Business I work for at risk of collapse/takeover what would you do RE redundancy/job offers

[YeahWellWhyNot]

Rambling message sorry. As title says. Company I work for are at risk of Collapse/maybe a rescue takeover. Chance of restructuring of the company in the next few months is high. I've been caught up in restructures before and my god it's stressful. Had a job offer elsewhere although it's around £250 less a month plus a reduction in leave etc. Probably doesn't seem a lot but I have 3 small kids. DH also works for same business. I don't think I can accept the offer, it's a new field, which may bring new stress + the risk of probation. Where I am I am happy, reasonably well paid and have the work balance I need right now with the kids. I'm worried however if the company goes into some sort of administration etc I'd lose redundancy pay. I've been there 10+ years. And as I said DH and I are essentially in the same boat.

Do I stick it out? Do I accept a new job even at a cut? Keep looking? I'm so confused I feel like I'm losing confidence in every decision

Thank you

Stay for your redundancy- if it even comes to that.
But keep your eyes open for an Option C on the same or more money.

Look into what you would actually get as redundancy if the company is insolvent. It’s not a lot. The government will cover some but not all and the rest sits as a claim with the insolvent company.
the risk of both you and husband being out of work seems high and the potential pay off will be quite low.

@Iwilladmit that's what I'm worried about.

I don't know what to do. Keep looking for another job I guess 😔 my fear is if I take the lower paid job I will watch my current business be rescued...if I don't we could lose everything.

Which possible negative outcome is worse:
both of you being made redundant, or
watching the company be rescued whilst you’re elsewhere?

Noted.

Job hunting it is!

You have two eggs in one basket - you could have one egg in another basket. Is your DH also considering his options? It doesn't have to be you that moves...

Yeah it's possible he could move although I'm the higher earner. That's why I'm struggling to find jobs, I work part time and earn quite well. The job I was offered will put me at least £250 per month worse off, sometimes even more as I'm tied into childcare voucher scheme which would end if I move company

I have to rule this job out, but keep hunting I guess. Hope something comes up which meets/betters my current salary 🤞🏼

How much is your salary versus statutory insolvency payments? I think that would influence my decision making. I've been made redundant due to company insolvency and lost quite a bit due to the limits (I didn't qualify for redundancy, but I was owed wages, holiday pay, notice period etc.)

I think you both need to job hunt. As your exposure to risk is high now with both working at the same place. It depends on your buffer as to whether it's worth taking a lower paid job. The childcare vouchers although a useful benefit even at most is only some tax relief and although the new system is less advantageous there is one and it's only useful for a relatively short time

Good luck. The uncertainty is horrible!

Thanks, the childcare comparison calculator suggests that the vouchers save us an additional 2k over the tax free element which isn't to be sniffed at. I will keep job hunting just feels like I need to go into panic mode 😔

Absolutely the 2k makes a difference but once children are in school I find you can't really use the full allowance anyway but if you're locked in it's that current amount or nothing so we've settled with building a bit of a surplus and then we will stop. I think I was just trying to make the point it's quite short lived. But 250 less a month plus losing that is considerable I agree.

Absolutely the 2k makes a difference but once children are in school I find you can't really use the full allowance anyway but if you're locked in it's that current amount or nothing so we've settled with building a bit of a surplus and then we will stop. I think I was just trying to make the point it's quite short lived. But 250 less a month plus losing that is considerable I agree.

Have you asked the company who've made you an offer whether they will match your current salary/leave? There's no harm in asking surely?

If you've been there 10 years you could get around £7k in redundancy if the company becomes insolvent. Possibly more, depending on your age.

Whether it's worth waiting for that depends on your salary and how easily you think you'll pick up another role. Obviously if you're on £100k and other similar roles are hard to come by, waiting for the sake of £7k ish probably isn't worth the risk. If you're on £24k, much more worth it.

In my shoes I'd hang on for the redundancy payout. I'm pretty sure I could walk into another job paying two thirds of my current salary and the £7k (tax free) would give me several months buffer whilst I found a job that matched my old salary. Still a risk of course but one I'd be comfortable with as the odds are I'd come out better off financially than if I just left.

I earn 31k as I'm pro rata. 50 ISH k FTE.

The massive probability is the company will require take over/go into administration . I suspect redundancies at this stage. I think the company will then be saved but perhaps in a new format. It's whether we will both survive what may likely be a brutal striping of the business.

Yes I did ask the job offer for more money but they have said no. As I said, it's the same ISH role except in a different sector so their argument is I would require training.

OK so assuming it's stat redundancy it's just over 8k. My husband's will be similar. That will give us a buffer at least.

Thanks everyone.

If you decide to hang on, I'd just put yourself in the best possible position in case of redundancy.

Get your CV perfect and ready. Write several application letters (or the basis for them anyway, easily editable so as to be ready to go). Write, practice and learn a number of competency based interview examples. Basically, act as you would if you have a big interview coming up and prep for it.

I'd also be scouring jobs and keeping an eye on the market in your area, even if not actively applying. And sign up to job alerts where possible for certain employers.

And you also must be given 12 week notice before being made redundant- so if they dont give you that you can claim for that too - so 10 years at the maximum rare of 700 per week - i think they deduct £91 per week off because you can claim job seekers - id definitely hang on and see what happens xx

Remember that is tax free too.

Thanks so much 🙏🏼 🙏🏼

You won’t necessarily get full stat redundancy. Check out The Insolvency Service website - they will pay you some of stat redundancy but if the company is insolvent you may not get the rest and if you do it’ll be after a period of time.