Redundancy Questions

wandererz

I have a few questions regarding redundancy that I'm hoping can be answered:

1) Does the redundancy date only kick off after any gardening leave or after notice period?

2) Do you get paid the redundancy immediately or after the notice period?

3) What happens if you find a role with a start during the gardening / notice period? - is one allowed to start a new job or just wait it out?

4) what happens with unvested RSU's that may be vesting within a month or a few months after redundancy? Are they all lost? Or should one try to negotiate on this considering that the time and effort was put in and the redundancy was not the problem of the employee?

skallywag

I guess by redundancy date you mean the date which determines how long you will have worked with the company, i.e. the timespan that would be used to calculate what you are entitled to? That date should be your last day on the pay roll, including notice period. E.g. say I am informed today that I am to be made redundant at the end of this month, and I have, say, a 3 month notice period in my contract. The the date used for the calculation would be end of March 2024. Even if my company send me on gardening leave immediately then that date should still be and of March 2024.

If you have to work out your notice period, then you will get the payment after. If you do not have to work out your notice period, (e.g. in the case of my example above, and they ask me to leave immediately and not work the notice period) then you can indeed be paid the full sum immediately. If you are going to be put on gardening leave in any case then it will often suit the employer to just pay you off immediately and let you leave there and then.

If you are asked to work out your notice period then you should not start a new job in that time, but there will be very little standing in your way, albeit that you wont get any decent reference, if this matters to you.

I do not think that you have any entitlement to RSUs which will only be vested on a date which is later than your last day of employment (including the notice period).

All in all, what can very often happen is that your employer will allow you to leave pretty much immediately, and at the same time immediately pay out the redundancy and your notice period, leaving you free to start a new role right away. Assuming of course that the employer does not need you to work out the notice period.

Flex2016

in my case:

1. redundancy date the last day of garden leave
2. Redundancy payment at the end of garden leave
3. Can start a job but you’ll likely pay more tax while still employed by the company you are leaving
4. RSUs that unvested lost, missed vesting by a few days

its a sh*tty situation, hope it works out for you.