Possible redundancy

[purpleozzie]

Hi there,

 

I recently started a new job, about 4 months ago. I had a 6 months probationary period.. At the same time the company took on 2 other new sales guys.

 

Now 4 months down the line all our sales figures are quite poor as the industry is in a slump and the company basicaly tried to expand too quickly. The two sales guy who were already working for the company, there figures are also down. Me and the other 2 sales guys were called in today for meetings separately where we were told that they are restructuring the company and this means that atleast one of the sales positions has become redundant.

 

They said that they wanted me to go away and think about alternatives to me being made redundant over the weekend and meet with them on monday to discuss.

 

Out of the three sales guys I had no prior industry knowledge and the other two guys had years. I feel that if they are going to let someone go it will be me even though my sales figures aren't the worst. The guy who had about 25 years experience and has tonnes of contacts his sales figures are much worse than mine..

 

I really don't know what to do.. What do they mean by alternatives???

 

how should I present on monday???

 

and what rightys, if any, do I have?

 

thanks,

 

Tom

[honeybee13]

Hello there.

 

I expect the guys will be along later with advice for you. We've seen this type of thing before, so I'm sure they'll be able to help you.

 

My best, HB

[Emmzzi]

they are going through the motions a little. alternatives would be for you all to take a paycut, everyone does a 4 day week, and so on. Or for them to find you a different job - do they have any vacancies?

 

I am afraid it doesn't look great!

 

Technically you have been there too short a time to get a redundancy payout. You have a right to be given correct notice and paid any unclaimed holidays.

 

I assume they are doing this with all the sales team and not just you?

[purpleozzie]

yep.. They're doing it with all the sales team..

 

Would I be right in assuming that because I'm in my probationary period they don't have to go through the usual procedures of warnings..

 

As this has kind of come without warning. We all knew our sales figures were down but it's across the board and not just one sales guy who's suffering...

[Emmzzi]

You don'y really "warn" for redundancy as such.

 

It's unusual, I would myself let the probationary guy go then do a selection from the remainder a couple of months later - much easier. I wonder if they are doing it this way to try and keep you over one of the others?

[purpleozzie]

Unfortunately we are all,in our probationary period..

[Emmzzi]

then your employer is a bit daft and should just choose... ah well! fingers corssed mate, not much you can do

[purpleozzie]

just on another note, assuming i do get the chop I'm assuming the clause in my contract stating that I can't work for a competitor for 6 months is null and void..

[becky2585]

just on another note, assuming i do get the chop I'm assuming the clause in my contract stating that I can't work for a competitor for 6 months is null and void..

 

Unfortunately not, unless they fundamentally breach your contract. Dismissal alone doesn't do that, sadly.

[honeybee13]

That sounds a little unfair, Becky. purpleozzie needs to work and if the company don't want him isn't that rather restrictive?

 

HB

[Emmzzi]

It is indeed, but the time to challenge is before you sign the contract

[honeybee13]

Thank you for the clarification, Emmzzi. That's a tough stance, isn't it?

 

HB

[becky2585]

That sounds a little unfair, Becky. purpleozzie needs to work and if the company don't want him isn't that rather restrictive?

 

HB

 

Unfair and draconian, yes, particularly after only 4 months in the job! Legal, though - probably!

 

The same principle applies to any restraint of trade (restrictive covenant). Providing it only goes as far as necessary to protect legitimate business interests, it's probably enforceable.

 

It's still always possible to find a job that doesn't breach the contract, though.

[Emmzzi]

Thank you for the clarification, Emmzzi. That's a tough stance, isn't it?

 

HB

 

little bit

 

In reality you make a judgement call of how similar your new job and how likely boss is to sue. If they can't fford solicitors, for example....

[honeybee13]

Thank you ladies, good answers.

 

HB x

[Sidewinder]

That would indeed be tough, but any challenge would rest on the precise wording of any restriction. Many are so badly worded, or so restrictive that they would simply not stand up to any legal scrutiny. For a covenant to be enforceable, they should restrict the employee only so far as is necessary to protect legitimate business interests, for as short a period as is necessary to fulfil that, and in as small a geographical area as is necessary to protect the interests. A clause which prevents an individual from seeking employment anywhere, for any competitor - ever, would therefore almost certainly be unlawful, however a short term restriction in a limited geographical area would be more workable - and more likely to be upheld in Court should the former employer seek an injunction.

[purpleozzie]

Just another point that I would like clarification on. They have basically offered the other two sales guys a 10k pay cut to keep their jobs but not offered this to me.. I am assuming by Monday both these guys would have made their mind up about whether to accept this offer. Therefore my meeting on Monday is about offering me this deal if one of the other guys turns it down or saying goodbye if both accept.

 

Their reasoning for making my position redundant, at the initial meeting was that "I had no industry knowledge" whilst the other two guys had 20+ years and they felt that they wanted people with networking possibilities.

 

The fact I had no industry knowledge was one of the reasons they hired me as I could put fresh ideas on the table. My figures are not the worst out of the three of us. So could I claim discrimination on these grounds.

 

Cheers

[becky2585]

I'm afraid that's not discrimination - its common business sense!

 

You can only claim discrimination on grounds of age, sex, sexual orientation, gender reassignment, marital status, disability or race.

[purpleozzie]

I'm afraid that's not discrimination - its common business sense!

 

You can only claim discrimination on grounds of age, sex, sexual orientation, gender reassignment, marital status, disability or race.

 

On another note just realised I have never received a contract only an offer letter.. is this legal

[becky2585]

It depends what the offer letter states. You aren't entitled to a "contract of employment" by law - merely a statement of written particulars (which can be contained in an offer letter) and has to contain certain information (see Section 1 Employment Rights Act 1996).