Redundancy

Soldato
Joined
10 May 2012
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10,054
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Leeds
Why would companies do this though? Surely they'll try and get away with paying the bare minimum?

Well it was voluntary redundancy, so they sent out offers to everyone and a certain amount of people said they'd like to take it, then they picked who they were going to let go out of the people who volunteered. These people also had 6 months between their leave date and finding out they were leaving. It's pretty bad for morale at a company when they make a load of people redundant, even the people who don't get made redundant will start looking for new jobs as it looks like they're on a sinking ship.
 
Soldato
Joined
20 Oct 2010
Posts
4,168
When I was made redundant (it was 4 years ago now) I was paid a sweetener which included my notice period and left after a couple of weeks, I got £35k and when I went to the Job Centre I was given JSA immediately without any major paperwork issues, my claim adviser also said it didn't matter how much payoff I got as I'd got it based on contributions (I had been in the company 22 years).

It looks like your out the door regardless (some of our guys clung on until being wheeled out) so I would weigh up if it's better to jump with the extra payment, just be aware that if you have redundancy cover on your mortgage/loans that it will not pay out if you take voluntary redundancy so if you do have that and depending how much your payments are it may be better to stick around until forced out.

Either way you need to get everything in writing and also work with the union but don't let them do something you're not comfortable with (My union rep the day before I was due to leave said they were trying to get me re-instated because the criteria used to include people I didn't meet 100%, I told them not to fight it as I wanted to leave). as sometimes the union can get a bit bullish and not work in the best interests of the member.
 
Soldato
Joined
1 Apr 2014
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18,532
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Aberdeen
Am I entitled to any benefit to cover any unemployment time if I take this offer?

You need to check. But to do that you need the offer details in writing. The DSS has the Rapid Response Seervice to help you here [email protected] but you will get the best advice from them if you can give them the exact details of the offer.

And don't be afraid to ask for half a day off to consult a solicitor or the Citizens Advice Bureau.
 
Associate
Joined
4 Dec 2009
Posts
518
When I was made redundant (it was 4 years ago now) I was paid a sweetener which included my notice period and left after a couple of weeks, I got £35k and when I went to the Job Centre I was given JSA immediately without any major paperwork issues, my claim adviser also said it didn't matter how much payoff I got as I'd got it based on contributions (I had been in the company 22 years).
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Its all Universal Credit now. Its all means tested and it all requires loads of paperwork, back dated bank statements (so you cannot remove the cash) and loads ok ID checks. Depending on how long you claim for and also randomly they ask for all the above again - repeatedly. You will also have to go to the Job Centre whenever they say and attend job clubs /group sessions. Depending on your job/career the amount of actual help you will get to find a job will be minimal. For example offering someone with a Computer Science Degree a 2 day word processing course. Its soul destroying do everything in your power to avoid this. Its also likely to take the best part of 6 weeks to process your claim in the first place.
Your redundancy payout will not affect the basic JSA part of UC or your NI payments but everything else like your council tax (seperate application) and your rent/mortgage will be means tested.

Also I am almost certain you were entitled to have someone with you in the meeting you have allready had and they should have informed you of this.
 
Associate
Joined
2 Jul 2003
Posts
2,436
Why would companies do this though? Surely they'll try and get away with paying the bare minimum?

Probably depends upon the industry but if word got out they treat people poorly in redundancy then you're less likely to attract sought after staff for new roles.
Also, and not sure on this, but they might have set a precedent with decent pay offs for staff in the past which they just continue to honour for future redundancies.

I know my place were giving a month per year as opposed to a week from speaking to former colleagues.
 
Associate
Joined
13 Mar 2011
Posts
61
Location
Stoke
Its all Universal Credit now. Its all means tested and it all requires loads of paperwork, back dated bank statements (so you cannot remove the cash) and loads ok ID checks. Depending on how long you claim for and also randomly they ask for all the above again - repeatedly. You will also have to go to the Job Centre whenever they say and attend job clubs /group sessions. Depending on your job/career the amount of actual help you will get to find a job will be minimal. For example offering someone with a Computer Science Degree a 2 day word processing course. Its soul destroying do everything in your power to avoid this. Its also likely to take the best part of 6 weeks to process your claim in the first place.
Your redundancy payout will not affect the basic JSA part of UC or your NI payments but everything else like your council tax (seperate application) and your rent/mortgage will be means tested.

