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Redundancy - Quick bit of advice/info needed.

All,
Thanks for looking,

Missus is potentially being made redundant, been working for Greenwich Council for 12 years.

3 years ago she changed from Full time to Part time with a new contract.

If she was to be made redundant would they only honour the last 3 years or have to honour the full 12 years service? (same job role)

Thanks again
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Comments

  • All 12 assuming no break between the two contracts.
  • Only Maternity leave

    Thanks for reply
  • Perfect Thank you,

    She had a year off Maternity Leave hence the change from Part time to full time

    So if she was to get the full 12 years it would all be calculated on her current part time salary?

    Thanks again
  • I think if she's over 42 there is an increase, type in redundancy calculator on google, there's (I believe) a government website you can type in your details and it will calculate her entitlement
  • edited May 2016

    CPL, your wife's redundancy payment would be based on total number of years' continuous service (ie 12 years), but would be calculated on her current (part-time) salary. I've worked as an HR Manager for over 25 years, but always in the private sector. However, no reason for redundancy legislation to be applied differently in public sector. If your wife has had continuous service of 12 years with same employer, then redundancy payment must be based on this. Hope this helps/reassures you both.

    I don't think this is quite correct.

    Usually the method is to add the part time service pro rata to the full time service giving,say, 10.5 reckonable years, assuming 2.5 days per week, multiplied by the full time salary.

  • I agree with ValleyGirl, but to be certain you should check with RBG's HR.
  • Yeah cheers looked at the Calculator before but all companies have their own Redundancy packages, think the government website one was Statutory.

    I was more asking the question regarding if she would get the full 12 years or if she would get offered the payout from when she changed her new contract 3 years ago.
  • In private sector, the employer would base redundancy payment on current part-time salary. There is certainly no legal obligation to take number of years' service working full-time into account, but the way Greenwich Council calculate redundancy pay might be different, if they pay enhanced redundancy pay (over and above statutory redundancy). It's worth your wife finding out if her employer publishes their redundancy policy and payment terms in their employee handbook. As well as checking with HR (as Covered End suggests), if your wife is a union member, her rep should be able to advise, particularly as Union reps are aware of deals that have been struck for previous redundancies.
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  • Thanks again, they have a full meeting Friday with Union Reps in attendance for the whole workplace where they will supposedly be receiving their offers.

    Massive restructure is the reason,
  • A few thoughts -

    As regards the statutory minimum redundancy pay, I agree with ValleyGirl. It's continuous service with employer rather than time in current job that counts - otherwise a lot of employers would offer promotions one week and redundancy notices the next...

    I worked for a local authority some time ago, and at that time, there was a contractual redundancy scheme that offered more than statutory minimum (employers can offer something more than the statutory but not anything less) - I'm aware that T&C have been under attack for some time and there are now more local schemes rather than national conditions. The employer and union rep will be able to provide more info.

    If not stating the obvious, this page (from Citizens Advice) might be worth a look / bookmarking for future reference.

    Again, I'm a bit out of touch, I think there were enhanced payments if you went on voluntary redundancy rather than compulsory, but there's no legal right to enhanced payment for voluntary redundancy, nor is there any obligation on employer to seek volunteers, or to let everyone who volunteers go (one of my past employers usually got more people eager to leave than they actually wanted to get rid of)

    Life can also become a bit uncomfortable if you volunteer for redundancy but don't get it (said former employer seemed to have realised it was cheaper to make peoples' work intolerable so they would quit sooner or later rather than pay redundancy.)

    You may want to check, but I think voluntary redundancy is still OK for claiming (national insurance contributions based) Job Seekers Allowance (you're likely to be ineligible if you just resign) - Mrs should be able to claim for (I think) 6 months before your income and any savings are taken in to account.

    Voluntary redundancy may not be OK for any private insurance (e.g. mortgage protection) though so if that applies then check the small print carefully.

    Also, might not be relevant, but trust you (and Mrs) are aware that employers are not allowed to treat part time workers less favourably than full time workers. More about this (from ACAS) here.

    Best of luck.
  • A few thoughts -

    As regards the statutory minimum redundancy pay, I agree with ValleyGirl. It's continuous service with employer rather than time in current job that counts - otherwise a lot of employers would offer promotions one week and redundancy notices the next...

    I worked for a local authority some time ago, and at that time, there was a contractual redundancy scheme that offered more than statutory minimum (employers can offer something more than the statutory but not anything less) - I'm aware that T&C have been under attack for some time and there are now more local schemes rather than national conditions. The employer and union rep will be able to provide more info.

    If not stating the obvious, this page (from Citizens Advice) might be worth a look / bookmarking for future reference.

    Again, I'm a bit out of touch, I think there were enhanced payments if you went on voluntary redundancy rather than compulsory, but there's no legal right to enhanced payment for voluntary redundancy, nor is there any obligation on employer to seek volunteers, or to let everyone who volunteers go (one of my past employers usually got more people eager to leave than they actually wanted to get rid of)

    Life can also become a bit uncomfortable if you volunteer for redundancy but don't get it (said former employer seemed to have realised it was cheaper to make peoples' work intolerable so they would quit sooner or later rather than pay redundancy.)

    You may want to check, but I think voluntary redundancy is still OK for claiming (national insurance contributions based) Job Seekers Allowance (you're likely to be ineligible if you just resign) - Mrs should be able to claim for (I think) 6 months before your income and any savings are taken in to account.

