Resignation before end of redundancy consultant period?

[mumstaxi2]

My current post is being made redundant under restructuring. The redundancy consultation ends tomorrow - Friday. I have this week accepted a new job at another company & so will not need to apply for any of the new jobs on offer. I have been told that if I choose not to apply for one I will be entitled to redundancy & they are looking at the new structure happening from 1st April.
My question is should I wait to let my employer know that I do not want to apply for one of the jobs until the formal paperwork comes out probably nearer the end of next week. I do not want to put at risk my redundancy payment by essentially resigning at this point. I'm just worried about timings as would like to start my new job in early April.

You would most likely not be entitled to any redundancy payment if you start a new job before the end of the notice period, sorry.

I agree, if you have a job to go to you won’t be made redundant. There is usually a period of “gardening leave” before you can start a new job.

Are you in a union? They could advise you.

If consultation ends this week have they said that your role would be redundant from that point then a period of notice that you need to work?

If they have said that you would leave 1st April then you don't need to tell them about the new job, just work your notice, get your payment and then start the new job.

Your decision as to whether to hold out for the redundancy should be based on how many years you've been employed there. If you've been there for 15 years, for ex, you'd hold on, but if you've only been there 3 (and so, unlikely to get a big fat payout) I'd just get on with your new job, a bird in the hand and all that.

They won't pay you redundancy if you've already got something else lined up, because redundancy is to compensate you for loss of employment, and on the assumption that you could have a period of uncertainty and no income while you seek new employment (hence why it's tax free).

I do not want to put at risk my redundancy payment by essentially resigning at this point

You're cutting it very fine accepting a new job and setting an expectation with them of your first day of employment when all this consultation stufff is still going on at your current company. If the timelines slip by a week or two, you could be faced with juggling a possible redundancy payout with seeing your new employer getting impatient about why you can't start when you said you could. And you'll be sitting in your current job wanting to get away but not able to tell your current employer that you need to leave to start a new job (didn't the new employer need a reference from them?)

It depends on the company - a previous one I worked for upheld redundancy payments if people only left just before the end of the consultation.

They treated everyone very well through the whole process.

” They won't pay you redundancy if you've already got something else lined up, because redundancy is to compensate you for loss of employment, and on the assumption that you could have a period of uncertainty and no income while you seek new employment (hence why it's tax free).”

No. That’s not how redundancy pay works! Redundancy pay is due when you lose your job due to it being redundant and you have met the length of service and pay qualifying requirements. Redundancy pay is not conditional upon the employee not having a new job to go to.

OP just wait until you’ve had confirmation that your post is redundant and that you do not need to apply for other internal jobs. Assuming the new structure starts 1 April there will be no need for you to resign, although this seems very late notice not to have had confirmation of your redundancy.

I work in HR if you resign before they confirm redundancy then you aren’t entitled to payment, if you leave prior to your given leave date again they could withhold payment.

Honestly I would just keep quiet about the new job until they’ve serve notice then I would say to them that you would like to negotiate a shorter notice period so that you can leave and start a new job.

I don’t know what your employer is like we wouldn’t have a problem with that we can never hold people up from starting a new opportunity but Some employers will keep you there until your last day. There’s no obligation I want you to look for an internal role so not applying for any of the other roles would affect anything.

There is provision in the Employment Rights Act for redundant employees to give ‘counter-notice’ if they wish to leave early because they’ve found employment elsewhere. The reason for termination remains redundancy. There is then a process where the employer can write to require the employee to stay in post. If the employee leaves anyway and the employer withholds redundancy pay, a tribunal would decide whether pay was due, depending on the reasons the employee needed to leave early and whether the employer was justified in refusing.

Try and play the game. When are you due to start the new job? If you have time I would have your consultation meeting- you only need one and say you are ok with being made redundant how can you make this happen as quickly and painless as possible. You may be able to get your redundancy package and then start your new job. Win win.

Yeah if the consultation ends tomorrow keep quiet and wait until that is done first.

I think it's fine to tell them you don't want to apply for any of the new roles, so they can go ahead and process your payout. You don't need to tell them you've got another job.

Assume you've told new job a start date after end of March?

Thank you for so many fast excellent responses.
In answer to a few of the questions. My new employer knows the situation - I've done some very part time work for them for a few years so they are now delighted I'm going to be joining them. So no worry re references or holding on for me to start. I'm just keen to get it all sorted now I've finally decided to go - I've been in current job for 9 years.
The company have a history of dealing with redundancy situations fairly. I've had two meetings over the past three weeks for me to ask questions about the new roles & structure. Given what people are saying however I that it till be safer to wait for the actual paperwork to come through later next week. I wouldn't want to risk losing the money!

I think if your new employer is aware of your situation and happy to wait then definitely keep quiet about the new job until the redundancy process is completed. No point risking the redundancy payment.

They won't pay you redundancy if you've already got something else lined up, because redundancy is to compensate you for loss of employment

You also lose what job security you have (having to wait 2 years before you can claim for unfair dismissal) and the benefits and salary in a new job may be less).

I think it's perfectly reasonable to hold out for a redundancy payment even if you have a job to go to.

HR bod here. Most employers will let you take redundancy if you find another job during consultation although they are not obliged to. Some stingy ones won't. Absolutely no way of telling what your one will.

If you've found another job, and it won't be easy for you to just get something else, I'd take it unless your payment is mega bucks.

If you can hold off resigning until after Friday that may help.

You seem to have the best of all worlds, an understanding new employer who knows your situation, doesn't need a reference and is flexible enough to let you come away with your redundancy, and if the timelines are as you suggest, a reasonably swift end to the consultation period with your current employer.

With 9 years' service in the bag, that's a reasonable payout, and worth waiting for.

You need to look at your employer's policy on redundancy. Not only will most have a clause about not being entitled if resigning before redundancy is confirmed, a number will also revoked redundancy payments if a job has been started X weeks after being made redundant.

”Not only will most have a clause about not being entitled if resigning before redundancy is confirmed, a number will also revoked redundancy payments if a job has been started X weeks after being made redundant.”

That would be unlawful if they tried to apply it to statutory redundancy pay, and in practice pretty unenforceable if they tried to apply it to enhanced pay.

a number will also revoked redundancy payments if a job has been started X weeks after being made redundant.

Really? So a company can make your job redundant, leaving you out of work, but prevent you from starting another job? This should not be lawful. I know there may be specific competitor clauses with resignations but even for redundancy I don't think that should be allowed. Somebody has LOST their job through no fault of their own.

Stuff that, I would tell them to take me to court.