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Friend got made redundant yesterday

14 replies

ThomcatIsForLifeNotJustForXmas · 23/12/2008 09:38

Nice, 3 days before Xmas. She could have been told that a few weeks ago, or after Xmas, but anyway.
It's a small events company, 3 other people plus friend, plus person being made redundant.

She's been told she has to work her 2 month notice still though - - is that right?

My friend was not given a letter, and the 'boss' was then unsure what time of redundancy she was giving her. She mentioned voluntary redundacy but didn't really know what that was! She also gave my friends 5 days to get back to her - ie Boxing Day!

Does anyone know what the statutory rights are of an employee of 2.5 years, what should she be offered as
voluntary redundancy
or statutory redundancy ??

OP posts:
SatsumaMoon · 23/12/2008 09:42

It can't be voluntary redundancy if they have said she is definitely being let go...

Notice period will depend on her contract - some companies will give pay in lieu if they want you out asap. Statutory redundancy is probably not a lot of money. Some big companies have good voluntary redundancy schemes but doubt if this would be the case for such a small company...

ThomcatIsForLifeNotJustForXmas · 23/12/2008 09:46

But her boss said she could make it voluntary redundancy if she'd like??

OP posts:
LoveBeingAMummyKissingSanta · 23/12/2008 09:56

Sorry don't know all the answers, but i fund the gov website quite useful in answering basic questions.

With regards to her notice, the law states that you have the right ot work your notice, or at least get paid for it. Its posible that they will release her early but not an obligation I belive. I'm sure flowery et al will be along shortly

ThomcatIsForLifeNotJustForXmas · 23/12/2008 10:02

Will direct her to government site for now.
Sounds like her boss hasn't got a clue about it which is so unprofessinal of her.
And why now - 3 days to Xmas. Surely she could have done this a couple f weeks ago?
Anyway, thanks foir info so far.
TC x

OP posts:
beanieb · 23/12/2008 10:12

Acas say..

on money

"You have the right to a lump sum 'redundancy payment' if you are dismissed
because of redundancy. The amount is related to your age, length of continuous
service with the employer, and weekly pay up to a maximum. The employer must
also provide you with a written statement showing how the payment has been
calculated at or before the time it is paid."

and on notice

"The employer must give at least one week?s notice for each full year of continuous
employment up to 12 weeks: for example if an employee has worked for 5 full years
then they would be entitled to 5 weeks notice. However the contractual notice is
more than the statutory then the employer should give the greater amount."

and on criteria

"Your employer should ensure that employees are not selected unfairly and must use
objective criteria when making a decision. You also have a right of appeal if the
selecting process has been unfair.
Various criteria should be used to make a decision:
? attendance record (if this is fully accurate and reasons for and extent of
absence are known)
? disciplinary record (if this is fully accurate)
? skills or experience
? standard of work performance
? aptitude for work
? Formal qualifications and advanced skills should be considered, but not in
isolation."

ThomcatIsForLifeNotJustForXmas · 23/12/2008 10:16

How kind of you, thank you

OP posts:
lou031205 · 23/12/2008 10:20

" * 0.5 week's pay for each full year of service where age during year less than 22

  • 1.0 week's pay for each full year of service where age during year is 22 or above, but less than 41
  • 1.5 weeks' pay for each full year of service where age during year is 41+"

Sorry, so your friend only has 2 complete years of service, so at best 3 weeks pay, and at worst 1 weeks pay

Her 2 months notice will need to be served, but her redundancy lump sum will be at best between £330-£990 because there is an earnings cap of £330 per week.

tiredemma · 23/12/2008 10:20

How shit TC.

Agree the boss doesnt sound as if she has a clue what she is talking about.

A close friend works as a HR manager for a large multinational company, she has spent the last few weeks making people (unfortunately) redundant, what she doesnt know about it aint worth knowing.

Im seeing her this PM to swap pressies, ill mention this and post what she says this evening (if you still need any info that is of course)

x

ThomcatIsForLifeNotJustForXmas · 23/12/2008 11:02

Thanks so much and TiredEmma - that would be great, thanks sweets, xx

OP posts:
flowerytaleofNewYork · 23/12/2008 13:02

Yes she can be made to work her notice. Notice is time not money, although some companies will choose to pay in lieu of notice, or to put the person on gardening leave.

She will get 2 weeks' pay up to a maximum of £330 for a week.

In terms of process, they must follow the statutory dismissal procedure, which involves a letter telling your friend that they are considering making her redundant, inviting her to a meeting to discuss it and giving her the right to bring a colleague or union rep with her.

Then they must have the meeting, then they must write again confirming her dismissal by reason of redundancy and confirm the pay she is getting.

Read here all about it.

Charlene1 · 23/12/2008 21:13

Your friend has the right to time off to look for work and go to interviews etc, although she isn't entitled to be paid for the time off.
If the company is insolvent, she will have to apply for wages/redundancy through the National Insurance Fund/RPO, so I'd tell her to try and get a job before the notice period is up, or she could be left with no money!!

I've been made redundant today - no notice, no wages. Payday was tomorrow - we're not getting it. Got told at 11am this morning we were in administration with no hope of saving the company. Gone, the day before xmas - bloody charming. Can't sign on, can't apply anywhere until next year. We may get our wages and some holiday pay in about 6-8 weeks from the Redundancy Payments office, but in the meantime no one can get anything. We should get a weeks wages in lieu of notice, but I doubt that will be on top of wages owed, due to insolvency. And the Benefits Agency has to process/investigate any claim for JSA which means you get nothing for about 6 weeks from them either, so I would tell your friend if she needs to apply for JSA, she has to ring the claimline well before she leaves, as you can't even get an appointment for 1-3 weeks with an advisor to actually claim dole money, as we all found out today!!!! Crap isn't it!!

fishie · 23/12/2008 21:24

charlene and thomcat's friend, so sorry to hear this. i hope you both find much nicer jobs in the new year.

ThomcatIsForLifeNotJustForXmas · 23/12/2008 22:00

Oh God Charlene, that's bloody awful, I'm so sorry

OP posts:
Charlene1 · 23/12/2008 22:28

Awww - thanks - unfortunately, I seem to make a bit of a habit of working for companies that go bust!!!
I think your friend may have been told that if she works 2 months notice she will get extra money, as years ago, I worked at British Rail and we got privatised and they told us all we were getting made redundant by the end of the year as the jobs had to go etc - so we had the option of going voluntary that week and getting £7k, working 1 month and getting £3k and possible re employment elsewhere in BR, or going 3 months later with Statutory Redundancy pay of hardly anything - I didn't want to leave at all, so I took the middle option but then didn't get one of the other jobs and ended up on the dole unfortunately.
It sounds like your friend isn't being given a choice really, so it seems strange they would make her work notice if it was standard redundancy - if it was me, I would write to the boss asking her to clarify which it is so she can find out her rights better, but tell her NOT to "agree" to the voluntary redundancy at all in writing if she can help it; as you cannot claim on household insurance/income protection or anything if you go voluntarily. Benefits Agency may also withold payment of JSA if they think you've given up a job and didn't have to as they tried that on with me after I left the railway, and I had to get a letter to prove it was my employer that were making me redundant and not me choosing to leave of my own accord!!!
That's why we all won't get anything now from them yet as they have to investigate if we have all been got rid of and not left our jobs today.
It is a minefield, especially if you are in shock and can't think straight!!
I hope she gets sorted and she can find something else soon!

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