Redundancy: Collective vs. Individual Consulation

[CluckyKate]

Help!

Today I have been informed that my role will no longer exist and desperately need some advice on where I stand. To complicate things a bit I am bang on 28 weeks pregnant and am due to start maternity leave on 3rd Jan (baby is due on 2nd Feb).

Initally there will be a consulation process and all those affected have been asked to confirm whether they would prefer a collective or individual consulation process and to state their preference by Friday. From the info. that HR have provided the individual process will be much quicker however, not having been through this before, I'm a little bit in the dark as to the pros and cons of each and want to ensure I make an informed decision.

I'd also appreciate some advice on my maternity entitlement - the expected termination date (assuming I'm unsuccessful in applying for another role) is 31st Jan at which point I will be on mat leave. How does this affect my entitlement? I work for a large multi-national organisation so the maternity package is in excess of the statutory min....and what about bonus, holiday pay etc.

Any words of wisdom greatly received

Have a read about consultation. Normally you don't get to pick which one and it's impossible to say which is better without knowing about the situation.

You will get SMP whether your employment is terminated or not. Anything your employer pays over and above SMP is entirely up to them, so this is something you should get clarified as part of the consultation. Same with bonuses - presumably if they are due to be paid before your employment would be terminated you would get them, if not due until afterwards, probably not but again you need to check as part of the process, and look at the terms and conditions of your bonus scheme as well.

Holiday pay you will be entitled to accrue holiday up to the last day of employment.

Thanks flowerybeanbag.

So, as I understand it, under collective consultation we (i.e. all those affected) can elect a person or persons to represent us as a group whereas individually we're reliant on acting under our own steam - have I got that right?

The maternity pay really worries me - with holiday and bonus I would have effectively received 6 months full pay + 3 months SMP. If I end up taking redundancy this reduces to 6 weeks 90% pay & 33 weeks SMP which will make a significant dent in our household income (I earn more than my husband)....seems very unfair that they're able to do this.

Hi CluckyKate
In a similar position but coming to the end of my 6 months so any withdrawal of the package would have less of an effect. The Group reps for the consultation have approached mgmt (financial services company) who have agreed to honour the maternity package on the basis that a) there are not a significant number of people on mat leave and therefore it is not a big dent to the finances, and b) those on mat leave are not in a position to immediately re-enter the jobs market. I would suggest that you approach your representatives and see what they are prepared to argue on your behalf if there is precedent in the market.
Good luck.

"seems very unfair that they're able to do this"

Do you mean it's unfair they are not required to pay 6 months full maternity pay to redundant employees?

V annoying yes, but actually no different to people who would have been in work not receiving their salary or bonus or other benefits once their employment has ended. Redundancy is horrible and financially devastating whether it's enhanced maternity pay or salary you are suddenly without. At least you will continue to get SMP after employment has ended.

Very often maternity packages are part of redundancy negotiations as GreenwichB says, so don't give up just yet, make sure that's part of the discussions.

I chaired a very large consultation process a couple of years back on the employee side. Things like giving people enhanced maternity pay were used as bargaining chips all the time - this is one of the benefits of group process (so long as you appoint people who you think are going to be able to negotiate well on your behalf). Depending on the size of the process something like this makes the firm look very good for relatively low cost to them.

Am wondering whether enhanced maternity pay would be classed as 'pay' for the purposes of tax, or 'severance pay' and therefore not taxable?

I think it would (or could) be severance pay ilove, because it wouldn't be pay that the employees were contractually entitled toin any way, it would be part of a negotiated redundancy package.

Am leaning towards opting for individual consultation. In total there are 25 of us affected, of which 17 will actually go - the rest will move into new roles.

I think I'm pretty clear on the severence package I'm after and am under the impression this Company will do the right thing (is world's 2nd largest food & beverage business).

Thanks for all the advice everyone - much appreciated