Forum Topic

Company in administration redundancy payment question

Quick question.  We are trying citizens advice and queuing for ages. Nephew has lost his job company gone into administration due to covid. (Large retailer)He has a redundancy package albeit a small one. He is struggling to find a new job and knows it may take some time. However the company in question has now called him offering him another job in their online sector.  He is not keen but it is a job and he will probably accept and carry on looking elsewhere. His question is will this affect the redundancy package he has just been told he will receive through government.

Sean Wales ● 2313d9 Comments

Hi SeanYour nephew’s safest bet is to call the DWP and hear it directly from the horse’s mouth.  Make sure he has his NI number to hand.Good luck

Georgina Flint ● 2313d

I would also recommend calling ACAS.  They have a lot of knowledge of this area and usually give very sound advice at no cost

J. F. Bingham ● 2313d

I would ask the employer as it is them who will be paying the redundancy package. Generally when companies make redundancies they have a duty to offer any other potential opportunities in the business. The employee does not need to accept a different job and indeed the employee does go through normal interview process. If they choose not to accept another role it doesn’t affect their redundancy package.

Jayne Thorburn ● 2313d

I should add if he has an opportunity to transfer to an online/ digital role great opportunity and much easier to get another job down the line. Retail will continue to reduce the size of the estate.

Jayne Thorburn ● 2313d

It may be the case that the company that is offering the new job is not the same as the company who employed him previously.  What typically happens in an administration is that the administrators look to sell on the business as quickly as possible to a new company - which may even be trading using the same name as the old company: you will need to check the company numbers which should be listed in all correspondence.Citizen's Advice are really good on giving advice as are the Unions

Justin Stephenson ● 2313d

JT > "If they choose not to accept another role it doesn’t affect their redundancy package."Are you sure?From the .gov website, redundancy rights, suitable alternative employment:"You may lose your right to statutory redundancy pay if you unreasonably turn down suitable alternative employment."Source: https://www.gov.uk/redundancy-your-rights

John Whitworth ● 2313d

SW > "His question is will this affect the redundancy package he has just been told he will receive through government."The information at the following links may help:https://www.gov.uk/redundancy-your-rightshttps://www.gov.uk/your-rights-if-your-employer-is-insolvent/your-rights

John Whitworth ● 2313d

I'd second the course of contacting ACAS - they have a helpline number you can call, it's on their website.

Micki Hawkes ● 2313d

Contact/join the union that represents employees at the company or that work sector, possibly USDAW. If it's a large retailer there should have been consultations and period of notice, etc.  Get employer/administrator to explain it properly.  If it's the 'same' company, it could be an in-house redeployment/TUPE transfer so possibly no redundancy.  If not, you might get redundancy pay off from present employer and immediately pick up 'new' job with the 'new' employer, but watch pension entitlements, etc.

Peter Evans ● 2313d