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Redundancy

5 replies

Grumpymumma · 28/03/2024 14:04

Hi,

I have been made redundant on 3 months notice per my contract. My boss initially told me they would be able to pay me my notice period tax free as a compromise settlement and I would be free to find other work (I have been treated quite poorly during the process and this was her way of softening the blow). The FD has now said I need to work my notice period.
Do I have any cards to play, is there any way I could negotiate a shorter notice period plus a settlement? I really don’t want to work somewhere I am not wanted for 3 months and I want to put my energies into finding a new role.
Thanks wise women
(Ps I am aware I am being quite cheeky, but trying to find an upside to this situation)

OP posts:
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AuditAngel · 28/03/2024 14:25

I believe they cannot pay your notice period tax free as it is contractual. Only an amount that is non-contractual can be paid free of tax and NI.

I am in a similar position, being paid my notice period, I won’t be required to work it, bad enough that I have to go back on Wednesday and work for either 3 or 4 days, whilst pretending nothing is going on.

Good on you for looking at the positives, me too. Was about to book flights for the summer holiday, am planning on taking longer than my employer permits. If I get a job before the trip, hopefully employer will honour pre-booked trip, or I will change the flights.

good luck

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Mrsttcno1 · 28/03/2024 15:23

Hi OP, first of all, how long have you worked for this company? Your length of service will dictate what you are entitled to & will also determine to an extent how much swaying power you might have.

Ultimately, yes you can negotiate out of working your notice period, but if they have already said you HAVE to work it then they are not now going to offer gardening leave so your only “card” to play (which lots of people do play) is that if you can be allowed to leave and not work your notice then they don’t pay you for your notice, it saves them money so it’s usually a winner. But obviously that depends on your finances and if you can afford to be without that 3 months of pay.

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Grumpymumma · 28/03/2024 15:38

Mrsttcno1 · 28/03/2024 15:23

Hi OP, first of all, how long have you worked for this company? Your length of service will dictate what you are entitled to & will also determine to an extent how much swaying power you might have.

Ultimately, yes you can negotiate out of working your notice period, but if they have already said you HAVE to work it then they are not now going to offer gardening leave so your only “card” to play (which lots of people do play) is that if you can be allowed to leave and not work your notice then they don’t pay you for your notice, it saves them money so it’s usually a winner. But obviously that depends on your finances and if you can afford to be without that 3 months of pay.

Thanks, my 3 month notice period takes me just over the two year mark, so I will get a small settlement.
I’m just disappointed as I was initially offered (verbally) to have my notice period and redundancy wrapped up in a compromise agreement as they have treated me quite poorly. I was originally made redundant in October, then that was recinded and I negotiated the 3 months notice as part of my return. Thanks

OP posts:
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PickledPurplePickle · 28/03/2024 15:50

PILON is taxable and they can either make you work it or put you on garden leave. If you are on garden leave you are unable to start a new job until that time is up

You can of course negotiate with them, but with less than 2 years service you are not automatically entitled to redundancy pay, so it would be up to them

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Mrsttcno1 · 28/03/2024 16:04

Grumpymumma · 28/03/2024 15:38

Thanks, my 3 month notice period takes me just over the two year mark, so I will get a small settlement.
I’m just disappointed as I was initially offered (verbally) to have my notice period and redundancy wrapped up in a compromise agreement as they have treated me quite poorly. I was originally made redundant in October, then that was recinded and I negotiated the 3 months notice as part of my return. Thanks

Ah unfortunately then you really have no cards to play and no bargaining power. You can negotiate with them to not work your notice, but the only reason they would do that is if you said they would then not have to pay you for your notice, and it sounds like without the notice period you’re entitled to nothing in terms of redundancy anyway.

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