Redundancy Payments.

[Fittster]

Story in the Telegraph

"Renishaw, the precision engineering group, has announced plans to make more than a fifth of its workforce redundant just weeks after persuading staff to take a 20pc pay cut."

If a firm gets it staff to take a large pay-cut only to make them redundant shortly after they have accepted would the redundancy pay outs be 20% smaller?

[JRM]

Fittster said:

Story in the Telegraph

"Renishaw, the precision engineering group, has announced plans to make more than a fifth of its workforce redundant just weeks after persuading staff to take a 20pc pay cut."

If a firm gets it staff to take a large pay-cut only to make them redundant shortly after they have accepted would the redundancy pay outs be 20% smaller?

I expect so, they have signed new terms of contract. Nasty

[Tony*T3]

Our company has asked us to take cuts, whilst the threat of redundancy still looms. They say redundant staff will get pre-agreement level payouts should they get made redundant.

Not sure what timescales that lasts for though.

Edited by Tony*T3 on Thursday 12th March 11:37

[Lurking Lawyer]

It probably won't make too much difference in terms of statutory redundancy payments - it is capped at £330 per week for each year of service (upto 20 years) anyway.

It may make a difference if the employer is offering an additional redundancy payment over and above the statutory minimum based on salary. But if they're in that much financial trouble, that's probably not very likely....

[colinjm]

Tony*T3 said:

They say redundant staff will get pre-agreement level payouts should they get made redundant.

Not sure what timescales that lasts for though.

Edited by Tony*T3 on Thursday 12th March 11:37

100% sure we work for the same firm, and we've not heard anything about that down here.

[Terminator]

Lurking Lawyer said:

it is capped at £330 per week for each year of service (upto 20 years) anyway.

Wasn't the amount raised to £350 on February 1st?

[Stu247]

Terminator said:

Lurking Lawyer said:

it is capped at £330 per week for each year of service (upto 20 years) anyway.

Wasn't the amount raised to £350 on February 1st?

Yip...was indeed

[Davel]

I'm no legal guy but surely, if this went to a tribunal, wouldn't this be seen as a device to avoid making redundancy payments or at least trying to bully staff in to taking a lesser settlement figure.

I can't believe an employer would get away with it.

[Firefoot]

Unless they earn under £350 per week then this will not affect their redundancy payment. What it will however affect, is their notice pay. You have to be given your contractual or statutory notice period. This will be paid at the new lower rate.

[SJobson]

Firefoot said:

Unless they earn under £350 per week then this will not affect their redundancy payment. What it will however affect, is their notice pay. You have to be given your contractual or statutory notice period. This will be paid at the new lower rate.

Ah, so if you are asked by your employer to take a pay cut, and are willing to do so, make sure you ask for a longer notice period as part of the deal.