Redundancy or not?

[chopster300]

Hi

I have been with my company for 12 years now, and last year in July they made an announcement that we would be moving from Kent up to Canary Wharf in October, and suggested that redundancies would be in place if we didn't move. Well October came and went and we didn't move due to delays, and this happened a few times. However we have recently been told that the move is now underway (office fitters in place etc) and will happen beginning of March. They have also told us that they don't need to make us redundant if we don't want to go, but that they won't see anyone losing out, and would come up with a compromise agreement

 

Well that sounds ok, and 2 people have already left under this. I have told them that I will not be going to London as it causes too much of a change in my family committments. However this morning they told me that they want me to stay until they move and that my compromise agreement will only be my notice period and any commission that I earn (I'm in sales), but the commission will be taxfree.

 

This seems a little unfair as I could get to leaving day and end up with virtually nothing (as things are tough in our market, and I will be looking for a new role anyway)

 

Does anyone know if I should be entitled to redundancy. They really don't seem to want to pay it, and I don't know why. I'm happy to stay until they move, and just get my notice and my redundancy pay (which would probably only be statutory anyway)

 

Help... I can't find anything online that can categorically say whether I am entitled to redundancy or not.

Edited February 9, 2011 by chopster300

[rebel11]

Hi chop

 

Welcome to CAG

 

The guys will advise as soon as they are available.

[elche]

Hi Chop,

 

The legal definition of redundancy does potentially cover situations where the businesses ceases in one particular location.

 

The question of whether you can force the ER to pay you SRP in addition to your notice pay may depend on whether there is a mobility clause in your contract.

 

This was examined in detail in the 2008 case Home Office v Evans - read this - http://www.11kbw.com/articles/docs/CJHOMEOFFICEvEVANS.pdf

 

If yo were made redundant the only additional payment (over notice, accrued holiday etc) would be the SRP which as a minimum would be either 12 x £380 (statutory redundancy pay) or 12 x £[WEEKLY WAGE] if you earn less than £380 per week. non-taxable (subject to a tax-free limit of £30,000) It could be more depending on your age -

 

Do your own calculation of SRP here - http://www.direct.gov.uk/redundancy.dsb

 

Do you have a mobility clause in your contract? Have you always worked in one place? How long is your current commute to work? How long would it take to get to Canary Wharf (geography not my specialty!)? Have you any particular personal circumstance that your ER is aware off that would make the move particularly onerous for you?

 

Che

[chopster300]

Hi Che

 

Thanks for responding. To try and answer the above questions as best as poss.

 

My contract has the following wording in it "your normal place of work is ****** although you may be required to work on a temporary or permanent basis at any other location within the UK"

Is that a mobility clause? It's fitted in to the middle of a whole paragraph about start dates etc.

 

Have I worked in one place, difficult. When I started we were in Bexleyheath. After about 4 years, we moved to a bigger office about 100 yards away. Then about 3-4 years later they asked us to move offices down to Tunbridge Wells to be part of a Group. That was fine as the trip was against traffic, and takes the same time (sometimes less) although more mileage.

 

Currently leave at 7.40am to get to work (8am when the kids are on school hols) and get in my car and drive to work. To get to Canary wharf I would need to leave my house at 7am, 20 min walk to station (whatever the weather), followed by cramped train journey, followed by even more cramped tube journey.

Journey home much of the same, getting home about 7.15 (currently 6.30)

 

When my boss asked why I'm not making the move, I explained. The reason is my children. I have 3 young children that my wife has to deal with all day long. They are wonderful children, full of life, and I am a very family orientated person. Being there for them is more important than working till midnight every night and earning the extra money. On the new timings, I wouldn't see them. I would leave the house before they got up, and come home when they are in bed (might still be awake but in bed all the same) The 2 year old would be asleep. It also means I would no longer be able to pick them up from any of their evening clubs (gymnastics and brownies) but this would make it more difficult for my wife, as she would have to be dragging the 2 year old out when he should be bathing or going to bed.

Also, when the schools are on holiday, I get a respite on my journey time and can see the kids more. If I go to London, I will still have to leave at the same time everyday even during school hols.

Overall, the move to London is going to affect the family dynamic quite drastically. I haven't worked in London for 20 years, and there is a reason for that. I don't want to start now.

 

I have explained all this to my boss, thats when they went away and came back with this ridiculous offer as a supposed Compromise agreement. I thought the idea of a Compromise agreement was that it would be the same as or slightly better than a redundancy agreement to make you want to sign away your right to any claims.

 

 

Does that help at all?

[elche]

My contract has the following wording in it "your normal place of work is ****** although you may be required to work on a temporary or permanent basis at any other location within the UK"

Is that a mobility clause?

 

It is, and in your case, it would appear that on occasion it has been invoked. It is a tricky one as the move is commutable for you.

 

Easy answer - the CA - should have a clause in it saying that you need to receive (and they will pay) for legal advice before you sign it. Thus use this paid for meeting with a solicitor to discuss your chances of success for the argument that you are entitled to SRP.

 

Ultimately neither side will be absolutely know that they will win if the point were litigated - so negotiate, and use the amount in the CA to do this.

 

Che