Redundancy advice

[andyjcam]

Hi LegalBeagles,

I am looking for some advice after being made redundant. I want to be sure I am being treated fairly and that I receive full and fair compensation for the separation. To me it seems the company's process is a little hasty and not well thought through. Hopefully you guys can help me

Here is some background:

About a month ago the company I have been working at for 1 year was acquired. The new owners came in an within a fortnight my role, along with 7 others, were put at risk of redundancy. I was given a 14 day consultation period, during which I was invited to a consultation meeting where other employment opportunities were explored and the terms of my separation were explored. No alternative roles were identified and at the end of the consultation period, I was served with written notice of termination my employment. They confirmed my contractual notice period of 3 months, at the end of which I would be made redundant. I am currently on gardening leave in the notice period but, as per their process, have the right to appeal the decision within 5 working days from yesterday.

There are 2 questions I want some advice on:

1. Is my dismissal fair?
2. Do my circumstances qualify for a tax free Pay in Lieu of Notice?

With respect to question 1, from what I've read, if my role and team function still exist post redundancy (which I think they do) my company should have entered into a selection process to fill those roles in the restructured organisation (which they did not do).

With respect to question 2, I was originally informed the companies preference was to terminate my contract at the end of consultation period and make a PILON payment to agree the separation. At this point, I discovered that PILON payments qualify as tax free if there is no provision for them in the employment contract (as in my case) and it is not the 'customary' for the company to make PILON payments (which as far as I am aware it isnt). I requested a tax free PILON payment at my consultation meeting but discovered yesterday that the company did not want to declare a breach in my employment contract and enable a tax free PILON payment. They are therefore intending to run my contract notice period down with me on gardening leave. It seems unfair that, having put me in this position, they can then choose an outcome that is preferable for them which is less preferable for me with regards to the PILON payment. The other issue for me is that, by running my contract down rather than terminating it following a PILON payment, I am at risk of an employment contract breach if I start alternative employment before my contract notice ends. Further, my employment contract is the subject of several onerous convenants that, for example, prevent me working for competitors for long periods of time after my employment ends.

Does anyone have any advice on my situation and these questions based on the above. I tried to stick to the salient points but I can provide more information if that is helpful.

Thanks for reading.

andyjcam

[judgemental24]

Re: Redundancy advice

Yes they can either pay you PILON in one hit or stick you on garening leave until the 12 weeks have been exhausted.

And yes you dismissal process is fair

Think your self lucky they could have just terminated your contract as you have less than 24 months continued service

Part of the redundancy procedure is that the employer has to allow you time to source other employment, that can even be at your present employers expense so no breach of contract

[des8]

Re: Redundancy advice

Hi LegalBeagles,

Further, my employment contract is the subject of several onerous convenants that, for example, prevent me working for competitors for long periods of time after my employment ends.

andyjcam

Lots of these clauses are basically unenforceable.
They need to be tailored to the individual position, and not just a blanket in all employees contracts.
They are often too long and too wide in application, ie too restrictive
It is expensive for the ex employer to enforce.

People here would need to see the exact wording and have more idea of your position and area of work to comment more fully.

[andyjcam]

Re: Redundancy advice

People here would need to see the exact wording and have more idea of your position and area of work to comment more fully.

Thanks - are you referring to the wording of the convenants to comment or my position in general?

I have heard these convenant items are generally unenforceable and unlikely to be pursued so not overly concerned about these.

[des8]

Re: Redundancy advice

I meant to suggest that a full copy of the wording of the covenants would be useful, together with an idea of your field of work and position in it.
However you seem to have realised already that these restrictions probably aren't worth the paper they are written on.
There are other threads on this site which have discussed this aspect in the pastEG;.legalbeagles.info/forums/showthread.php?70154-Restrictive-Covenants&highlight=restrictive+clauses+employment +contracts

[andyjcam]

Re: Redundancy advice

I meant to suggest that a full copy of the wording of the covenants would be useful, together with an idea of your field of work and position in it.
However you seem to have realised already that these restrictions probably aren't worth the paper they are written on.
There are other threads on this site which have discussed this aspect in the pastEG;.legalbeagles.info/forums/showthread.php?70154-Restrictive-Covenants&highlight=restrictive+clauses+employment +contracts

Thanks des8, Im more interested in understanding if I have a case for unfair dismissal or a route to recover my PILON tax free but I think judgemental24 has addressed this.