Redundancy notice and payment

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Posted 16th Jan
I wondering if any HR experts can help. If a company gives notice you are being made redundant and you go out and find another job, are you still entitled to redundancy payment?
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yea of course, they cant expect you to just not have something lined up, its their decision and would have factored in the redundancy when they decided that course of action.
Yes unless the new job is also with company who made you redundant from your current role. You must also stay in your current job until the redundancy notice period is over to give your current employer chance to offer you an alternative role. If you refuse the alternative role, you will not be entitled to redundancy pay
I'm not an expert but it will depend on if you are still working and on gardening leave (employed and paid like a normal employee of the company) in which case it would be classed as a second job. Or if you are having your notice period paid as PILON (payment in lieu of notice) in which case, once you are paid off you are unemployed and can do as you wish.

Some companies, if you are definitely being made redundant, will not stop you from taking another job, others may possibly be awkward, especially if there is a handover to be done etc.

Prob better for an expert to answer this though, best of luck
When I was made redundant I found a new job, however I couldn’t leave until my redundancy date or I’d lose my payment, as they wanted us to work til the last day so instead of changing my dates I’d have to quit. So yes you can get a new job, but you’d need to discuss how your last date would work. You need to speak to your actual workplace who have the terms of your employment/redundancy, and the ability to change it. Remember they’re not going to be annoyed you have a new job so there doesn’t need to be a secret about it.
Edited by: "choccie32" 16th Jan
Jeeseymoose16/01/2020 17:32

Yes unless the new job is also with company who made you redundant from …Yes unless the new job is also with company who made you redundant from your current role. You must also stay in your current job until the redundancy notice period is over to give your current employer chance to offer you an alternative role. If you refuse the alternative role, you will not be entitled to redundancy pay


Thank you for all you replies, most helpful.

I was mainly after "must stay in current job until notice period is over." I've had redundancy looming over my head for the last 5 years and its beginning to tick me off not knowing whether i'm coming or going.

Is notice period negotiable during redundancy whilst retaining the pay off/out?
Edited by: "samosa" 16th Jan
Normally, you'd have to work until the last day but, some companies may be sympathetic, it really all depends on who you work for. What they can't stop you doing is going for interviews to find a new job while you're still working in your old one.
samosa16/01/2020 17:50

Thank you for all you replies, most helpful.I was mainly after "must stay …Thank you for all you replies, most helpful.I was mainly after "must stay in current job until notice period is over." I've had redundancy looming over my head for the last 5 years and its beginning to tick me off not knowing whether i'm coming or going.Is notice period negotiable during redundancy whilst retaining the pay off/out?


Have they give you notice that you're going to be made redundant? if redundancy is just 'looming' I'd kick myself if I left and then they decided to dish out redundancies
maccy1i16/01/2020 17:56

Have they give you notice that you're going to be made redundant? if …Have they give you notice that you're going to be made redundant? if redundancy is just 'looming' I'd kick myself if I left and then they decided to dish out redundancies


That’s exactly why I haven’t, just been invited to an all employee and we can read these invites like a book.
Someone did that on the last round, they came in and submitted their resignation. At midday company announce redundancy for the whole department.
Edited by: "samosa" 16th Jan
i have been made redundant twice.

the first time i was called into my manager's office, handed my redundancy letter with a very generous settlement sum and then immediately marched out of the office! there was no terms attached to the payment, except that i had to come back in a week's time to sign the payment agreement. it was a bit of a shock, both being kicked out and how much they were going to pay me not to kick up a fuss.

the second time, i was given 2 months consultation period notice that they would terminate my employment but that they would pay me in addition to the 2 months' consultation period notice, my 3 months of notice without me having to work the notice period. in addition they gave me another payout for making me redundant as a sweetener. the only condition was for me to see a solicitor and sign the payout agreement and i could take days off during the 2 months consultation period to go to interviews and see my solicitor about the redundancy, and that would not be considered annual leave.

i could not take new employment until the end of the 2 months consultation period as they needed me to work for those 2 months.

so as already said, it can be very different depending on what your employer offers you and how much they want you not to make a fuss, and how long they still need you to work.
Take a lot of sickies and be a slacker they will offer you redundancy come in on time every time, work hard you won't get squat, at least it's like this in my company.
samosa16/01/2020 18:02

That’s exactly why I haven’t, just been invited to an all employee and we c …That’s exactly why I haven’t, just been invited to an all employee and we can read these invites like a book.Someone did that on the last round, they came in and submitted their resignation. At midday company announce redundancy for the whole department.


Sorry, I'm not sure what you mean, do you mean they've offered redundancies to employees? I wouldn't submit my resignation until the redundancy was in writing and you knew exactly where you stood.

