Redundancy help please. Nothing being done properly

[SieveNaive]

Hi, first post so apologies if in in the wrong place. As brief as I can make it the situation is -

 

Worked for the same company over 20 years. For months they have struggled and at various times boss has said "might be worth you start looking around for something else" which I have been, but really wanted to stay put if possible. 

 

At no point so far has there been a redundancy consultation or even a formal discussion, just the boss dropping this into conversation. 

 

Recently I've discovered he is going to sell up but not as a going concern, still no official steps taken. There are seven of us who would then be looking at redundancy but not one of us has had any kind of formal process.

I've started taking annual leave for interviews because I think until I've had something formal I can't take it as official interview leave. 

 

I've now been offered a job, but don't know what to do because I don't want to lose out on redundancy  having worked there decades but the boss is just not committing to anything. The company are clearly winding down so I don't know what to do. I spoke to boss about a month ago and said the is a proper process and the boss seemed surprised but said he would look into it. Still nothing. 

 

What can I do? We have asked and asked but surely this is not legal. I think it's just going to be one Friday evening "oh one week notice, thanks for everything"

[Ethel Street]

If the owner is trying to sell the business I wouldn't expect him to start any formal process on redundancy until he has agreed a sale. So I'm not sure he's under any obligation to to do anythging yet.  @Emmzzi may be able to comment further.

 

It sounds like a small company, just 7 employees (excluding the owner). Is that right?

 

Do you know why the owner is selling?  Is the business unprofitable and possibly going to become insolvent? Or is the owner selling a profitable business so that he can retire?

[Emmzzi]

I agree with Ethel. Whether he has to consult at all also depends on the size of the business. You are essentially taking a gamble that another job will be available if/when you do get laid off, which is your choice.

 

See here to work out how much you might be gambling.

/assets/static/govuk-opengraph-image-dade2dad5775023b0568381c4c074b86318194edb36d3d68df721eea7deeac4b.png

Calculate your statutory redundancy pay - GOV.UK

WWW.GOV.UK

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Calculate how much statutory redundancy you can get based on age, weekly pay and number of years in the job

 

 

And here for info on consultation. Under 20 redundancies, he does not have to consult.

 

/assets/static/govuk-opengraph-image-dade2dad5775023b0568381c4c074b86318194edb36d3d68df721eea7deeac4b.png

Redundancy: your rights: Consultation - GOV.UK

WWW.GOV.UK

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Being made redundant - rights, statutory payments you're entitled to, notice periods and consultation, finding a job.

 

[SieveNaive]

Hi thank you both. He is selling to a developer and has already exchanged contracts so it is definitely happening.  I want to stay but there is no option for this, so I would only be taking the other job because I have no choice as the redundancy will happen, he just isn't doing anything about it. 

[Emmzzi]

if you resign, you get no payout. So this is the gamble you take. Do your costings and see what you think.

[SieveNaive]

So even though he's telling me to look for other work because we are closing down, but hasn't given me notice officially I have no right to the redundancy money? 

It's not going to be easy for me to find a job in my field so the fact this job has come up now, I lose out. This seems so wrong.

[Emmzzi]

The payout is designed to tide you over until you find new work, not as a leaving bonus. Viewed that way, it’s operating correctly.

 

It sounds like you are hinting to your boss. Why not have a frank conversation about his obligations?