No contract - and threat of redundancy

[Wedgie]

My bro's company is not doing well and the workforce were told of this a while ago. They were told yesterday was 'D Day' when everyone would be told what was going to happen, but the day came and went with nothing being said.

My bro has no contract which I was astonished to hear (he has been there nearly 4 years). Flowery / Ribena / anyone else who can help, I advised my bro that he should pre-empt anything happening by sending a letter stating he has no contract. Do you think this is the right course of action and is there anything else you can recommend?

Sorry I don't have more details to provide you with, appreciate your comments.

[llareggub]

It makes no difference whether there is a contract or not. He still has over 2 years service, assuming he has worked there continuously so is therefore entitled to redundancy.

Personally in that situation I'd be asking for specific info about the outcome, selection process etc, or is it likely the company is going under completely?

[flowerybeanbag]

I wouldn't panic too much about the lack of contract tbh. After 4 years in employment his terms and conditions will be pretty well established, his notice period is protected by law as is his holiday, both of which are the important things when it comes to redundancy.

Obviously not having a contract, or at least a written statement of certain basic information, is illegal, but I don't think drawing their attention to a lack of one is going to help anything particularly at the moment.

Have a read here about redundancy notice periods, it's one week for each year of employment in the absence of any extra provision. Usually it would probably be a month in a contract anyway, so little difference there.

Similarly, holiday entitlement is all set out in law, and even if his employer actually gives more than the basic statutory 5.6 weeks, the fact that your brother doesn't technically have it written in an individual contract doesn't make it any less part of his terms and conditions, the same as any other benefits.

The one thing a contract might say that might make a difference is something about pay in lieu of notice. If his employer do make him redundant and want to pay him in lieu of notice, in the absence of a contractual provision to that effect, they don't have the right to do that as such. It doesn't mean they can't, but what it does mean is that doing so would effectively be compensation for breach of contract, so payment for his losses incurred as a result of not being able to work his notice period. It wouldn't be much different, but would have to be tax-free and would have to take into account things like holiday he would have accrued during that 4 weeks had he been allowed to work them.

But rest assured, the fact that he doesn't have a written contract doesn't affect his rights in terms of redundancy consultation, or the ability to claim unfair dismissal should it not be genuine redundancy or not conducted properly.

[Wedgie]

Thanks very much guys - I will forward this valuable advice onto him!