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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
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I am to be made redundant from the NHS on 31 July. I have been

Resolved Question:

I am to be made redundant from the NHS on 31 July. I have been withth eNHS for 15 years on a permanent contract. We are normally paid on the 29th of each month. I am being told I won't receive my redundancy payment until 29th August.

The Management of Change Policy says:

Redundancy Payment

Redundancy payments may be made if no suitable alternative employment can be indentified within the Company [ie NHS Property Services] or the wider NHS. A payment will be due if the employee has not secured suitable alternative employment before their contract is terminated.

Reimbursement of Redundancy Payments:
In exceptional circumstances the Company may be entitled to reimbursement of redundancy payment if:
- The employee is re-employed by the Company or wider NHS within four weeks of the termination date.

1) Please could you confirm when I should receive my redundancy payment.
2) If I obtain re-employment in the NHS within 4 weeks of termination I understand I will have to reimburse the redundancy payment if already received. But for example if I am made redundanct on 31 July but do not obtain employment within the NHS until 25 August am I entitled to retain a portion of my redundancy payment to cover the period between the termination date and the date of re-employment by the NHS?
3)Keeping with the above example if my redundancy payment has not been received am I entitled to receive some payment to cover the period between 31 July and 25 August, when I would start to earn a salary again?
4) Would a secondment (rather than permanent employment )to another NHS organisation be considered suitable alternative employment? Or should it have to be a permanent contract?
Submitted: 3 years ago.
Category: Employment Law
Expert:  Ben Jones replied 3 years ago.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. Does your contract actually terminate on 31 July?

Customer:

Yes - the date has been confirmed in a letter by my employer.

Ben Jones :

If you were paid on the 29th of the month, would that cover the previous month (e.g. pay for Jan, received on 29 Feb)?

Customer:

The pay for January would be paid on 29 January

Ben Jones :

ok let me get my response ready please

Ben Jones :

1) Please could you confirm when I should receive my redundancy payment.


 


If your contract states that you are to be paid on a certain date, the employer would be obliged to do so. Therefore, if you are paid for the current month on the 29th of that month, you should be paid in exactly the same way this month and receive any other termination payments, including redundancy, at the same time.


 


2) If I obtain re-employment in the NHS within 4 weeks of termination I understand I will have to reimburse the redundancy payment if already received. But for example if I am made redundanct on 31 July but do not obtain employment within the NHS until 25 August am I entitled to retain a portion of my redundancy payment to cover the period between the termination date and the date of re-employment by the NHS?


 


No, you must repay the full redundancy payment, there is no pro-rata entitlement to this.


 


3)Keeping with the above example if my redundancy payment has not been received am I entitled to receive some payment to cover the period between 31 July and 25 August, when I would start to earn a salary again?


 


As above – I you are re-employed by the NHS within this 4 week period you must repay the redundancy payment in full, regardless of whether you have been out of work for some or all of this period. Only if you are employed after that 4 week period can you keep your redundancy.


 


4) Would a secondment (rather than permanent employment )to another NHS organisation be considered suitable alternative employment? Or should it have to be a permanent contract?


 


A secondment could potentially be suitable but it would always depend on the individual circumstances and terms under which it is offered. For example a short secondment will probably not be suitable but one for a prolonged or indefinite period could be…it will depends though and it will vary from case to case.


 

Customer:

Thank you. Just for clarity

Customer:

- my redundnacy payment shoul dbe made to me on 29 July

Customer:

Thank you

Customer:

Just for clarity my redundnacy paymen tshoul dbe made to me on 29 July.

Customer:

Thank you for your help. Would a 6 month secondment be considered short term?

Ben Jones :

yes

Ben Jones :

to both

Customer:

Thank you for your help

Ben Jones :

you are most welcome

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