Also I am almost certain you were entitled to have someone with you in the meeting you have allready had and they should have informed you of this.

It’s not universal credit if you have qualifying NI contributions, it’s new style JSA. Universal Credit is an income related benefit, which is for when you don’t qualify for a contribution based benefit. When you claim contribution based benefit, savings are not taken into account, as you have qualified for it by your NI contribution.
 
Soldato
Joined
6 Mar 2007
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9,736
Location
Surrey
I've just had similar but requested everything in writing. Extra £900 on top of my standard redundancy, plus my notice period paid in lieu if I leave end of the month. Going to see a solicitor tomorrow.
 
Caporegime
Joined
12 Mar 2004
Posts
29,913
Location
England
Hi guys,

I got pulled into a meeting this morning and said my estates team are being restructured, but they were pretty vague in terms of when this might happen.

They put a redundancy package in front of me and said they are removing my role, and they will enhance the pay off with an extra 2.5k if i accept it this week. If i don't accept it this week, i will lose the extra pay and get made redundant anyway a few months down the line.

I left the meeting with no paper work, no minutes and no letters.

I have not been through this process before and to be honest feel a bit pressured / backed into a corner into taking this pay off.

I am speaking to my union in the morning, but wondered if anyone has had any experience with this, as I'm really worried?!

Months + stat notice + stat redundancy has to be more than £10k surely?
 
Soldato
Joined
25 Nov 2007
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5,581
Location
London
To put more context and figures to it, this is what they offered me.

I think statutory I get 5 weeks as I've been there 5 years, so about 2.5k

They offered 3k additional.

Then a bonus extra 2.5k if I accept this week, if I don't they will make me redundant a few months later anyway minus the 2.5k bonus.

In other words there trying to get me to go quick and quiet with a 2.5k incentive.

To feel comfortable I'd like 6months salary in my bank so there 4k short.

Also add they couldn't actually give me a timeline on the main redudency, so could be another 6 month's ?

I think its a good deal IMO, if my company offered the same i would take it immediately.

But then again i'd be back at the same job, different company within a week, and i'd have made essentially 8k bonus.

But i would never get that offer where i am, the company i work for will no doubt rack up massive debt, bleed everything dry, file for bankruptcy etc, the parent company will own most of the debt and will put that as losses to reduce tax.

5.5k in addition to the legal 2.5k.. I can call my HQ right now they will all start laughing hysterically.
 
Soldato
Joined
7 Nov 2005
Posts
4,955
Location
Widnes
To feel comfortable I'd like 6months salary in my bank so there 4k short.

Also add they couldn't actually give me a timeline on the main redudency, so could be another 6 month's ?

You don't really have a choice. If you are being made redundant then you want to maximize the amount you can yet. If you think you can genuinely get more, push for it. Maybe offer them an amount. However, you need to be aware that they don't have to and can give you statutory if you get too cheeky.
 
Associate
Joined
4 Jan 2004
Posts
1,322
Location
Finally, Swindon
However, you need to be aware that they don't have to and can give you statutory if you get too cheeky.

Unlike this lot then...

HONDA workers facing the chop will be handed six-and-a-half weeks' redundancy pay for every year they have worked at the car giant's Swindon plant under a new deal.
Staff yesterday welcomed the payout as a "very good deal".
And Paddy Brennan, Unite shop steward at the plant, said workers would also get a nine per cent pay rise over the next three years – in a deal he described as a win-win. Unite members would be balloted on the pay deal.
“They’ve really listened to what we’ve said,” he added of the Honda directors. “Everybody’s upset the factory’s closing. I’ve been there for 25 years. I’ve got a son in there.
 
Soldato
Joined
14 Nov 2002
Posts
7,628
Location
Under the Hill
The Honda example is the way it should be. My place is similar, 6 weeks per year and pilon, typically 3 months. Best of luck to the OP, it's a tough time but from what I have seen it works out fine for most people.
 
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