Redundancy questions

[MumofTeenDespair]

It’s extremely likely my company will need to make redundancies in 6 months’ time, after the next Gov support scheme ends. I’m even thinking of volunteering as it wouldn’t be the total end of the world. Haven’t been happy there for a long time so maybe this is the kick up the backside I need. I’ve read on Gov website that notice period for redundancy is 3 months. Is that from both sides? What I don’t want is to sabotage my pay out by finding a new job too soon.

Also, if my company were to end up literally unable to pay redundancy money (ie insufficient funds) does the Gov step in and pay it?

I’ve been in job for 11 years and payout would be £6k which I really would like to have as a safety net in these uncertain times. Just wondering how safe it is to be sure I’d get it.

”I’ve read on Gov website that notice period for redundancy is 3 months.”

Goodness which site did you read that on? Notice periods are the same regardless of the reason for termination. Your notice period will be in your contract, and there is also a statutory minimum of one week per year of employment (to a maximum of 12 weeks) so if that’s more than your contract says, the statutory minimum will apply.

If your company is insolvent you should be able to claim unpaid redundancy pay/notice pay from the National Insurance fund.

It’s here.

My main question is what would happen if I was offered a new job during that 3 month notice period? I suspect my employer would be happy to let me go sooner but I don’t want to miss out on my lump sum. My contract, btw, is one month’s notice.

Ok so 11 weeks in my case

If you were offered a job during your 11 week notice period your employer would probably be happy to release you early. Obviously you wouldn’t be entitled to any remaining notice.

But would I still get my redundancy? Just checking it doesn’t go from ‘being made redundant’ to ‘normal leaving to get a new job’. Checking for loop holes as I don’t trust anyone!

Probably depends on discretion. My company several years ago still paid out if people left in last month or so. There had been a 6 month lead up to it.

@MumofTeenDespair

But would I still get my redundancy? Just checking it doesn’t go from ‘being made redundant’ to ‘normal leaving to get a new job’. Checking for loop holes as I don’t trust anyone!

No you won’t. The leaving would override the redundancy. You don’t get both.

if you want to leave before your employment formally ends to start employment elsewhere then you are essentially resigning. and the company don’t have to pay you redundancy. HOWEVER if the company are happy for you to leave earlier then they can amend your exit date, but you wouldn’t receive any payment in lieu of the remaining notice period. It really depends on the goodwill of the company.

It would be a notice not redundancy. Just been through consultation, managed secure a role in new structure thankfully. My package would have been statutory redundancy, pilon, pay in lieu of notice in my case three months pay and holidays. You need to check your contract.

Contract says very little that’s relevant other than 4 weeks’ notice. I think then I’ll sit tight. Wait for redundancy with the statutory 11 weeks notice (in my case, if I’ve understood correctly). Work that period and then only apply for jobs once the 6k is in the bank. My employer (boss - owner of small company) might be open to some kind of mutually agreed plan as she’s desperate to downscale the staff but I don’t 100% trust her and don’t want to make myself vulnerable.

@MumofTeenDespair

But would I still get my redundancy? Just checking it doesn’t go from ‘being made redundant’ to ‘normal leaving to get a new job’. Checking for loop holes as I don’t trust anyone!

Yes you probably would. It would be risky for your employer to withhold it particularly if they don’t object to you leaving early. For explanation see photo

Thanks for your replies all. Very helpful!

It is best to check with ACAS who are experts in these matters. Their advice is free but they are very busy at the moment.

you cant be on the new job support scheme and be on a notice period for redundancy. so if they want to amex you redundant you need to either be taken off the scheme or the notice period needs to start when it ends.