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Redundancy Package Issue

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  • Redundancy Package Issue

    I am posting on behalf of a colleague on hope for some support for him.

    He has been an employee for a company for over 35 years and last year, 2018, he finally decided it was time to hang up and enjoy his well earned retirement.
    Over the years he was considering retiring but his management always laughed at the idea and when mentioned anything about retirement was answered with 'you are too important and we need you so we would rip any letter we received from you'.

    When he actually made a firm decision for retirement he was advised by his management that they would offer him a 12 months redundancy payout however if he could delay his retirement for a few months to help train up another individual, it would really help that department, as his role is unique and key to the department he works for.

    He happily agreed and had no reason to doubt his management and whilst there was no paper work given to him to confirm the agreement, he was told it was a 'gentleman's agreement'.
    In his 30 years, he had no reason to doubt the company as he was always well looked after - yes, he regrets this now!

    So fast forward to a few months later to this year and the company has had some financial changes with mass redundancies across the board and subsequently the offer that was made by his management has now changed by HR to a 6 months pay out from the initial 12.
    His management have been pushing to reinstate the 12 months, which is what HR and his management had previously agreed however HR came back with 6 months again.
    My colleague rejected this offer on the matter of principal and they eventually offered him a take it or leave it off of a 9 months package pay out.
    Again he rejected the offer based on principal, so they have now offered him again a 6 months package pay out and not budging.

    Whilst my colleague has no written evidence via HR or his management, he now has call recordings from his management that clearly state what he had been promised and the fact that his management had this all previously agreed with HR (the name of contact in HR is in the conversation) and went as far as saying the HR Contact has been trying as well but due to changes they cannot honour the initially agreed 12 months pay out.

    What options does my colleague have?
    He could have retired last year on the 12 months pay out and be enjoying his life now however instead by staying over to help the company, he is having sleepless nights of how the company has essentially trying to screw him over!

    Any help would be greatly really appreciated.

    Thank you
    Tags: None

  • #2
    Firstly, I am confused as to how they can offer a redundancy package when clearly his position was not being made redundant he was retiring. Was it more of an incentive/inducement to stay for a period of time to do the training?

    Is the company under financial pressure hence the redundancies? If so that may have determined the fact that they cannot offer your friend, the sums discussed last year.

    Since it is not a redundancy situation there is nothing your friend can fall back on legally in regard to a redundancy payment. In addition, there was nothing confirmed in writing as to the payments that would be due to your friend on his delayed retirement.

    How were the calls recorded? Did the other parties to the call know that it was being recorded?
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