Redundancy or Reduced Hours

[ZestyMaximus]

I have been working full time for my company for over five years and have been on furlough since 1st April.

This coming Friday I have a meeting at work with my two directors. Originally casually over the phone termed as "a meeting to discuss your options" but I have subsequently received an official letter stating that this meeting is a "consultation meeting" and that I am "at risk of redundancy or reduced hours".

They have previously told me that come the end of the furlough scheme at the end of October staff including myself will be brought back in on drastically reduced hours (2 days instead of 5) or, if they do not agree to a new contract with the reduced hours, they will be made redundant. I'm not sure they should have told us this prior to consultation but still. As the company hopefully recovers, hours would be gradually increased back to full time.

My questions are:

1. If I choose the reduced hours option, can they force me to sign the new contract now? My concern with this is that I sign a contract for 60% fewer hours, they could five minutes later issue me with redundancy, now worth 60% less, before the ink is even dry on my new contract.

2. If I do sign a new contract for reduced hours now, how does this affect my furlough payments moving forwards? My concern here is that my furlough payments will then be calculated at 80% of two days per week rather than the usual five.

Thank you for reading and any advise or information that may help me navigate my options and make the best, well informed decision, truly gratefully received.

They can bring you back part time off furlough, so I would be asking for this initially!

Thanks for your reply ship. I'm confused by your answer though. I don't understand how asking them to do one of the very things I'm worried they're going to force me to do is going to help or change anything?

What I'm wanting to know is whether they can force me to sign a new contract now in July, for changes to contract that won't take place until November and whether they can make me redundant moments after signing a new contract (or moments after the contract comes into force) for fewer hours and lower pay.

Being brought back off furlough part time won’t impact your existing contract terms. Annua leave etc all remains the same as it’s temporary change

Thanks for your reply glass.

That would be true except for the fact that there won't be an existing contract anymore. It will be replaced with a new, part time hours contract. I've asked them directly if I get to keep my holiday, contract etc as the reduced hours would be deemed to be temporary and they've said no, it'll be a new contract or if I refuse, it'll be redundancy. They will revoke and reissue my contract for the reduced hours or, if I refuse, they'll make me redundant. If the busines does okay and is able to justify increasing my hours at a later date, they'll again reissue yet another new contract with the new hours. Keeping my existing full time hours contract while doing part time hours isn't an option they are willing to offer me.

Given that you're right and they absolutely could keep my existing contract but give me part time work because it's deemed temporary but they are refusing to do so is why I'm concerned about them giving me a new contract simply to reduce a subsequent redundancy payout and that that's their intention to make me redundant, but at far less cost to themselves due to new contract,

Ah, but more complex. Sorry, I can’t be much help. Hopefully some HR people will come along and be able to advise more. Good luck!

If you do get another contract for 60% less hours, it should have the date it is starting on e.g as of 1st October the changes to your contract will be....... therefore they can’t change anything on your existing contract till that date, so your current furlough won’t be affected and if they are going to make you redundant in October it will be on your old terms and conditions.

Presumably this problem is going to happen a lot to many many employees in all industries. Tricky.