Please could someone help - odd contract change and notice period

[needsomehelpplease]

Am a regular but nm for this post.

I would very much appreciate some employment law/HR help on this please.

My OH and his colleagues have been given a new employment contract to sign and we need to understand some details before signing.

He has been with this company for 14 years, but it started out as a small business run by a husband and wife.

It was sold and the new company did all sorts of things including giving senior staff a copy of a letter added to their contracts/files that increased their notice periods from 1 to 3 months. This was made very clear as a perk for their length and level of service and acknowledgement of their loyalty during the turmoil of buying/selling the company.

It was sold again and a much larger company bought it. Three years later, they are only now asking for new contracts to be signed.

Some of the changes make sense and some are helpful.

However, it looks like they are ignoring the 3 month notice for senior staff and have reduced it to one month without acknowledgement or explanation.

The staff in question were given a copy of this letter originally but I get the feeling that not all of them know where their copy is.

The new contract states that they will get one month's notice plus a week a year per year of service up to a maximum of 12 weeks.

They are claiming that this is 3 months of wages. However, surely this is what they would be entitled to ON TOP of the notice period payment anyway??

Isn't the length of service bit a statutory right?

Just to add to the pot, one person who had this letter and was made redundant recently had a fight to get the 3 months recognised. They said there was nothing in their records or files and implied that she was lying. They only acknowledged it when she produced her version of the letter. This led to a far larger pay out, although we obviously don't know the details.

We think this situation is why there is a sudden need to change the contracts for everyone and therefore they will be saying exactly the same thing to everyone now.

We also feel that there is a possibility (as yet undisclosed) that the big firm will want to relocate this company and are therefore future-proofing the inevitable redundancies that will come off the back of that.

My OH has asked for an sample breakdown with actual figures that demonstrate exactly what he would be entitled to if he was made redundant today. They have so far refused and just cut and paste the same para from the contract to send him by email.

He is worried about making a fuss when he just wants to hang on to his job. I understand that, but am concerned that he is potentially being shafted and that will make a big difference to our income should he be made redundant.

My questions are:

1. Can they just change the notice period anyway so it is tough luck?

1. Should they be acknowledging a change in circumstances and compensate in some way?

1. Can they be held to the original notice period legally?

1. Who is responsible for proving this letter exists for all the senior staff at the time if some (but not all) of them have their own copies? Surely it should be in the files? If they claim that this letter was never issued but are then proven that some are still around, does that work for everyone? Does this mean there is some dodgy stuff going on with the parent company?

1. The new contract states that they will get one month's notice plus a week a year per year of service up to a maximum of 12 weeks. It doesn't specify that this is at a statutory rate so are we to presume this is at his normal salary rate?

1. Those with the original letter - should they be getting 3 months pay PLUS the 12 week max payment?

1. Should any or all of this payment be taxed or ex gratia?

1. Is it normal to limit service length payments to 12 years? At least 3 of the team have been there considerably longer.

I am sorry this is so long and we would very much appreciate any guidance.

Thank you

Thank you. We are looking through those links.

A lot of questions so I will come back later but the notice period is nothing to do with the redundancy situation really. If your DH leaves he gets a minimum of a month up to four years service plus an additional week for each extra year of service up to a maximum of 12 weeks after 12 years service. This is more generous than statutory but obviously less generous than the three months he is entitled to. He is entitled to full pay for his notice period unless at the time of being given notice he is earning less than full pay in which case his notice pay will be based on his actual earnings at the lower level if he has less than four years service but full pay if he has more than four years' service. A contract can't be changed without an individuals consent and so it is normal for companies who are changing Terms and conditions to offer an incentive for employees to sign contracts which contain changes to their detriment. If there is no incentive he can refuse to agree to the changes if he wishes. They may make them anyway and I suspect they will given that this is not a change that will impact on anyone until the point at which they leave.

