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Redundancy and new job with same employer

16 replies

Okki · 01/10/2023 21:24

I have had a Google, but I can't see. If made redundant, settlement agreement signed and employment terminated and you're then contacted by a different division of your previously employer and offered a job, can you keep redundancy money? No clauses in termination contract about re-employment.

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mynewusername2023 · 01/10/2023 21:35

How much time between termination and being contacted?

Okki · 01/10/2023 21:49

The same day.

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Okki · 01/10/2023 21:50

When they became aware person was leaving, though they didn't know about redundancy. Just suspected.

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Margo34 · 01/10/2023 21:54

Usually if your role is made redundant you're offered an alternative opportunity (eg in a other division or department) or a payout. If accepting a payout it's usually written into the acceptance of the settlement agreement that you can't work for the same employer for 6m from the date of redundancy, so it would depend on what your specific settlement agreement says.

Margo34 · 01/10/2023 21:54

*Usually, being the key word there

PercyMcPigface · 01/10/2023 21:58

Well it's their risk, not yours, if you're worried about the tax point of view! There are no rules in the legislation about this, because eg if you were made redundant from an HR role, and then got taken on as a bricklayer (clearly this is not a realistic example) then it is absolutely possible that the first role was made redundant. In reality, most companies would realise that the majority of roles were connected in some way and wouldn't do it.

As I say, their risk not yours though, so I wouldn't worry too much.

Okki · 01/10/2023 22:08

The roles are completely different and the one made redundant reported in the UK, the one being offered reports to another country and has the choice of 3 countries to be based in, including UK. I thought the 6 month rule would be there as standard, but nothing stated in contract.

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SunsetLazyDays · 02/10/2023 11:16

Redundancy money is tax free up to 30k

Focalpoint · 02/10/2023 12:34

Is the person/team making you redundant aware of the redeployment?

BlueYonder57 · 02/10/2023 12:50

You shouldn't be entitled to redundancy money if your employer has offered you another job the same day. That doesn't mean you can't have it, but there is a risk attached. We can't see the redundancy terms or the employers terms / contracts, but if they were to find out that you took the money in breach of the redundancy terms then they can claim the whole amount back. Nobody can tell you whether they will or not - but the only risk free approach is that you ask them, because nobody else can tell you the answer. Or you don't ask them, hope the don't notice, and accept that you could end up with a large bill?

User174085934 · 02/10/2023 12:55

If you haven't had the money yet and haven't actually left if the same day, that would be redeployment surely so I doubt you will get the money as well as they have redeployed you

Aprilx · 02/10/2023 14:17

It doesn't matter whether there is a clause in the redundancy letter about re-employment, the company could still have a policy about not re-employing somebody that has just been made redundant. And if they don't and if this actually happens, it would be down to some pretty poor HR and finance practices, to the point where I cannot imagine it happening.

Mangolover123 · 02/10/2023 14:27

Have you signed the letter and received the money?
If all has been signed, then I don't think they can take it back.
If you are going through the process then I suspect they may not pay out.
You can apply for other jobs I am sure but no continuous of service.
Your role has been made redundant, they could have saved themselves some money if they did their due diligence.

BlueYonder57 · 02/10/2023 15:17

Have you signed the letter and received the money?
If all has been signed, then I don't think they can take it back.

Sorry but this is incorrect. Not only could they take it back if it is paid in error (i.e. contrary to policy / agreement) but they can claim it back years later if they discover an error has been made. The OP is also equally responsible to knowing what the terms of the payment are - if they failed to tell the employer that they didn't believe they were entitled to it / weren't sure of the terms but took the money anyway, they could be dismissed. "If is all signed" means nothing - if you take out any other form of contract and fail to comply with the terms or deliberately fail to disclose something pertinent then it could be called fraud, and you do have to pay it back.

Mangolover123 · 02/10/2023 17:39

@BlueYonder57 I was assuming not paid in error. If the redundancy had all been sign, last day of work completed and money received. They the OP has the right to apply for another job, the company could of course refuse to employ her.
I am not suggesting doing anything under hand. It would be like being employed from scratch. I have seen this happen in a previous company.

Okki · 02/10/2023 17:47

Thanks everyone. The job offer has been turned down.

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