I have worked for a large US restaurant chain for nearly 11 years, now owned independently in the UK. I hold a position of Head of Restaurant Excellence and have had an exemplary career, excelling each year in my role. I have just been informed due to a re structure of the business I will be made redundant at the end of December as there are no suitable positions for my level in the restructure. I’m being offered a package of 26k made up of 10 weeks’ notice, statutory pay and enhanced terms but feel this is too low. My annual salary is 72k, 10k car allowance and pension and I have just completed a full financial year where my bonus is due at 12-15k pre-tax. I also have a 12 week notice period and only 10 weeks are being offered. Do I have any grounds for challenge? Any advice would be gratefully appreciated.
Hello, my name is ***** ***** it is my pleasure to assist you with your question today. Does your contract offer any enhanced redundancy entitlements?
Hello Ben, Unfortunately I only ever received a standard team member contract when I joined the business 11 years ago which doesn't offer any enhanced entitlements. At each stage of my career and development into new roles, no new contract has every been issued.
If you are being made redundant then by law you would only be entitled to the following payments:
Unless your contract entitles you to enhanced redundancy terms, then by law the above is all you can expect, even if you feel that it is too low. You would not be able to request more from the company because they would be paying you what they would be legally obliged to pay you.
If you have a bonus entitlement then some or all of that could also become payable, although it would depend on the terms of your contract. It could be that the bonus clause says you must be employed at a specific date for it to become payable so if you are being made redundant before that, you could miss out because you do not meet the specific payment terms. In other circumstances you could become eligible for part of it to reflect the part of the year during which you were employed by them and during which you met the performance criteria for that bonus. In any event, it is the bonus payment terms on your contract or any bonus agreement which would dictate what you get in terms of this payment.
Hope this clarifies your position? If you could please let me know that would be great, thank you
Hi Ben, thanks for the information, much aprechiated.
Hi Ben, thanks for the information, much appreciated. Kind Regards ***** *****
you are welcome, all the best