Company Closing

LegacyUser

I don't want to give to much personal info at this stage...

My employer is winding down the business over the next 12 months. There will be several rounds of redundancies over the 12 months until everybody has been laid off. My job is different to everybody else and I am the only one doing this job and I have learned that he wants to lay me off first then immediately re-employ me on a contract basis, until final closure, at half my existing salary.

Wondering, first of all, if it's ok for him to do this?

Batgurl

It's fine for him to do this but you'll still be entitled to redundancy based on your years service prior to him laying you off. Don't sign anything which leaves it open to interpretation that you are quitting.

The real question is why on earth would you accept half pay? (Assuming it's the same hours and you can get work elsewhere?

OU812

I was under the impression that it was the position that was made redundant, not the employee.

So basically to re-hire you, he has to change the job title and duties (this could mean your new contract States everything you used to do plus make him a cup of tea in the mornings.

You need to check it out.

seamusk84

Generally speaking when you get re-employed on a contract for a company winding down you get paid more money.

You said yourself you are the only one who can do the job. No way would I accept those terms, sure what have you got to lose?

gandalf

As said above if you are being re-hired on contract you should be getting more money not less.

I'm assuming you have been with them for a while?

LegacyUser

Thanks for the replies. I've been with the company 14 years (plus three years at the beginning that were off the books).

I won't be accepting the offer. I assumed I must be missing something as I also was under the impression that it was the positon not the person that was made redundanct yet I assume the company would be well advised and obviously think they can do this. He must have something up his sleeve.

gandalf

If it was me personally I would take the redundancy and make a clean break of it. There is nothing worse than sitting in a company that's being wound down watching all your work colleagues leaving.

stevenmu

I'm not in any way a legal expert, but I would expect that:

1) Yes they can do this is you agree to it.

and

2) Depending on how it's done, it may leave you without any entitlement to a redundancy payment. If you effectively quit, you won't be entitled to redundancy, either from the company or statutory. When you are hired back as a contractor and then let go again later you definitely won't be entitled to any redundancy for that period.