Hang on just re read your post. Your DH has 14 years service so he gets three months under either clause so what's the problem. There is no change for him

Thanks Virgil, that is kind of what I thought but feel too confused and not at all confident in this area.
Any other answer later on would be much appreciated!

x post.

But surely he was due the 3 months notice AND the week per year? Or not? This is where we are banging heads!

Redundant is something completely different. If he is made redundant he will be entitled to a statutory redundant payment based on age and length of service. This is nothing to do with his notice period. He may be required to work his notice period and just get the redundant payment. He may be lucky and be allowed to leave immediately with a payment in lieu of his notice period and the redundancy payment although he has no entitlement to this of the company wants him to work the notice.

Just to add (though I'm not an expert) that any company can alter the terms and conditions of a contract as long as they give the statutory notice. I think. I'm sure someone more knowledgeable can confirm or deny

Statutory redundancy is tax free. There will
Not be any reference to redundancy in his contract and any company who is properly advised will refuse to provide information unless and until a redundancy situation arises. Notice payment is taxable although there are certain situations where it will not be but this is within the gift of the company. The starting point is that it's taxable. Doesn't sound to me like your DH is being disadvantaged in any way but others who have less service may be.

Shakey that's wrong I'm afraid.

Right ho, thanks for correcting Virgil :)

Ah, ok. That makes more sense. So basically the quibble is over the payment in lieu of notice should they let them go without needing to work their notice. That is what they did to the colleague, hence the letter coming in to play.

So. They are offering 12 weeks of service redundancy which they have stated is a week per year. This will be based on gross salary rather than on the statutory max of £430 I saw on the .gov link because they haven't said otherwise.

He will only miss out on the 3 month notice clause if they choose to move offices, don't allow people to work their notice period and pay out in lieu of notice instead.

Is that worth fighting over? It just seems so underhand to run it this way and it does feel like a possible perk is being taken away.

However, as you say, it doesn't affect his current working conditions or pay and being in a job at all right now is worth a lot.

Thank you. The mud is starting to clear!

. They would always be wise to give notice if they were intending to make the change without the employees consent since this would avoid the employee having a claim for wrongful dismissal (as well as a breach of contract claim and possible constructive dismissal claim and maybe a deductions from wages claim). So you are right in that it's a sensible ring for them rondo if they are going to unilaterally impose changes but the changes will still be a breach of contract (unless the contract itself has a clause in it permitting changes)

Sorry about typos. iPad is driving me mad

He doesn't miss out either way. He was entitled to three months. He is now entitled to twelve weeks. Practically the same thing in most cases. Whether he works them or gets paid them is irrelevant really he will still have the same amount of money coming in. The redundancy pay is completely separate. the company enhances this by paying at actual salary rather than statutory weekly wage so again this is a benefit to him. Nothing to quibble about. Tell him not to do anything.

Also, to him it IS still losing out on 2 months of money because even if he worked his notice he would be having 3 months of work before the 3 months stat pay.

I hate this.

No. He is entitled to three months notice of the fact that his employment will end. He is not entitled to a payment. He is entitled to be told three months beforehand.

They are now changing this to twelve weeks (same thing).

If he is made redundant they have to tell him three months before and let him work this notice.

He is then entitled to a statutory redundancy payment but they have said they will enhance this by using his actual
Pay and not the statutory weekly wage.

If he is lucky they might waive the requirement that he works his notice and instead pay him in lieu of his twelve weeks/ thee months notice PLUS he would still be entitled to his redundancy payment.

He has not lost out on anything

He has no entitlement to three months of statutory pay. There is no such thing. I think this is where you are confused

AAAGH! Thank you. Just re-read the contract and it is me getting confused between notice period and redundancy. It says there is a 1 month notice plus a week a year up to 12 years service.

There is no separate statement at all around redundancy.

Thank you thank you thank you.

I feel so thick!

No problem . Don't worry you're not thick at all. I just do this every day!