Redundancy vs job offer when company winding up

Anvarion

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I work for a small marketing company. In recent years, it has "spun off" a new company.

We, the employees, have now been told that the old company is to be wound up. I have been offered a job in the new company at a small raise, doing slightly different work. I have declined this offer, as the new company's direction is taking it away from the work I want to do and am good at. I can get a job elsewhere without much difficulty.

My boss is telling me that since I was offered a job in the new company, and since both companies are under the same ownership, I will be deemed to have resigned at the time of refusal of the offer, and will not receive redundancy payment.

Is this correct?

Since I have been in the old company for 7 years, the redundancy payment would be substantial.
 
Under the TUPE regulations (Transfer of Undertakings) you could be deemed to have transferred, with your existing contractual obligations, to the new company. To provide definitive advice on this I would need to know more about the nature of the "spin off".

Provided there was a TUPE transfer, there should be no issue of you being "offered" a position, as you were entitled to transfer across. Any redundancy claim would be against the new company. However, the new company have offered you a new position which appears to be within your skill sets. Accordingly, based on the limited information in your email, you could deemed to have resigned if you do not accept the position.

Jim Stafford
 
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