    Voluntary redundancy may not be OK for any private insurance (e.g. mortgage protection) though so if that applies then check the small print carefully.

    Also, might not be relevant, but trust you (and Mrs) are aware that employers are not allowed to treat part time workers less favourably than full time workers. More about this (from ACAS) here.

    Best of luck.

    Cracking post thanks for your time.

  • The council will definitely offer more than statutory and it will be from the date she started with the council (or possibly earlier if she worked for another council before and then came to Greenwich). If there are a lot of people going, they may sweeten it and offer more just to get volunteers.
  • All,

    Sorry again.

    Missus has rec redundancy offer,

    She has just been told that if she accepts a new job before the 1st of October then they will not receive any redundancy at all. I believe her contract finishes in August and she still has to let her current employers know by Monday if she wants to accept redundancy.

    She has a interview for a new employer Tuesday.

    Does this sound right?
  • When I was made Redundant my last day was 31st July... If I'd have found another job prior to that date I'd have been given no redundancy money because I was effectively leaving of my own accord.

    For you though it sounds as though your missus is being made redundant on 31st August yet if she isnt allowed to find another job until 1st October (If she wants to take the pay) then that sounds an absolute joke!!
  • theres a poster called Bob Munro (i think hes an HR man ) reckon he d give you good advice
  • cheers, the thing is its in education and most places want post filled in September ready for new term.

    Ive suggested maybe playing them at their own game and working voluntary in new post until 1st of October and then accept the contract.

    Shed lose a months money but gain 12 years redundancy.

    That saying she only has an interview and hasn't got the job.
  • edited June 2016
    To add, she has been told her contract finishes on the 31st August and she has to have a break of service of 1month and 1 day. Hence cant accept a new post until 1st October.
    She would not be working for the same employer, still under a Local Council but a different borough.

    If this is the case of Local Council rules and she gets no redundancy then they I would have thought they would have to honour continuous service?
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  • The thing is she wouldn't be leaving of her own free will, she has been told there is not enough jobs due to restructure and there are people who are either pregnant or on maternity leave who have first refusal to the jobs (equal opps yeah right)

    So effectively shes being told shes not allowed to work for a month, really seems odd to me.

    Shas has been asked if shed like to cover the maternity leave though............
    12 years continuous service, probably about 2 weeks sick in total during that duration. no respect or gratitude imo.
  • edited June 2016
    If your wife is being made redundant on 31 August and is on garden leave for the notice period (looks like a month) then her effective date of termination is 30 September - hence the 1 October date.

    If she started a job before 1 October it would be considered a resignation as she is still legally employed by her existing company. In those circumstances her existing employer could stop the redundancy pay.

    The best thing for her to do is explain that to any new employer, state that she couldn't start until 1 October or better still mid-October and ask her new employer not to seek references before 1 October - that way the existing employer isn't aware of the new job offer and it therefore avoids any dodgy dealing by them.
  • Cheers Bob

    Would the working voluntary scenario for a month then accepting a contract from the 1st of October be a possibility you think?
  • Talking of redundancy, my wife's firm have gone into receivership this week - has anyone used the Governments Redundancy Scheme for firms in receivership and do they have any advice?
  • Cheers Bob

    Would the working voluntary scenario for a month then accepting a contract from the 1st of October be a possibility you think?

    I would advise not. If that month is garden leave then she is still working for her existing employer.
  • Addickted said:

    Talking of redundancy, my wife's firm have gone into receivership this week - has anyone used the Governments Redundancy Scheme for firms in receivership and do they have any advice?

    The insolvency practitioner should send your wife the forms to complete. Money is taken from the National Insurance Fund and covers statutory redundancy, statutory notice, untaken accrued holiday (up to six weeks). Any payments are capped at £475 per week. It's a straightforward process.

    If your wife doesn't hear from the insolvency practitioner within say a couple of weeks then get her to contact Companies House - they will be able to confirm who it is (it may well be the Official Receiver).
  • My view, for what it's worth, is it all comes down to how much she will get as a pay off. If it's peanuts and less than the salary she will earn by starting a new job then it's not an issue. If it's a reasonable sum then tell her to grab the money and take a break until October.

    Don't share the redundancy details with us, it will go against the compromise agreement
  • bobmunro said:

    Addickted said:

    Talking of redundancy, my wife's firm have gone into receivership this week - has anyone used the Governments Redundancy Scheme for firms in receivership and do they have any advice?

    The insolvency practitioner should send your wife the forms to complete. Money is taken from the National Insurance Fund and covers statutory redundancy, statutory notice, untaken accrued holiday (up to six weeks). Any payments are capped at £475 per week. It's a straightforward process.

    If your wife doesn't hear from the insolvency practitioner within say a couple of weeks then get her to contact Companies House - they will be able to confirm who it is (it may well be the Official Receiver).
    Thanks Bob - that seems fairly straightforward, though we haven't heard from the insolvency practice yet. The website shows a wait of between 3-8 weeks to get the money fro the Redundancy scheme.

    Is there also compensation for lack of consultation? She just turned up last week to be told they'd gone into administration.

    She's already had one interview yesterday, which is looking good.


  • Don't share the redundancy details with us, it will go against the compromise agreement

    Booooo.

    Go on tell us.

    It's tax free after all.

  • The payout is a fair lump to us,, the catch 22 is the job she has interview for is uncanny, same days, same times, same money, lesser responsibility, and most importantly a 3 min walk from our house
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