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Possible redundancy but not sure how it works!

3 replies

lechatnoir · 07/12/2011 18:43

My company has just been taken over and it looking likely that my work will be taken over by their head office which I assume will mean redundancy. I've worked there 12years (if you include 2 lots of maternity leave) and my rather basic contract doesn't include reference to redundancy just 'termination of employment by either party' being 1 week per year to a maximum 12 weeks.
So, if I get made redundant will they just put me on 12 weeks notice & I'll work the 12 weeks and then go, Or, will I have to leave instantly with 12 weeks pay (& is it tax free?) and is statutory redundancy only for those that don't get anything else or would I get this too?

Also, if they do decide to keep me (either doing current job or something else) can they suddenly make me go FT or stop my day working at home? Obviously I'd need to make child care provisions which could take months but if I refuse then where would I stand then?

Arrrggggg why don't these companies just tell the staff what's happening - it's been 3 weeks since they announced the take-over and no one has a clue what's going on with their jobs Angry!!!

OP posts:
hairytaleofnewyork · 07/12/2011 19:30

If your post is made redundant they must give you notice (as per notice period). They may or may not expect you to work durimg your notice period.

Additionally they will pay you a redundancy payment ... And it sounds like they will pay you statutory redundancy pay (you can read more about that on the following link.

www.direct.gov.uk/redundancy.dsb

Ellypoo · 08/12/2011 09:36

If they paid you in lieu of notice (PILON) rather than asking you to work the 12 weeks, that is subject to PAYE & NIC.
Stat Redundancy Pay however, isn't.
Hope you find out what is happening soon - it must be a very difficult time for you all, not knowing what will happen.

flowerytaleofNewYork · 08/12/2011 14:34

Whether PILON is subject to tax depends on the contract. If the employer is contractually entitled to terminate immediately and pay in lieu, then it's normal remuneration and therefore subject to tax.

If there is no provision in the contract or similar allowing the employer to do that, then they are basically breaching the contract by giving no notice, and PILON would effectively be compensation for loss incurred by that breach, therefore not subject to tax.

In terms of changing your hours/working location, it would depend on various things as to whether they could do that. Probably not. In that case it would probably be about offering you alternative employment and if it's not suitable (which means same or no less favourable terms and conditions) then you can decline it. So if you currently work 3 days a week including one day from home and they offered you a F/T position based solely in the office, you would be able to refuse that as being 'unsuitable' and still be entitled to redundancy.

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