Zero Notice Period

[Soulman]

Hi all.

The company that I am working for is going into liquidation fairly soon (at an appropriate time to be decide by the main secured lender !). All remaining employees have known this fact for a little while and have been looked after as best as possible in the circumstances. One of the ways this has been done is to "pay out" our notice periods (so that we potentially do not get screwed by a liquidator) and then reduce our notice period to zero months, which is where it currently stands. Now I think under law you cannot have a zero notice period. Is this correct ? If so, am I within my rights to push for statutory notice (it will be 8 weeks as I have been there 8 years) ? I know it is being a tad greedy, but I am unlikely to walk into another job soon, so every little will help.

Appreciate any guidance.

[bluebottle]

Re: Zero Notice Period

I will bump this thread for one of our Employment Law experts to look in.

:bump:

[miliitant]

Re: Zero Notice Period

are they offering a compromise agreement as this is in contravention of the employment rights act. if they are offering cash payment before the receiver becomes involved then it can get messy as the receiver will want to know why the company has disposed of assets prior to liquidation.

in my opinion, money is in the bank is better than waiting for the receiver as that does not pay the bills. but please work out what they are offering above what i have posted below before you decide to accept the compromise agreement. if you do accept,

GET IT IN WRITING

if the company went tits up, you will still receive the statutory redundancy from the goverment

if memory serves me right it is £430 max for every year you have been employed now

it is known as the 'Insolvency Provisions' of the Employment Rights Act 1996.
Under Section 184 of the Act the Department of Employment Redundancy Payments Section will pay the workers (NI FUND)

please contact the DWP to confirm as i work for an an employer where the trade union will allways negotiate the best deal for its members outside the employment rights act

the goverment name for the scheme is the General Employee Entitlements and Redundancy Scheme

1. arrears of pay up to a maximum of 8 weeks, which may include guarantee payments, pay for time off work to carry out trade union activities and protective award payments under the Trade Union and Labour Relations (Consolidation) Act 1992,
2. notice payment in compensation for the employer's failure to give correct period of statutory notice,
3. holiday pay up to a maximum of 6 weeks during the last 12 months preceding the relevant date,
4. any basic award of compensation for unfair dismissal,
5. reimbursement of a fee or premium paid by an apprentice or articled clerk, and
6. occupational/personal pension scheme contributions -additional voluntary contributions may be included.

[Soulman]

Re: Zero Notice Period

Thanks Miliitant.
The notice period was paid out a few months ago and there is a written variation to my contract, saying that the company has compensated me for reducing my notice period to zero months notice. I suppose the key question is whether I am entitled to the government payout when the company eventually does go tits up ? I am under no illusions that there will be anything further from the liquidator. There is also a chance that I will be calling on the scheme anyway, for unpaid holiday pay.