Employers Relocating - Is redundancy possible?

[champerington]

Hi all,

 

This is my first post on the forum.

 

I am a single father of 2 children (3 & 2). The children live with me fulltime.

 

I am currently employed and work 37.5 hours a week. I have a childminder look after my children while i work.

 

My employer has just announced that they plan to relocate 47 miles away. With the added costs of childcare alone, i simply won't be in a position to survive financially.

 

I have spoken with my employers and they are willing to consider compensating me with an increase in salary, however they have indicated it unlikely.

 

I have been with the company for 4 years. Have i any right to request a redundancy?

[Conniff]

You don't request redundancy, redundancy comes about because the job is no longer there:

 

Redundancy is when you dismiss an employee because you no longer:

 

• carry out the business for which they are employed
  
• carry out the business in the place where they are employed
  
• require them to carry out work of a particular kind
  

For a redundancy to be genuine, you must demonstrate that the employee's job will no longer exist.

 

So they could make you redundant.

[champerington]

Thanks for that.

 

So if my employer are unwilling to compensate me for the added costs, does this not qualify then as redundancy?

[Conniff]

It depends on how the word 'reasonable' is interpreted. Is it reasonable for you to stay where you are and travel, you say not, (cost), would a tribunal consider 47 miles travelling as reasonable.

 

Personally I would say no, it is not reasonable for you to move.

 

Can you not relocate?

[champerington]

Well its not reasonable considering my circumstances.

 

Is it reasonable for me to relocate? Again considering i am a male raising two young girls, the fact that i am close to my immediate family can not be understated.

 

However, maybe there's nothing i can do? Just become unemployed, look after my children myself, and receive benefits.

[Conniff]

I feel for you, I really do, there's not a lot of satisfaction in living on benefits.

 

Could you not ask for a trial move for say a month to see how you would get on? I know friends and family are very important especially with a couple of girls to bring up. Could you have a chat with them and see what they think.

 

Also, of course, is the reason the company is moving. If it's because money is tight and they are moving into cheaper premises to reduce costs, I would consider a relocation not the best move.

[champerington]

A trial move with no compensation is not possible, as i can't afford to pay the additional childcare costs.

 

If they refuse to compensate me, then i simply can't relocate.

 

Would there be nothing in my contract that might offer me some protection here?

 

If they refuse to increase my salary accordingly, and i am forced to go into unemployment, have i any right to ask for some sort of financial package, considering my 4 years service.

[millitant]

a lot depends on how many people are expected to move to this other unit

 

47 miles is unreasonable to travel without any financial assistance. i believe a tribunal would expect up to 30 miles traveling distance as reasonable in this case. the norm is the company would offer some sort of financial arangement say up to three years if you decided to move. milage allowance for instatce as the company would like to hang on to qualified staff and offset the milage against traning costs. the sinario is not guaranteed and is subject to redundancy negotiations

 

your only option would be redundency if you are not prepared to move

 

minimum redundancy pay set by the goverment is £430 for every year but your own employer may be higher in redundancy terms

 

as child care issues are involved the employer by law has to consider flex working practice as well in any redundancy option

[champerington]

Thanks for your comments Millitant.

 

The entire company is moving, which equates to about 20 employees or so.

 

I really don't want to move regardless if i get compensated, but are you saying redundancy is still possible, even if i was, and rejected the offer?

[millitant]

if the company has decided to move then yes, redundancy has to be offered if it is unreasonable for you to travel

 

your company will state the reasons for moving and give you your options

 

work as normal

work under protest

resign and claim constructive dismissal

 

those will be your three options at the end of they day besides taking redundancy

 

how long is it till the move

 

has the consultation period started yet, one 2 one for example

[champerington]

To be honest there has been no formal proposals made, not sure whether there will be!

 

Following the announcement to staff in the canteen, i waited a week and a half, then spoke with one of the directors.

 

I informed him of my situation and he said he would speak with the other director and come back to me. (Is this technically the one to one consultation?)

 

We have been told they hope to be in new premises by July.

 

Any help or guidance on how i approach this would be greatly appreciated.

[millitant]

they are cutting it fine

 

they have to anounce when the consultation period will start has has a minimum 30 day period for 20 staff to anounce redundany

 

A minimum consultation period of 30 days applies where between 20 and 99 employees are potentially affected.

 

you are governed by statute legislation now which the employer cant overide

Edited May 29, 2012 by millitant

[champerington]

Interesting!

 

I honestly don't believe any consultation period will be declared.

 

Is there anyone i should be in contact with that could advise me on the specifics of this situation.

[millitant]

your employer should be doing this through a workers rep if you do not have a union

 

give ACAS a call

 

they will advise on the phone in confidence on any employment issue including redundancy

[champerington]

Thank you.

 

Out of interest, what is your background for advising on such an issue.

[millitant]

i am a legal and medical secretary for a national trade union

[champerington]

Many thanks for your advice and guidance.

[millitant]

my pleasure

 

just give ACAS a ring

[millitant]

The Trade Union and Labour Relations (Consolidation) Act 1992, as amended by the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1995(10), requires employers to consult about redundancies in circumstances where it is proposed to dismiss 20 or more employees at one establishment over a period of 90 days or less.

[Conniff]

I did mention that you could go redundant in post #2, second bullet point. 100 miles per day isn't reasonable.

 

Take it upon yourself to get the ball rolling, ask them directly what they intend to do with you as you can't relocate.

[millitant]

the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1999, consultation has to be with a trade union where one is recognised, or with other elected representatives of the affected employees where no trade union is recognised. (Employers continue to have a duty to act fairly and reasonably in handling redundancies and informing and consulting affected employees individually, regardless of the number of dismissals)(11). The consultation must take place with a view to reaching agreement with the appropriate representatives and must include discussion about ways of avoiding the redundancies, reducing the numbers to be dismissed and mitigating the consequences of any redundancies. Consultation should be completed before any redundancy notices are issued.

[champerington]

I have just established that we have a staff of 19.

 

Is there therefore, any minimum consultation period in this instance?

[honeybee13]

Hello there. Is this what you're referring to? From the ACAS website:

 

Consultation

 

Employers are required to consult with the 'appropriate representatives' of any of the employees who may be affected (directly or indirectly) by the proposed dismissals or by any measures taken in connection with those dismissals.

The consultation should include ways of avoiding the dismissals, reducing the number of employees to be dismissed, and mitigating the effects of dismissals. Consultation must be undertaken by the employer with a view to reaching agreement with appropriate representatives on these issues. This duty applies even when the employees to be made redundant are volunteers. Failure to comply with the consultation requirements could lead to a claim for compensation, known as a protective award.

Consultation should begin in good time and must begin:

 

• at least 30 days before the first dismissal takes effect if 20 to 99 employees are to be made redundant at one establishment over a period of 90 days or less
  
• at least 90 days before the first dismissal takes effect if 100 or more employees are to be made redundant at one establishment over a period of 90 days or less.
  

 

 

It might be worth giving ACAS a ring if you haven't already.

 

My best, HB

[champerington]

Many thanks HoneyBee

[champerington]

Hi all,

 

Having contacted ACAS, i was advised to find out of i had a mobility clause in my contract. I established that there was none.

 

I have now approached the Owners, and asked if they are willing to offer me a redundancy.

 

It is my understanding that the minimum payment is a weeks pay for every years service. I'm sure they will not offer any more, however i know of a friend, who works in a Bank and has been offered a months pay for every years service. Have i any right to try and negotiate a larger payment.