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Redundancy payment conundrum

39 replies

Theworldismadness · 28/02/2024 08:51

I am potentially getting made redundant. I have an interview for a job outside my organisation tomorrow. If I get it, can I withdraw from the ring fenced internal interview and get made redundant so I can get redundancy payment and still take the external job? Or is this dodgy/fraud?

This has been an incredibly stressful situation so I feel walking away with nothing is unfair but at the same time it's unfair to the organisation if I've found something as I'm not technically redundant. I'm not sure what to do at this stage.

There's no voluntary redundancy on offer so it would only be normal redundancy to consider.

Thanks for any thoughts or experiences of this.

OP posts:
Neriah · 28/02/2024 17:14

Theworldismadness · 28/02/2024 12:49

That's useful to know and the sort of stuff I was wondering about. Where did you find this legal stuff as I'd like to read more.

There's some stuff about it here https://www.citizensadvice.org.uk/work/redundancy/check-your-rights-if-youre-made-redundant/if-youre-being-made-redundant/redundancy-notice-period/

But it's "just stuff I know" from dealing with lots of tghem through the union.

And I am going to say it again because people will insist that "what they did" and the law are the same thing. If you refuse to be considered for alternative employment or get a job before your statutory notice then you are not entitled to redundancy pay, and if you hide the fact then your employer can legally reclaim the money. Many employers won't bother - they may be happy to solve at least one problem. But despite all the assertions here, nobody can tell you that your employer will think like that. It is for you to balance the risks. I can only tell you what that risk might be.

Your notice period during redundancy

Find out what notice pay you get and how long your contractual or statutory notice period should be, including if you get garden leave or pay in lieu of notice.

https://www.citizensadvice.org.uk/work/redundancy/check-your-rights-if-youre-made-redundant/if-youre-being-made-redundant/redundancy-notice-period

PeggyOlsen47 · 28/02/2024 17:29

I would wait until you are officially told that your role is being made redundant. Often times, those affected are allowed to begin looking for other work/time off for interviews etc - certainly this has been the case for me on the two occasions I was affected. When are you likely to know? You could still proceed with the external interview, but perhaps drag your heels a little / ask if there is the potential to start at a later date (if you are offered the role), that way the timings could be more aligned.

Beingboredisgoodforyou · 28/02/2024 17:37

Theworldismadness · 28/02/2024 12:49

That's useful to know and the sort of stuff I was wondering about. Where did you find this legal stuff as I'd like to read more.

Sorry but it's not useful it's bollocks!
@Sunglassesweather description is more accurate as to what actually happens.If you're still uncertain give ACAS a call. https://www.acas.org.uk/contact

Beingboredisgoodforyou · 28/02/2024 17:45

Neriah · 28/02/2024 17:14

There's some stuff about it here https://www.citizensadvice.org.uk/work/redundancy/check-your-rights-if-youre-made-redundant/if-youre-being-made-redundant/redundancy-notice-period/

But it's "just stuff I know" from dealing with lots of tghem through the union.

And I am going to say it again because people will insist that "what they did" and the law are the same thing. If you refuse to be considered for alternative employment or get a job before your statutory notice then you are not entitled to redundancy pay, and if you hide the fact then your employer can legally reclaim the money. Many employers won't bother - they may be happy to solve at least one problem. But despite all the assertions here, nobody can tell you that your employer will think like that. It is for you to balance the risks. I can only tell you what that risk might be.

No mention of fraud on either this or the ACAS website. For something as serious as fraud there'd be some mention of it, but no, nothing.

Neriah · 28/02/2024 18:49

The OP is welcome to go read the law if they want, as is everyone else. But it isn't "bollocks" and I don't particularly give a shit what people think. Potted law doesn't cover everything or all eventualities. It isn't me who gets screwed. If you don't qualify for redundancy payments in law, and take them anyway then the employer can reclaim them. Up to the OP what they want to do.

littlemousebigcheese · 28/02/2024 18:56

Depends on a few things

What stage of redundancy is the company at? Have rep consultations happened yet? Have you had individual consultation? There is a min time that this can take (no max though) which might help with planning next steps

You can be honest with new job/recruiter and ask that you be given time before signing new contract. Do not sign yes until you have redundancy confirmation otherwise you are on sticky ground.

Schoolhelp23 · 28/02/2024 19:33

Can I piggy back with a question please...

If you are at risk of redundancy, and apply for a newly created role (at your current level), and don't get it, do you then have to take statutory redundancy? Do you only ever recieve voluntary redundancy (with an enhanced amount) if your role no longer exists and you don't apply for anything?

Ilovemyshed · 28/02/2024 19:36

It is not fraud, its looking after your own interests. Go through the redundancy process and see what happens. Go to the interview and see what happens. Then make a decision once your options are in front of you.

There is nothing wrong with redundancy on one day and starting a new job the next.

Ilovemyshed · 28/02/2024 19:37

Theworldismadness · 28/02/2024 09:46

I suppose the worst that happens is I just don't get the payment right? Which I won't get anyway if I resign (if I get this job). So no worse off I guess.

Ideally you want to engineer it so you get both!

Sunglassesweather · 28/02/2024 19:55

I really don't think it's a case that you're not entitled to redundancy if you have a new job lined up. Your role is being made redundant, end of. What you do next is irrelevant.

Your new job could pay far less, only be a temp contact etc etc.

Redundancy is there to compensate for you losing your specific role/tenure at the company.

FlabMonsterIsDietingAgain · 28/02/2024 20:15

Schoolhelp23 · 28/02/2024 19:33

Can I piggy back with a question please...

If you are at risk of redundancy, and apply for a newly created role (at your current level), and don't get it, do you then have to take statutory redundancy? Do you only ever recieve voluntary redundancy (with an enhanced amount) if your role no longer exists and you don't apply for anything?

Voluntary redundancy is a different process completely. Once a consultation has been announced and you are advised your role is at risk you are under the terms of that process, it might be enhanced if that's what your contract says but these days it's more likely to be statutory. That amount will be the same whether you apply for other roles and are unsuccessful or not.

Voluntary redundancy is offered out occasionally to prevent the company needing to go through a consultation or if there are individual circumstances whereby a single person is no longer able to do the role and the company want to offer them a positive way to exit.

Schoolhelp23 · 28/02/2024 20:42

@FlabMonsterIsDietingAgain Thank you - So I just need to ask if it'll be the enhanced amount in my consultation meeting?

FlabMonsterIsDietingAgain · 28/02/2024 20:47

Schoolhelp23 · 28/02/2024 20:42

@FlabMonsterIsDietingAgain Thank you - So I just need to ask if it'll be the enhanced amount in my consultation meeting?

They should present you with a statement showing what you will be entitled to, that's how it's always worked when I've been put at risk (5 times).

Get a copy of your contract now if you can, that will tell you if you are contractually entitled to enhanced redundancy pay.

Bosabosa · 28/02/2024 20:54

I have worked in HR a long time, getting a Job externally and taking the redundancy payment knowing you have another Jon is absolutely fine. It is only an issue if you want to leave sooner than the notice period and they don't agree to shorten your notice. Redundancy applies when your current role is made redundant, it is nothing to do with any external roles you may then be offered.

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