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Redundancy

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Redundancy

In this thread the subject of redundancy was raised and not wishing to hijack the thread any further I have started this one.
I said that I was recently replaced by a contract IT support company after providing over 10 years of in-house support.
A Fox is Evil made this comment
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I hope you applied for unfair dismissal, since your job was not redundant.
Alternatively, TUPE would apply...


To which itsme replied
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The job was redundant as the company that Strat worked for no longer employed IT personnel. If the contractor had to employ someone to do Strat job then a case could be made to TUPE across.

A Fox is Evil responded with
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If the job is still being done by someone then there is no redundancy situation.
Sounds like it's too long ago anyway!

My redundancy took effect at the end of September this year and as I was the only person doing the job, no-one within the company took over my duties. Instead the duties were farmed out to various companies.
The definition of redundancy appears to be a grey area according to my investigations.
Here is a quote from Directgov
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What is redundancy?
Redundancy is a form of dismissal from your job, caused by your employer needing to reduce the workforce. Reasons could include:
new technology or a new system has made your job unnecessary
the job you were hired for no longer exists
the need to cut costs means staff numbers must be reduced
the business is closing down or moving

The need to cut costs was the reason given to me.
Quote from ACAS site
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the employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was so employed
the employer has ceased, or intends to cease, to carry on the business in the place where the employee was so employed
the requirements of the business for employees to carry out work of a particular kind has ceased or diminished or are expected to cease or diminish
the requirements of the business for the employees to carry out work of a particular kind, in the place where they were so employed, has ceased or diminished or are expected to cease or diminish
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7 REPLIES
magnetism2772
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Registered: 06-06-2010

Re: Redundancy

reduncancy rights are only applicble to full time workers who have
completed at least 2 years with the same employer
if a company declares its self bankrupt
redundancy payments and wages owed take the same priority as  with any other credtor
if it cant meet its debts then a company is insured and the government picks up
only a part of the company employee redundacy payment
but not including holiday owed
i'd need to check this out myself  , to see if allof it is correct
and the regulations are changing to make it even easier to lay of staff
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Re: Redundancy

Basically this comes under TUPE and reading this http://www.freshfields.com/publications/pdfs/2006/14961.pdf it would appear that it isn't necessarily unfair
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Redundancies
The contractor is also likely to have some idea of the numbers of employees it will need in the future. It may require a smaller workforce than transfers to it under Tupe. The customer and contractor will usually negotiate who will bear the costs of redundancies flowing from the outsourcing.  Dismissals by reason of the Tupe transfer will be automatically unfair unless there is an economic, technical or organisational reason entailing changes in the workforce (an ETO reason). A redundancy will normally qualify as an ETO reason.
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Re: Redundancy

Dick, I am sorry this has happened to you. The owner has made a real mess of that business. When I left in 2005 it employed 48 people and was in profit. How many are left now, fourteen people or less?
My understanding is that compulsory redundancy occurs if the job no longer exists and there is no option for redeployment. If there is an IT support requirement (or purchasing) that is still required then redundancy should not apply.
I wish you well.
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Re: Redundancy

Thanks Oddball.
I was not sorry to leave as the frustrations of myself and most others were becoming unbearable (and still are) at what some described as totally incompetent management.
As I said earlier my redundancy was implemented allegedly as a cost cutting exercise, something I can't argue against as costs needed to be cut to counteract waste elsewhere.
For me life is now good......for the time being Smiley
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Re: Redundancy

Many years ago one of the Health Authorities decided to contract out all the domestic and portering services.
All existing staff were offered new contracts of employment with this private company with their existing wage levels guaranteed. (sounds fair)
New staff were employed on much lower rates of pay but when it came time for pay increases all those who had taken jobs with the private company were told no further pay increases until the level of pay  of new staff had reached those with a guaranteed level of pay.
There was no option for redundancy as existing workers were being offered jobs with the new company !
Fortunately it did not affect me but I have been put in the position of having to reapply for my job everytime a reorganization took place in the Health Service.
Pleased to say retirement took care of this problem.
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Re: Redundancy

sorry the previous post should have appeared under redundancy !
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Re: Redundancy

It is now