Redundancy less than 2 years service

[BuilderBetty]

Due to a business restructuring my role will cease to exist in June when I will have 21 months service. I have a 3 month notice period and they will need me right up until June. I have not been placed at Risk but I suspect this coming. Can anyone explain what I need to consider re 2 years service and whether I will be treated differently as technically at the date of completion I will have less but is my 3 month notice period would take me to the 2 years? And what additional protection does the two years give me? There will be no suitable alternatives (specialist role). Im not entirely gutted at the prospect of a payoff but will I actually be entitled to anything other than my notice period/possibly PILON?

@BuilderBetty yes the notice period will be taken into account so you'll be over two years service.

Depends on a few factors. Are you a standalone role or are you being pooled with a group of people and scoring applied? The two years essentially means they can't conveniently skip process, maybe see if they have a redundancy policy.

As it's over two years you'll get stat redundancy (unless they offer more - hence check policy) this is tax free up to £30k, plus your notice and any accrued but untaken holiday (taxed as per usual). You should also get payment as consideration of lost benefits during notice period but this normally isn't a huge amount.

Hope that helps!

Yes it’s a standalone role (technical SME for a product they are discontinuing and not general skills transferable to other products).

Im worried they serve me three months notice in April so I’d finish in June with less than 2 years service?

I would imagine they will give you three months notice in April tbh.

@BuilderBetty oh apologies, I thought you had 21 months service now.

Then yes, they may well do but stat redundancy wouldn't have been very much to be honest - hope everything works out for you x

Ha I was afraid they might do that. They are a pretty decent company and I dont feel like they treat us poorly as a workforce, but I guess if they are not legally obliged to offer me anything and can spare the cost of a redundancy pay-off, they probably will do that. We do have enhanced redundancy terms (4 weeks pay per full year completed) but think you still need the two years service to qualify.
So it looks like I might well get punted at the end of June with nothing at all :(
I guess I better get looking for another job now then!

If they genuinely need you to stay until June though you're in a better position to negotiate terms despite less than 2 years service. They may be willing to offer reasonable redundancy terms in exchange for your agreement that you won't swan off early to a new job (speaking based on the experience of a friend). Good luck!

It makes very little difference though there is a small financial benefit to getting to the 2 year mark.

From a process perspective it will all be the same, they will officially notify you that you're at risk, provide you with the justification for why your role is no longer needed, give you an opportunity to make suggestions for how to save the role, tell you about any other alternative roles that might exist in the company. If no alternative and your suggestions aren't accepted then you will be made redundant. They will either ask you to work your notice or pay you in lieu.

The small financial benefit is that from 2 years service you are entitled to statutory redundancy pay which is:

•	half a week’s pay for each full year you were under 22
•	one week’s pay for each full year you were 22 or older, but under 41
•	one and half week’s pay for each full year you were 41 or older

Length of service is capped at 20 years.
Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.
If you were made redundant on or after 6 April 2023, your weekly pay is capped at £643 and the maximum statutory redundancy pay you can get is £19,290.

@FlabMonsterIsDietingAgain this is really helpful thanks in particular:

Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.

I am due to get an annual bonus in March…will that be considered/ taken into account in my average pay? That would make a massive difference!

I don't believe so because the bonus is generally considered a non-contractual discretionary payment but might be worth checking with ACAS

Ah I’ve just realised it wouldn’t matter anyway as I’m not going to get to the two years if I am given notice in April :(
Thanks for the intel…I’m off to dust down my CV!