redundandcy entitlement?

Question

ive been told by my current employer that im bein made redundant nx fri,ive been employed by them for 15 yrs,they told me i wont get redundancy pay as the company has no money, but i was told by them that the government pay you if the company cant, also my employers are settin up under a different name and then want to employ me back on a new contract, am i allowed to do this or will it affect my redundancy claim? PLEASE HELP if you need more info,ill try my best

the current owner is signin the business over to his son

andy g the company is sayin they have no money because they have over 25 staff 10 of whom have been there longer than ten years it would take a lot of money to pay their redundancys, basically there gettin rid of all staff and then going to set only half back on under this new company, i was after positive feedback not some smart answer

Answer 1

Hello top mom,

In normal circumstance I believe if the company you work for is insolvent and cannot afford redundancy payments the payment can be made by the Government.

If the company has the money to pay the redundancy they are normally required to do so.

If in you case the company are going to cease trading and going to change their name and restart trading, either they offer you a contract giving you continuous employment. In other words any redundancy payment due under the old firm will be carried forward to the new. Therefore you would have continuity of employment in regard to redundancy.

However if they wish to start you on a new Contract of Employment, therefore re-employing you on a brand new contract as a new employee, they should be responsible for paying you redundancy for your last 15 years, or if they have no money, ask the Government to pay.

What I can't understand is that if the company has no money to pay you a redundancy payment, where is the money coming from to restart the company in another name.

My advice is to seek help and advice from the following bodies:

The Advisory, Conciliation and Arbitration Service (ACAS)

Website: http://www.acas.org.uk/index.aspx?articleid=454

Phone: [phone]

Address: Brandon House
180 Borough High Street
London
SE1

Phone: [phone]

Email: No emails accepted

This is a completely independent and free service set up by the Government to advise you about your rights & entitlements.

Your local Jobcentre or Department for Work and Pensions (DWP)

The Citizens Advice Bureau (CAB). The CAB is a free highly confidential service and are well versed in dealing with this kind of problem. They can advise you and possibly help you also.

May I also advise you to get this help and advice as soon as you can as I believe there are time limits with regard to claiming.

The very best of luck.

John
(Poseidon)

After reading your additional comments I feel that this company is simply trying to get out of paying you and others their due payments in order to get their company back on track, albeit under a new name.


If they are starting those normally entitled to a redundancy payment on as new employees and on a new contract in the new company, this does not negate their responsiblilities for redundancy payments under the old company, unless they are prepared to offer you continuity of employment. This means that if they do offer you continuous employment and they close down again in a couple of years, you would be entitled to 17 years redundancy payment. 15 under the old company and 2 under the new.

John

Answer 2

A new company name, means a fresh start financially and that is the reason for the closing in the first place. Just accept what they are proposing as you will get some redundancy and a job.

Depending on your age during your 15 years service will determine the money you will get.

You will need a claim form "RP1".

Fill it in as soon as possible after your employment has ended and send it to the Redundancy Payments Office address on it.


Yes here is how to work out your entitlement............

You will get half a weeks pay for every year you served under age 22.

And then it increases with age.
http://www.dti.gov.uk/employment/employment-legislation/employment-guidance/page15686.html

Answer 3

Try this website to get the answer to all your questions. If you still haven't got the answers you seek, go to someone independent like the Citizen's Advice Bureau - they'll be in the phone book.
http://direct.gov.uk/en/AdvancedSearch/Searchresults/index.htm?fullText=redundancy+pay

Answer 4

if they have no money how can they set up another business as this takes money

and by the way you've taken short cuts in the spelling of this question I'm not surprised that they are telling you this information and you're excepting it

Answer 5

you.are.entiled.to.redundandcy.money.by.law..check.it.out.at.cittenzen.advice