Being made redundant, employer not paying full notice

D

DA

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My employer has announced that they are closing down with immediate effect. We are being paid only the minimum statuary redundancy.

My contract says that I will be paid 3 months notice.

But the employer says that it is "custom and practise" to pay only one month so they are paying us only one month. He says that I should be grateful as most of us are being let go immediately and won't have to work the month, so we are being paid for not working.

Can I do anything about this? It's a subsidiary of a British company and they have the money.
 
Contact the HR/legal team. They are breaking their contract - those departments may not be aware of this.
 
Thanks Kildavin

Its a very small company in Ireland. Three of us got our P45s today with one months pay.

What can we do about it?

Good references are very important in our industry.
 
I advocated on another thread the employee breaking a contract. Here, an employer is breaking his.

If a reference is that important - play nice and make sure you get that reference for the next job.

(Life's not fair - but your priority now is to regain employment so you have to roll with the punches)
 
It's not clear from your OP if the 3 months notice is what the employee has to give, or if it applies to the employer as well. I think it would be highly unusual to have a contract where the statutory redundancy notice times are exceeded.

See the following for notice periods in cases of redundancies:

http://www.citizensinformation.ie/e...undancy/redundancy/redundancy_procedures.html

That is, the notice period depends on length of service. I've no idea what the employer's "custom and practice" refers to.
 
ang1170 said:
I've no idea what the employer's "custom and practice" refers to.
Click to expand...

I think the employer is saying 'I know we stuck 3 months notice in your contract, but seeing as we're the ones calling on this term of contract, we're only paying you one month'

It's the opposite of that other thread on a similar topic.



Steven
www.bluewaterfp.ie
 
@ang1170

The three months notice applies from employee to employer and from employer to employee, so it seems to me that they must give me three months notice. They seem to know this but are refusing to do so. What can I do about it.

@TTI
I am with the company since January 2012. What difference does that make?
 
This business is closing down and in that situation employees are entitled to the conditions of statutory redundancy. This is a totally different situation from an individual being let go and the company continuing to operate.
 
OK, the redundancy is not in dispute.

The minimum notice under this is apparently two weeks. He is giving me that because he is actually paying 4 weeks notice.

He is also going to pay us what the redundancy money is which is 6 weeks. 2 weeks for each year of service plus one week.

But it's the notice things which bothers me. He should pay us for three months notice, but it seems as if there isn't anything we can do about it if he doesnt.
 
DA said:
@ang1170

The three months notice applies from employee to employer and from employer to employee, so it seems to me that they must give me three months notice. They seem to know this but are refusing to do so. What can I do about it.
Click to expand...

Are you sure the notice period applies to both parties? This strikes me as highly unusual. Are there circumstances outlined where the employer's notice period is invoked? Maybe it's a fixed term contract? The notice period in most contracts I've seen relates to employees handing in their notice, not the other way round. As explained in the link (minimum) notice periods for redundancy are dependent on length of service.

I think you need a legal opinion on this by someone who's seen the contract.
 
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