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Redundancy rules question

7 replies

Frazzled2207 · 03/01/2023 19:30

Hi
there are whispers about a redundancy programme at work- there has been a downturn in work and a lot of us are twiddling our thumbs.

a proportion of us (perhaps 30 out of 100) were hired between summer 2021 and summer 2022 due to a boom in work back then. Hence we have been there less than 2 years. Am I right in thinking they could get rid of all us “newbies” easily without consultation? I am aware that 20+ redundancies requires a consultation, if we had been there less than 2 years would we “count” towards the 20 if say they wanted to also let go of others who had been there longer?

my concern is that it might be far easier to get rid of everyone fairly new even though IMO this would not be fair as some of those people are highly valuable to the business IMO. Or is there a reason I’m not aware of why this approach would not be preferable.

also my notice period is 3 months. Does this mean If let go I would get 3 months pay, adjusted for holiday etc. (I would expect garden leave). Or does redundancy have different rules. My contract doesn’t mention specifically.

thanks in advance

OP posts:
Princessglittery · 03/01/2023 20:59

You would be entitled to 3 months paid notice. They can require you to take any annual leave during this period. They can require you to work your notice.

feministqueen · 03/01/2023 21:09

Short service redundancy process has its place but only if the business has considered the talent it might lose and if that's worth it.

If there's over 20 in total, including short service redundancy (they don't need to give you any notice for that- they can pull you into a room and tell you there and then) then they will need to submit a HR1 for collective consultations for those who are remaining.

Lots of businesses don't bother with SSR if they're making lots of redundancies. It saves them little time and it causes wider issues when people are there one day and gone the next.

Try not to worry - if it's going to happen then there really is nothing you can do to stop it. Maybe ensure your cv is upto date and have a look for other things.

feministqueen · 03/01/2023 21:12

Sorry posted too soon. Yes, if you're selected for redundancy you will be entitled to your notice (they may require you to work or they could state PILON) as well as any holiday accrued but untaken (they may require you to take it during your notice period if you work it) as well as a redundancy payment (no entitlement under 2 years service but if they have an internal policy then they'll let you know)

Tomblibooz · 03/01/2023 21:26

Last in, first out isn't an acceptable reason for redundancy selection on it's own but as you are less than 2yrs service a) you have less rights and b) it's much cheaper than a long-standing member of staff therefore it's still quite common I imagine. Depends on the level of redundancy required to keep the business going and secure the other roles longer term.

You'd get 3 months notice but as PP have said, holiday may be rolled into that and you don't necessarily get to specify garden leave. You could however request PILON (pay in lieu of notice) so you get a lump sum and can move on straight away.

ACynicalDad · 03/01/2023 21:34

Newish people aren’t always the ones they want out. Those that have been there years can be much harder to shift and this can be seen as their best chance to remove some of them. Whilst more expensive to remove in the short term if they are near the top of pay scales and maybe not that engaged they can still be better value to remove. I would start looking around but your 3 months won’t even start until the end of any consultation period so don’t get too worried yet. Also if a few people get wind of this and find jobs then this may not even happen - but the company can lose the best employees, who get offered jobs quickly, and end up weaker than before.

Frazzled2207 · 04/01/2023 11:17

thanks for these insights - very helpful
I should clarify I like the company and my colleagues very much and my preference is to ride the storm and hope for the best but try and be prepared for the worst at the same time. Similarly I doubt people will leave in droves.
I hope I'm wrong about the "last in first out" approach - this is just me musing as I suspected it could be easier for them with so many newbies - and hopefully whatever process there is, if indeed there is, will be fairer.

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