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Company may be going out of business. Should I hang on for redundancy?

(17 Posts)
abouteve Tue 02-Sep-08 22:10:53

My boss has been warning me that the company cannot continue in its present form and that he may be able to keep me on reduced hours.

Its complicated as I also have another job that fits in and I don't want to leave the that one so I've been trying to get some hours elsewhere but haven't found anything yet.

I think the company is going under anyway so am apply for part-time and even full-time jobs. In the meantime I think I should hang on for redundancy, if another job doesn't surface sooner, at least it will give me a few week pay to tied me over. Is this the right thing to do? Surely he cannot expect me to just walk away. Any advice would be welcome.

llareggub Tue 02-Sep-08 22:15:22

How long have you worked there? You don't qualify for redundancy if you have less than 2 years service.

Where I work redundancy pay would be worth waiting for, but my DH has worked for the same company for 12 years and his redundancy pay would have been roughly £3000. If you can afford to live on your savings a while then it may be worth it, but personally I'd be looking at securing myself an alternative job elsewhere.

abouteve Tue 02-Sep-08 22:18:48

Been there just short of 4 years so I'm hoping it would be 3 weeks pay with no deductions. Then I would be able to claim a top up from CTC so could last a couple of weeks. I am very actively seeking work but have not been successful so far. Its hang on until crunch day or walk away with no job or redundancy pay.

abouteve Tue 02-Sep-08 22:19:26

Sorry meant a couple of months not weeks.

KatyMac Tue 02-Sep-08 22:19:40

Don't you have to pay tax & NI on redundancy (I'm not sure tbh)

abouteve Tue 02-Sep-08 22:25:26

No Katymac, I've been made redundant before about 8 years ago and I think I received the money free of deductions.

KatyMac Tue 02-Sep-08 22:26:31

Thanks for the info

surreylady Tue 02-Sep-08 22:53:38

If the company does go under - they will not pay you redundancy as they will be n longer trading - you can claim something from the gov - but it is a week per year under 40 and 1.5 per year over 40 I think but the big gottcha is it has a cap - which is pretty low - so when it happened to me did not represent my salary at all.

llareggub Wed 03-Sep-08 06:57:46

There is no tax or NI payable, but it is capped at £330 per week, so in your case it will be £990.

CantSleepWontSleep Wed 03-Sep-08 07:53:47

Blimey - when did it go up to £330 pw cap? Was capped at £150 pw only a few years ago!

DaisySteiner Wed 03-Sep-08 08:03:48

You don't pay any tax or NI on the first £30K and only tax above this, not NI.

DaisySteiner Wed 03-Sep-08 08:05:02

FWIW I wouldn't walk away without another job to go to, but I wouldn't turn down a job in the hope of getting redundancy as you might not get any if they go under.

abouteve Wed 03-Sep-08 09:40:09

Thanks for the replies. I'm on the phone to ACAS trying to get through as its definite that its winding up at the end of September. Oh buggar! Feel all shaky now. Its a part-time job but still I need every penny I earn.

KatyMac Wed 03-Sep-08 16:08:10

acas is a nightmare to get through to

flowerybeanbag Wed 03-Sep-08 16:14:50

Trouble is if you hang on for redundancy and you're only getting £900-odd, you'd have to get a new job starting virtually straight away to make it worth hanging on for. Also, if company is winding up you may have to wait a while to get your redundancy money anyway, as there may be a long list of creditors needing money. You can claim from the government if they can't pay you but it might take a while.

Keep looking for a new job and if you don't find one in time, fine, but if you do, take it.

abouteve Wed 03-Sep-08 16:48:45

Thanks, I am looking for another job. What I was asking is if I am right to wait for the redundancy rather than walk away, which my employer seemed to be suggesting even though I haven't found anything yet. If find a job tomorrow I will leave but its unlikely so I think I'm right to stay iyswim.

Been told today that the company is winding up on 30th September. So will hopefully finish then. I suspect I will be in a lose situation so hope it doesn't take long too find another job.

llareggub Wed 03-Sep-08 17:37:47

I think what Flowery and I are both saying is that the redundancy money isn't worth waiting for. Do all you can to find another job. Your boss really ought to give you reasonable time off to find something else, I'd raise it with him.

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