
http://www.compactlaw.co.uk/monster/empf25.html

Unless there is a specific contract clause or in the company handbook, the legal minimum applies (as described on that link) UNLESS custom and practice has been to pay a higher amount. If C&P can be proved (e.g. month per year service) then he may have a case. Custom and practice cannot simply be ignored, but it can be overruled by a company statement of a new policy. They have to state this policy before the process starts, though - if he has been told already, they cannot retrospectively apply the new policy (without his agreement).
I was hoping something like this may exist, I'll bring it up along with Soovy's advice.

Soovy

35,829 posts

301 months

Wednesday 29th October 2008
quotequote all
He could use this as a springboard to early retirement.

Employment lawyer. NOW.

Neil_H

15,418 posts

281 months

Wednesday 29th October 2008
quotequote all
As mentioned, if there have been several mergers etc it's possible that he was rehired under the new company, which would essential reset his length of servce to the merger.

3 months is a terrible deal under those circumstances, but it will really depend what is in his contract and on what basis the compromise agreement was arrived at.

rude-boy

22,227 posts

263 months

Wednesday 29th October 2008
quotequote all
haworthlloyd1 said:
id be upset and obviously feel sorry for him but they are a firm of solicitors so they will surely know everything down to the penny?

he could try and negotiate and point out his 40 yrs service etc

he is obviously near retirement - is he on a final salary scheme?
hehe Don't make me laugh.

Solicitors are excellent at telling others what to do, doing it themselves is a totally different issue.

Added to which they are, like any business, going to try to ‘get out of this’ as cheaply as possible.

I’m just slightly confused why someone like this was on the final list. Usually it would be far ‘cheaper’ to keep them on and get rid of a younger person in terms of the payout.

rude-boy

22,227 posts

263 months

Wednesday 29th October 2008
quotequote all
Soovy said:

Employment lawyer. NOW.
Just in case you missed it...

Edited by rude-boy on Wednesday 29th October 14:32

ettore

5,097 posts

282 months

Wednesday 29th October 2008
quotequote all
esselte said:
I think the minimum statutory redundancy pay is:

Half a week’s pay for each full year of service where age during year less than 22

One week’s pay for each full year of service where age during year is 22 or above, but less than 41.

One and a half weeks’ pay for each full year of service where age during year is 41+

and the max. weekly on the above is £330
This is correct. Payments are tax free up to £30,000 and he will also be due his notice and any remaining holiday pay.

Anything in addition to this is up to the employer. Has he actually been made redundant yet? He may of just been informed of his statutory entitlement as part of the normal consultation process. It may be that he can reach a compromise agreement that will offer better terms in exchange for a "clean" departure.

Twit

2,908 posts

294 months

Wednesday 29th October 2008
quotequote all
Soovy said:
He could use this as a springboard to early retirement.

Employment lawyer. NOW.
Good advice. The payout he's been offered is shocking and needs looking at, but with 40 odd years of service then he must be pretty near retirement? Combine the two, get the deal sorted and retire; that approach takes at least one issue off the table in that he would know what is coming next.

Often it is not the actual redundency that is unsettling or scary, its the not knowing what is coming next.

Fittster

20,120 posts

243 months

Wednesday 29th October 2008
quotequote all
How old is he (i.e. is he older than 65)?