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squidgy72 | 12:04 Wed 19th Sep 2007 | Jobs & Education
8 Answers
dear all

i have been employed by the same company for 7.5 years. the company has been sold to another competing company. the deal is done and paperwork has been signed for a completion at the end of october. the old owner who will still work for them, isnt saying anything about our future, its a small family run company and he keeps just saying everything will be alright. whenever we ask about what we will be offered we just get told it will all be discussed after the completion at the end of oct. theres only two of us in the office and both of us are worried about what we will or wont be offered. i was told that i would get a payout if i stayed in place until papers were signed which was at the end of june but when i asked for my lump sum i was told it now wouldnt be given to me until completion end of oct. after telling my boss how lied to i felt he reluctantly gave me a third of the amount and said the rest would come end of oct. i feel anxious because i cant plan my future and the new company is a long drive away and im not sure if i want to stay on if they dont allow for all the travelling ie offer me exactly the same contract. the payout seems to be much more than im due for the service length but with nothing in writing he knows he can change his mind if i get too awkward. basically i dont think i want to stay once i have my money, but will i have to give notice once the company is under new ownership, in my current contratc i have to give them one month, but after being made to stay in this way i want to leave as soon as i get my money. the money by the way is a personal thankyou from the owners personal account and not paid through the company. any help would be a great relief and any thoughts on tactics would be most welcome. thanks for reading. squidgy
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I guess from the size of the company you do not have a union to fight your corner the only suggestion i can think of is to approach ACAS for a confidential chat and see if they can advise you on your rights they have been helpful to me in the past after my company lost a huge contract and i was made redundant and had to fight for a payout hope this helps
You're not being made redundant then? The payment is a goodwill gesture I assume or could be seen as a bonus?

If there's nothing in writing then it would be very difficult for you to make any sort of claim for this.

As your company is being taken over you have the same terms and conditions as previously. From what you say therefore you will have to give one months notice.

I think you will have to weigh up not wanting to work for the new company with possibly losing your goodwill payment.
Question Author
thanks. what would the situation be if i waited for my payment but then insisted i wanted a new contract ie to cover travelling or relocation. with a new contract would i thenbe relived of a months notice? can i still claim redundancy money if they let me go based on not wanting to cover my extra expenses?
You could ask for reimbursement for extra traveling expenses and see what they say. If the distance is unreasonable for you to travel or absorb the cost yourself then they should pay the extra or lose you. It usually says something in employment contracts about relocation expenses etc.

Any extra money would only be a change to your contract not a new contract so you would still have to give a months notice. Even if you were given a new contract you would have a period of continuous service.
Question Author
thanks. so if they decide to loose me, either by way of not covering the costs, or they just think they dont need that many staff to cover the new combined companies' business, (business is identical to ours with similar counterpart staff in place) would i then have a claim? or are they just entitled to give me notice in that respect? squidgy
Its a shame when small businesses treat their staff in this way, and from reading all the above it isn't clear to me whether the owner understand his legal responsibility to you as an employer or not.
At the end of the day, if he is terminating your job through redundancy he is obliged to tell you this in writing, to provide you notice that he is doing this, and to provide you with some compensation.
Regarding notice, you are due a minimum of seven weeks notice because of your period of service - or more if your contract of employment specifies more than 7. He must either give you 7 weeks notice in writing and ask you to work the period of notice or pay you the money in lieu.
Regarding redundancy payments, the minimum payments are defined in law but he could chose to pay you more.
The amount you receive is dependent on you age - see here.
http://www.dti.gov.uk/employment/employment-le gislation/employment-guidance/page15686.html#W hat_are_the_payments
Note that the 'weekly amount' is currently capped at �310 pw - it is this figure that a decent employer will sometimes waive in calculating the severance.
I suggest you ask for a meeting and make specific notes on what is said. Ask directly whether you are being made redundant by your present employer, or whether you are being transferred by the new employer, in which case your employment rights are preserved under TUPE. If they are transferring you, ask about arrangements will apply for the extra distance to travel. They are not obliged to offer you anything, but then they are obliged to offer you redundancy terms.
Part 2
I would treat the money given to date as a bonus - a bit cheeky perhaps but you've hardly been treated professionally. If it has not been paid through the company financial books (by company cheque, say - with a slip explaining the payment) to all intents and purposes it looks to me like a gift from one person to another. There's a tax-free up to a figure (�3000 pa I think). Tell your employer that's what you thought it was. ...now back to our discussion - are you making me redundant or not?
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thanks, thanks, and thanks to all who answered! but!! would anyone then know what would happen if i were to recieve my 'bonus' and then leave without notice, i am planning to move overseas sooner rather than later, and i have delayed my plans which have had to be put on hold as the bonus was deferred, as above, to the new 'signing' date. I am sort of at a point where the whole family is waiting for me. thanks

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