Hi all,
Hopefully someone here has HR/employment law knowledge.
I have just been informed that my employer is going to put me (and many other staff) on a 60% salary - asking us to work 3 days a week.
They are sending me a letter (haven't received it yet). What are my options?
If I sign it then I am on 60% of my salary which doesn't cover the bills.
If don't sign it - what does that mean? What can they do? I think I would rather be made redundant as I am on 3 months notice so if they paid me the 3 months in one lump sum it would be tax free. If I don't sign it - can they enforce it or would they have to make me redundant/fire me?
Michael
They are not making you redundant. If they were, they would communicate that to you in writing and engage in a consultation process.
What they are doing (as they may argue in a legal challenge) is that there is a reduced demsnd for your role given the unprecedented situation we are in. They cannot sustain cash flow as it is and so they are taking 'reasonable' steps to stay afloat by their actions.
You cannot ask or demand redundancy.
You have NO claim for dismissal - because they have not dismissed you and neither do they intend to from what you make out. You do not share details of your employment contract or terms and conditions making it difficult to give more accurate guidance.
If the company goes down, you will have no claim in any case as you'd be one of several groups of unsecured creditors.
If you lose your job, you should consider that you could be on zero pay for many months - depending on your age, location, industry. In all likelihood, you may not qualify for welfare support such as Universal Credit. Things are going to be at or close to recession for many years after this pandemic is over.
I was coaching a senior exec from a top 3 global pharmaceutical company that was a client of mine after he resigned without a job to go to following numerous disagreements with his very senior leader. He was 50s and out of work for 30 months. He finally got a job with a small local company paying 30% of his former senior pay package.
He spoke 4 languages fluently, was a qualified doctor and P&L General Manager.
And he struggled to get back to work.
So my suggestion to you, is to think very carefully about their proposal. Do not engage in trying to negotiate redundancy (it defeats the purpose of hheir offer as they will pay out more - where they are trying to save and reduce outgoings). They will (or should) have taken legal advice about changing your terms and contracts to ensure little chance of a legal challenge from you succeeding or even being made.
Speak to a solicitor, but I think after spending several hundred pounds on 1-2 hours of legal advice at £280/hr plus VAT you'll take the decision to accept their offer as you have been placed between a rock and a hard place. A good solicitor will likely highlight what I have said in my two posts.
I am not a solicitor
Consider also litigation by all means. But remember to search for defining and answering the vexed question: "What is your loss?" Then weigh that value of loss against the simple fact that to litigate, your costs to pursue that loss are likely to start at around £30,000!
I have talked to so many people in similar situations as I had a lot of corporate senior experience of firing staff, managing them out and negotiating their hire. It depends on what your terms snd conditions are in the contract and the strength of your employer's ability to prove reasonableness under unprecedented situations. They are offering you continued employment on different terms. That may be better than declining and having nothing. There is no redundancy. By declining, a lawyer may tell you that you dismissed yourself.
Caught between a rock and a hard place.
Let us know how you decide.