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at risk of redundancy but no notice being given

7 replies

dennymosh · 20/01/2009 12:45

My DH has been informed that he is at risk of redundancy and is currently in a consultancy period.

His company has two types of contract one is connected with the automotive industry and this is the one that he has. Of the staff with this contract, 40 people have been notified in writing that they are at risk (out of approx 70) with 35 actually going on the 2 Feb.

He has asked when he will actually be given notice as his contract does not include an option to be paid in lieu but has been told that he will be told and leave on the 2 Feb.

This means that no notice will be given, are the company therefore in breach of contract?

On the 2nd of Feb he will be shy of 2 years employment by 5 days therefore will only get one weeks pay. If notice is given correctly on the 2nd, he will have been there 2 years and entitled to 2 weeks redundancy pay, is this correct?

He has a few days of banked hours from extended shutdown at Christmas. There is no provision for any hours to be clawed back in his contract and he and the other workers were told en masse at an union meeting outside of works time that was hijacked by the MD that the MD would not claw back hours - he is now back tracking on this, can he do this?

The other issue is that that the staff that are on the other contract (and not at risk of redundancy) will be used once these redundancies have been made to fulfill the positions - does this mean then that the redundancies should not be made as the positions are not actually redundant?

thanks for reading - sorry it is a bit long.

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flowerybeanbag · 20/01/2009 13:17

If a contract doesn't include a clause to pay in lieu it doesn't necessarily mean the employer can't do it. Has he been told specifically that they won't?

If there is an option to pay in lieu that means employment can be terminated with immediate effect as long the employer pays out the notice pay. If there is no option to do that in the contract, the employer could terminate the contract with immediate effect, which would be breach of contract, and would then pay a sum of money which would effectively be technically compensation. It is normally notice pay but would also usually include payment to cover any additional losses incurred as a result of the breach of contract. So in your DH's case the argument would be that his payment should include redundancy pay he would have been entitled to if he had been given the proper contractual notice.

In terms of the banked hours, difficult to say without more knowledge. Similarly with the fact that other staff will be retained. If your DH's job and these other jobs are completely separate and your DH's job will still be there, but the other jobs will be redundant instead, then the people filling those other jobs ought to be made redundant rather than your DH's group. But I don't know enough to say that.

It sounds as though there are quite a few, and I would expect the union to be addressing all of these points during the consultation. Your DH should ensure they are clear about all his details and information and liaise closely with them to ensure everything is taken into account.

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woody2shoes · 20/01/2009 14:42

Hi Some advice would be great!
Have just been told that our company is in 30 day consultation period. I have not been told that i will be one of the unfortunate ones to go, although if that is the case i am quite concerned as i am in my 28th week of pregnancy, i have handed in my MATB1 form but have not yet given dates to as to when my maternity will start,(no one has asked), i really dont know where i stand in this, also the position can not as such be made redunant although i have a feeling that they may find a way round this.

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flowerybeanbag · 20/01/2009 14:47

woody you need to notify your employer formally when you plan to start your maternity leave. You shouldn't wait for someone to ask you.

AS long as you are still employed after week 25 of your pregnancy, you will still be entitled to SMP even if you are made redundant.

What do you mean the position 'can not as such' be made redundant? Why not?

When you say you don't know where you stand, what are you not sure of?

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woody2shoes · 20/01/2009 15:01

Thanks for the quick response.
Well the position is reception desk, i cant see them doing away with the post as it is walk in reception. As to where i stand i was told that to get maternity pay i would have to leave on maternity during the notice period (if Given).

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flowerybeanbag · 20/01/2009 15:10

Well if your post remains intact, then you will not be redundant anyway, or will be able to appeal the decision if you are.

In terms of getting maternity pay, all you have to do is still be employed at 25 weeks, which you were. It doesn't matter when after that you start maternity leave. You could have your employment ended in week 26, and then start your maternity leave in week 39 if you want to.

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woody2shoes · 20/01/2009 15:16

Thanks again! that really helps!

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dennymosh · 20/01/2009 16:16

Thank you for the help

Unfortunately one union rep has gone off sick and the other is rather close with the management team. DH has another meeting on Thursday so I will get him to raise the issues - the union rep is not disclosing what is being said in discussions until they get into individual meetings so I think we need to request that details of the consultation process and what has been discussed in writing

Thank you again

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