Made redunant before I even start....what are my options?

Aloreth · 2 Oct 2013 at 20:13

So I was happy in a role at company A - was inline for a promotion in the next six months.

I was head hunted for a role at company B - more interesting role and pay rise.

I hand in my notice at company A, sign a return contract for company B, last day / first day mid November for both.

Fast foward to today, have been told that the role at company B no longer exists. I will be paid 3 months months severance pay however this will be subject to tax and national insurance.

I am wondering whether I should be asking for more, I have given up a job where I was about to get a promotion (confirmed in writing). I am also confused around the payment from company B being subject to tax and NI, my understanding was that redundancy of less than £30k would be tax free. I am wondering whether this has been structured as something other than redundancy from their end. Do I formally qualify for redundancy if I havnt started?

Also, at the moment its unclear whether I will recieve 3 months pension contributions as well, I assume that I should be requesting this as well.

I will be contacting an employment lawyer however would welcome your input.

Many thanks,
Mike

Blinkz · 2 Oct 2013 at 20:17

Ask your present company to stay? They are perfectly entitled to let you! Then enjoy the severance and your promotion!

atpbx · 2 Oct 2013 at 20:18

I doubt you will get anything more from them, they have compensated you for the fact the job no longer exists.

In your shoes I would go back to my old employer and see if you can get your old job back.

[TW]Fox · 2 Oct 2013 at 20:19

You are entitled to nothing at all so the 3 months pay is very very generous.

GTanny · 2 Oct 2013 at 20:21

wow sorry to hear it thats very harsh!

chances are you would have been in a probationary period and they could have got rid of you at any point in that time so im not sure how it works as you were offerd a job that esentially didnt exist so surely you have some sort of case.

if you didnt leave on bad terms i would be straight back to your old employer with your tail between your legs asking for your old job back... unless they have already replaced you.

good look and ill be interested to see what comes of this

Aloreth · 2 Oct 2013 at 20:21

Should have explained the situation in with Company A. The reason that I was due to be promoted was that my boss quit, I was doing his role on the lower salary grade on the understanding I would be bumped up. Now that I have quit, they have hired someone to fill my bosses role. Whilst I can go back to the old job, it would be pointless as I would be stuck in the role

covenantuk · 2 Oct 2013 at 20:22

They're firing you a month before you would be entitled to statutory redundancy, which in any case would be negligible with your time served.

Take the money and chalk it down to experience, try for your old job back, at least you'll have a job if you get it.

Aloreth · 2 Oct 2013 at 20:22

[TW]Fox;25045393 said:
You are entitled to nothing at all so the 3 months pay is very very generous.

How do you figure this? I have a signed contract. If you still still think I am entitled to nothing, can I ask if you are actually familiar in this field?

GTanny · 2 Oct 2013 at 20:22

Aloreth said:
Should have explained the situation in with Company A. The reason that I was due to be promoted was that my boss quit, I was doing his role on the lower salary grade on the understanding I would be bumped up. Now that I have quit, they have hired someone to fill my bosses role. Whilst I can go back to the old job, it would be pointless as I would be stuck in the role

better then unemployed trying to fight a tribunal that you may never win anything from... that 3 months pay wont last long while your unemployed

[FnG]magnolia · 2 Oct 2013 at 20:23

You're fortunate to get anything at all. Time to get a new job in the 3 month window available to you.

Aloreth · 2 Oct 2013 at 20:23

covenantuk said:
They're firing you a month before you would be entitled to statutory redundancy, which in any case would be negligible with your time served.

Take the money and chalk it down to experience, try for your old job back, at least you'll have a job if you get it.

Oh so im actually entitled to nothing? If thats the case maybe I should be grateful for what they have offered.

paradigm · 2 Oct 2013 at 20:23

Aloreth said:
Should have explained the situation in with Company A. The reason that I was due to be promoted was that my boss quit, I was doing his role on the lower salary grade on the understanding I would be bumped up. Now that I have quit, they have hired someone to fill my bosses role. Whilst I can go back to the old job, it would be pointless as I would be stuck in the role

better to be stuck in that role, earning money, whilst hunting for another.

Kenai · 2 Oct 2013 at 20:24

Aloreth said:
Should have explained the situation in with Company A. The reason that I was due to be promoted was that my boss quit, I was doing his role on the lower salary grade on the understanding I would be bumped up. Now that I have quit, they have hired someone to fill my bosses role. Whilst I can go back to the old job, it would be pointless as I would be stuck in the role

Hardly pointless, as it'll mean you have a job at least, which is surely better than not having a job?

[FnG]magnolia · 2 Oct 2013 at 20:24

paradigm said:
better to be stuck in that role, earning money, whilst hunting for another.

Disagree as that is going to look awful on a CV.

Company A > Company B > Company A > Company C in a very short space of time.

Whilst it could be explained it looks desperate.

dowie · 2 Oct 2013 at 20:26

Take the money and run... you had a lucky escape by the sounds of it...

Kenai · 2 Oct 2013 at 20:26

[FnG]magnolia;25045436 said:
Disagree as that is going to look awful on a CV.

Company A > Company B > Company A > Company C in a very short space of time.

Whilst it could be explained it looks desperate.

He hasn't actually left Company A yet though, so his CV could quite happily read "Company A > Company C" surely? I don't see why Company B need ever be mentioned.

I assume he's currently in more of a 'Sorry guys, I won't be leaving, is it ok if I stay' position rather than having actually left and then come back later.

Aloreth · 2 Oct 2013 at 20:28

Thanks for the comments, I guess I will just accept the money.

Could anyone comment on the redundancy aspect? Tax at 40% carves a fairly large chunk out of the payment (just short of half by my maths

) so it would be nice if it could be classed as a redundancy payment

daver · 2 Oct 2013 at 20:31

Its not redundancy pay it is PILON which taxable in most situations, including this one. Statutory Redundancy pay is only due after you have worked somewhere two years and then only one weeks pay for every year worked. Of course there could be extra redundancy provisions in your contract but since you haven't mentioned any I assume their aren't. Presumably your notice period is 3 months, hence the 3 months pay in lieu

Destination · 2 Oct 2013 at 20:32

[FnG]magnolia;25045436 said:
Disagree as that is going to look awful on a CV.

Company A > Company B > Company A > Company C in a very short space of time.

Whilst it could be explained it looks desperate.

He hasn't worked for company B, he wasn't starting until next month, so there is no employment as such.
Currently he is at company A, and remains at company A until next month.
I'd suggest staying at A in your current role if possible, while searching other employment, and enjoy the 3 month bonus of which you are relatively lucky to get anything at all.

As for redundancy or not, I am unsure if severance pay accounts as redundancy given you have no actual period of employment.

#Chri5# · 2 Oct 2013 at 20:34

Assuming I'm understanding the OP right...

If the job offer was unconditional, Gov.uk suggests the employer can be sued for breach of contract

If an employer withdraws their job offer

Once someone has accepted an offer they can only take action in certain situations.

Situation : The employer has confirmed that the job offer was unconditional, or the applicant has met all conditions

Action : The applicant can sue the employer for ‘breach of contract’