Redundancy

[hymas]

Hi,

I am being made redundant in November, I have been working for the same company for 5 years. They have offered me a new 6 month contract role to take me to March and say I will not get any redundancy payments. I am not happy with this as in March I will be out of a job but this time with no redundancy.

It is my understanding that if an employer offers alternative employment it should be of similar conditions, pay etc.. am I right in saying being offered a contract job instead of permanent that this is not a similar role and so I should be entitled to some form of redundancy?
Surely a company cannot do this, isnt this a way for them to get out of paying redundancy? What can I do?

[Spartacus]

Sounds like you're right to me.

For a definitive answer, call ACAS right now on 08457 47 47 47. Their guys really know their stuff and will tell you the score in just a few minutes.

[privateeye]

Sounds like you're right to me.

For a definitive answer, call ACAS right now on 08457 47 47 47. Their guys really know their stuff and will tell you the score in just a few minutes.

Second that - I think your employer is hoping you fall for their trickery.

[ASB]

Hi,

I am being made redundant in November, I have been working for the same company for 5 years. They have offered me a new 6 month contract role to take me to March and say I will not get any redundancy payments. I am not happy with this as in March I will be out of a job but this time with no redundancy.

It is my understanding that if an employer offers alternative employment it should be of similar conditions, pay etc.. am I right in saying being offered a contract job instead of permanent that this is not a similar role and so I should be entitled to some form of redundancy?
Surely a company cannot do this, isnt this a way for them to get out of paying redundancy? What can I do?

You don't really say what sort of contract role it is. If they are offering a fixed term employment contract then the *might* be able to get round the redundancy - but you would then have a longer continuous period of employment come March.

If they are offering a contract to a third party (e.g. a company you incorporate) then you will cease to be their employee and if you are made redundant (i.e. you don't resign) then the redundancy will still apply.

Don't get too excited about the redundancy payment though. All they are obligated to offer you is statutory redundancy. http://www.dti.gov.uk/employment/emp...page15686.html

This is likely to be 5 weeks for you, capped at £290 pw.

[VectraMan]

Sounds like they're saying the contract is dependent on you resigning and so forefitting any redundancy. They're on pretty shaky ground there I think, but as ASB says the redundancy doesn't have to be that much and if they give you a decent contract rate you have to consider you might be better off in the long run trying to form a long term business relationship for your services rather than arguing about your worker's rights.

[The Lone Gunman]

Be very aware that this kind of step into contracting will be regarded as IR35 bang to rights. Make sure you set your rate accordingly.

[ASB]

Be very aware that this kind of step into contracting will be regarded as IR35 bang to rights. Make sure you set your rate accordingly.

Not necessarily. It will still depend upon the contractual arrangments and working conditions. But yes, it is most likely to be caught.

[The Lone Gunman]

Under regulations in place before IR35 and subsequent changes within IR35 the IR have said that it will regard Friday to Monday converts as being in continuous employment unless exceptional circumstances can be shown.
The contract terms will be ignored completely if you are doing the same job at the same desk for the same boss at the same firm.

[Mailman]

Don't get too excited about the redundancy payment though. All they are obligated to offer you is statutory redundancy. http://www.dti.gov.uk/employment/emp...page15686.html

This is likely to be 5 weeks for you, capped at £290 pw.

Thats the minimum though isnt it and if his contract allows for x weeks per year then thats what he should get (the 5 months according to his posting).

There is something else you might be able to get them on if they force you in to this, constructuve dismissal. Throw in sexual harrassment and while you are at it why not add a bit of racial discrimination and you could be a very, very rich man indeed!

Mailman