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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49851
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Is it possible/legal company to rescind a redundancy

Customer Question

Is it possible/legal for a company to rescind a redundancy payment? A company has transferred me to another company within the group (within the UK) for a trial period and I was led to believe that my redundancy offer would still be in force until I signed an acceptable contract with the new company. I have been informed today that I my not be able to have my redundancy as the trial period has passed (by approximately 12 days) but I have yet to sign a new contract. I have been made an offer but it was rejected and now I wish to take my redundancy. All comments greatly welcomed.
Submitted: 2 years ago.
Category: Employment Law
Expert:  Ben Jones replied 2 years ago.
Hello, my name is ***** ***** it is my pleasure to assist you with your question today. Why are you rejecting the offer, is it not suitable?
Customer: replied 2 years ago.

The offer was not as it should be and although I have pointed out the errors, no revised offer has been made. With that in mind, I feel it best that I take the redundancy. At no time have I been formally informed (Written to) to advise that time is close i.e. 'now or never' as I was under the impression that my redundancy pay out would be protected until I signed a new contract.

Expert:  Ben Jones replied 2 years ago.
If there is a redundancy situation, an employer has a duty to offer those employees at risk any suitable alternative employment (“SAE”) that may exist at the time. The objective is to keep the employee in a job rather than make them redundant. Therefore, if an employee accepts an offer of SAE, their employment will continue in the new position and they would lose their entitlement to a redundancy payment.
If the offer is considered unsuitable and the employee refuses it, they will be made redundant and still receive redundancy pay. However, if the offer was suitable and the employee unreasonably refuses it, they would effectively be resigning and will lose their entitlement to redundancy pay.
As the statutory trial period is fixed at 4 weeks, it is not necessary for the employer to remind you that it is due to expire. It is generally your responsibility to either accept or reject the job you are trialling. It is however possible to argue that even after the initial 4 week period has ended and no decision has been made by you, you have continued to work in a ‘common law’ trial period beyond the statutory duration. This is not easy to determine and as it is based on common law it is effectively entirely down to the tribunals to decide if it applied or if you had gone too far beyond it to have actually accepted the alternative offer and given up your right to redundancy.
The only way to challenge this if the employer refused to make you redundant is to then resign and claim constructive dismissal and redundancy payment in the employment tribunal.
I hope this has answered your query. Please take a second to leave a positive rating, or if you need me to clarify anything before you go - please get back to me and I will assist further as best as I can. Thank you
Expert:  Ben Jones replied 2 years ago.
Could you please let me know if this has answered your original question or if you need me to clarify anything else in relation to this? It is important for us to know either way so we can track customer satisfaction or identify whether I need to help you further? Thanks