I know all companies are different, that's why it's hard to say what to do, but resigning doesn't sound right when they're making you redundant.
I don’t intend on resigning as it will be a substantial amount. I wanted to know if I find employment elsewhere after redundancy notice is given would I forfeit the pay out. Apologies it sounded confusing.
samosa16/01/2020 18:20

I don’t intend on resigning as it will be a substantial amount. I wanted t …I don’t intend on resigning as it will be a substantial amount. I wanted to know if I find employment elsewhere after redundancy notice is given would I forfeit the pay out. Apologies it sounded confusing.


you would forfeit the payout unless you get agreement from your employer that you can leave before the redundancy/termination date.
mutley116/01/2020 18:27

you would forfeit the payout unless you get agreement from your employer …you would forfeit the payout unless you get agreement from your employer that you can leave before the redundancy/termination date.


Thanks hoping the latter is possible but not the end of the world if it isn’t. Thanks for your help. Much appreciated.
samosa16/01/2020 18:27

Thanks hoping the latter is possible but not the end of the world if it …Thanks hoping the latter is possible but not the end of the world if it isn’t. Thanks for your help. Much appreciated.


when they make you redundant and offer redundancy pay, they will spell out in detail what you need to do to qualify for that payment. the payment will often come with certain conditions, one of which is about when you can actually leave.

as i had stated from my experience. the first time i got made redundant, i could leave immediately the same day and take new employment. the second time, i could only leave after 2 months.
samosa16/01/2020 17:50

Thank you for all you replies, most helpful.I was mainly after "must stay …Thank you for all you replies, most helpful.I was mainly after "must stay in current job until notice period is over." I've had redundancy looming over my head for the last 5 years and its beginning to tick me off not knowing whether i'm coming or going.Is notice period negotiable during redundancy whilst retaining the pay off/out?



mutley1 gave you a good link that should answer most of your questions - you can navigate around that page for further answers - or just contact citizens advice if you need further help and guidance
just in case citizensadvice.org.uk/wor…od/
Do not hand in any resignation or discuss it. Make sure after any notification you have everything in writing.
Depending on the number of people involved, there could be a consultation process. It may even involve some staff as reps to ask questions. If so make sure you raise the question of voluntary redundancy as an option.
Sounds like quite a toxic atmosphere.
Oneday7716/01/2020 18:56

Do not hand in any resignation or discuss it. Make sure after any …Do not hand in any resignation or discuss it. Make sure after any notification you have everything in writing. Depending on the number of people involved, there could be a consultation process. It may even involve some staff as reps to ask questions. If so make sure you raise the question of voluntary redundancy as an option. Sounds like quite a toxic atmosphere.


Yes very toxic.
I belong to a union so will have plenty of advice and backing from them.

We’ve only remained due to length of service and how much we will get unless it goes bust which is unlikely as it is global technology firm.
samosa16/01/2020 19:01

Yes very toxic. I belong to a union so will have plenty of advice and …Yes very toxic. I belong to a union so will have plenty of advice and backing from them.We’ve only remained due to length of service and how much we will get unless it goes bust which is unlikely as it is global technology firm.


Don’t quote me on it but if this doesn’t become a redundancy. It could be worth investigating destructive dismissal. If they constantly threaten you and know there are big payouts. They could be hoping for head count natural reduction.
How long have you worked there?

Have they said how redundancy would be calculated?

How easy or difficult would it be for you to find employment?

Have they consulted you about redundancy?

Is there any other employment you can do within the company as an alternative to redundancy? Remember the general 'last in, first out' rule. As a rule this means if there is someone a job thay you can do equally well, or better, and they have less employment time than you, the company 'should' offer you the opportunity to take that job and make them redundant (you've got to be a heartless beggar to do this or hate the person whose job you take). Most companies don't do this, but very few people prosecute at the tribunal. I did when I wad summarily made redundant. I was awarded 20 weeks pay for lack of consultation, and the firm's not considering re-employment within the company.

If they don't consult you prior to declaring you redundant you have an ironclad cast against them if you sue them in the tribunal.
Many things to consider, check how much redundancy you may get (minimum) and weigh the benefits against the benefits of getting a job before redundancy. Here
Do not leave until your last day.

You can find employment yes, but cannot have a start date while still employed by your current company.

Some companies allow employers to go on what is called, Gardening Leave. Basically, they are done but are still tied to the company but the bosses do not want them in the building being a distraction.

Just wait it out, look for work by all means, you are allowed to go to job interviews in your current employers time also. So make a few up and have some early days.

Good luck! Happened to me twice, always worked out for the best in the end
Just an update, it wasn’t redundancy but a steer of direction company is going but reading between the lines there will be redundancies but not this year.


They have in the past made two people with about 30 year experience between them, redundant and replaced by someone who doesn’t know their left from their right.

I could find a job pretty easily elsewhere as built up a network with others in the industry and pretty well known. All suppliers/partners/customer insist on my participation in any projects.

I’ve been there for approx 15 years and been headhunted for a competitor so was hoping this was to give notice so that I could coincide my start date with my end of employment date but I should be so lucky!
Edited by: "samosa" 17th Jan
Ok it can work like this.

You are given 90 days and a settlement figure (1 week pay for a years employment under 41 years of age. 1.5 weeks pay over 41)
During your notice period you can be given time off for interviews etc usually with out pay.

However in some circumstances you can receive your redundancy package and also be paid out for you 90 day notice period.

It could be different in some circumstances and terms of contracts
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