Redundancy - compensation
Discussion
Evening.
I would very much appreciate if anybody could shed a little light on the entitlement of compensation during a redundancy process.
Background:
Six years service
Six months ago TUPE to 'redundancy' company
Some aspects of the role changed that required the purchase of the following for company usage:
1) CAR
A personal car tailored to the company specification (diesel, estate etc) ~20,000 business miles per year.
2) BROADBAND
A broadband connection to allow internet access at home to company servers/email etc
For both of these items I have received a payment each month.
Seeing as my role will be redundant only six months after purchasing these items, would I be entitled to compensation?
Such as;
1) CAR - the company payments received thus far are less than the cost of running the vehicle, depreciation & the costs associated with selling the vehicle. This would unlikely have been the situation after 12 months of payments/company usage.
2) BROADBAND - the company payments received thus far are less than the cost of the monthly payment & the charge for terminating the contract early. This would not have been the situation after 12 months of payments/company usage.
I have not reached the stage in the process to discuss this mater with the company, although I would anticipate their position to be 'do one', regardless of the legal standpoint...
Many thanks for any advice.
I would very much appreciate if anybody could shed a little light on the entitlement of compensation during a redundancy process.
Background:
Six years service
Six months ago TUPE to 'redundancy' company
Some aspects of the role changed that required the purchase of the following for company usage:
1) CAR
A personal car tailored to the company specification (diesel, estate etc) ~20,000 business miles per year.
2) BROADBAND
A broadband connection to allow internet access at home to company servers/email etc
For both of these items I have received a payment each month.
Seeing as my role will be redundant only six months after purchasing these items, would I be entitled to compensation?
Such as;
1) CAR - the company payments received thus far are less than the cost of running the vehicle, depreciation & the costs associated with selling the vehicle. This would unlikely have been the situation after 12 months of payments/company usage.
2) BROADBAND - the company payments received thus far are less than the cost of the monthly payment & the charge for terminating the contract early. This would not have been the situation after 12 months of payments/company usage.
I have not reached the stage in the process to discuss this mater with the company, although I would anticipate their position to be 'do one', regardless of the legal standpoint...
Many thanks for any advice.
I presume that as you work from home that you have some company equipment (laptop,, printer, fax machine, mobile phone etc).
I'm sure you could make returning these subject to the appropriate compensation (I'm not sure whether legally you would have a lien on them - perhaps Breadvan, Tonker or one of our other legal friends could advise? But even so they must add up to a few quids worth)
Also under a TUPE transfer isn't there something like a minimum guaranteed period of employment (12 months?) and I thought they had to guarantee the SAME terms and conditions as the original employer - so if your old employer would have compensated you surely the new one must too???
I'm sure you could make returning these subject to the appropriate compensation (I'm not sure whether legally you would have a lien on them - perhaps Breadvan, Tonker or one of our other legal friends could advise? But even so they must add up to a few quids worth)
Also under a TUPE transfer isn't there something like a minimum guaranteed period of employment (12 months?) and I thought they had to guarantee the SAME terms and conditions as the original employer - so if your old employer would have compensated you surely the new one must too???
Edited by elanfan on Thursday 6th September 23:58
A statutory redundancy payment is calculated by a formula which takes a notional weekly wage (up to a statutory maximum) and multiplies it by complete years of service (service with the pre transfer employer included). There is also an age modifier.
Your question appears in fact to relate to contractual benefits, not relevant to redundancy calculation.
Also, some employment contracts provide for contractual redundancy pay over and above that required by Statute. Check your terms of employment. The new employer must apply the terms of the pre transfer employer.
NB: if the dismissal is for a reason connected with the transfer, then it will be automatically unfair unless the employer can show that the dismissal is for an economic, technical or organisational reason entailing a change in the workforce. A genuine redundancy would qualify, but a contrived one would not. There is, however, no 12 month minimum post transfer or anything of that kind.
Even if the employer establishes the ETO defence, the dismissal could still be unfair if the redundancy selection or procedure followed are unfair.
Compensation for unfair dismissal could include the items that you are concerned about.
Compensation for dismissal in breach of contract (wrongful dismissal) would only extend to the notice period.
Your question appears in fact to relate to contractual benefits, not relevant to redundancy calculation.
Also, some employment contracts provide for contractual redundancy pay over and above that required by Statute. Check your terms of employment. The new employer must apply the terms of the pre transfer employer.
NB: if the dismissal is for a reason connected with the transfer, then it will be automatically unfair unless the employer can show that the dismissal is for an economic, technical or organisational reason entailing a change in the workforce. A genuine redundancy would qualify, but a contrived one would not. There is, however, no 12 month minimum post transfer or anything of that kind.
Even if the employer establishes the ETO defence, the dismissal could still be unfair if the redundancy selection or procedure followed are unfair.
Compensation for unfair dismissal could include the items that you are concerned about.
Compensation for dismissal in breach of contract (wrongful dismissal) would only extend to the notice period.
Edited by anonymous-user on Friday 7th September 09:26
Firstly, many thanks for all replies and I must apologise for not returning to this thread sooner.
As commented, the redundancy is muddy due to the recent TUPE process and I am now in a position to understand what the redundancy package contains.
Once again many thanks for all replies.
As commented, the redundancy is muddy due to the recent TUPE process and I am now in a position to understand what the redundancy package contains.
Breadvan72 said:
NB: if the dismissal is for a reason connected with the transfer, then it will be automatically unfair unless the employer can show that the dismissal is for an economic, technical or organisational reason entailing a change in the workforce. A genuine redundancy would qualify, but a contrived one would not. There is, however, no 12 month minimum post transfer or anything of that kind.
Breadvan72 - many thanks for this information, it does appear that the company have not thrown straight dice and that I will be seeking legal advice. A new thread may be on the horizon for such discussion!Once again many thanks for all replies.
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