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Offered Alternative Job, Will I Still Get Redundancy Money?

By: Emma Eilbeck BA (hons) - Updated: 5 Oct 2017 | comments*Discuss
 
Redundancy Money Job Pay Safe Redundant

Finding a new job when you have been made redundant can be both a blessing and a curse in disguise.

A new job means the end of your money worries but it can also impact your redundancy pay.

These few questions should help you work out whether your redundancy pay is safe.

1) When Does Your New Job Start?

  • A) I can choose a start date
  • B) Not for another couple of months
  • C) Straight away

2) Did You Get Paid Your Redundancy Money Straight Away?

  • A) I have already been paid my redundancy money in full
  • B) I still have a couple of weeks to wait before I receive it
  • C) I am still technically employed and will need to wait a couple of months

3) Do You Have a Consultation Period?

  • A) No, I entered straight into redundancy
  • B) I have a one month consultation period
  • C) Yes, I’m currently in consultation which will last a couple of months

4) Did You Volunteer For Redundancy?

  • A) Yes I took voluntary redundancy
  • B) No I was not given the option
  • C) I was given the option but turned it down

5) Is Your New Job With the Same Company?

  • A) No, it’s with a different company
  • B) It is in a different part of the company
  • C) It’s within the same company

Your Answers

Mostly A – Your Redundancy Pay Is Safe

You can breathe a sigh of relief because it sounds like your redundancy pay is safe. You have the best of both worlds and have managed to find a new job and keep your redundancy pay in check. If you have already received your redundancy pay, in 99% of cases it will be impossible for your employer to snatch it back.

If you opted for voluntary redundancy it will often not come with any conditions attached. If your new employer has given you the option of choosing your start date you should make sure this comes after any consultation period your employer has placed on you.

Mostly B – Your Pay Could Be At Risk

If sounds as if you are on a fine line and could risk losing your redundancy pay. If you have not yet received your redundancy pay, but have been offered a new job it is important not to leap in too early if you want to safeguard your payout. If you have a consultation period or have been given a date when you will receive your redundancy pay you should not start work before this date, even within the same company.

Many employers will offer you an attractive redundancy package but also a new job within the same company in a bid to avoid paying you a hefty payout. You will not lose anything by checking with your employer whether accepting a new job will risk receiving your redundancy pay. By law your employer is obliged to be honest with you, so you should weigh up the pros and cons of accepting a new job.

Mostly C – You May Not Be Entitled To Your Redundancy Pay

If you plan to start a new job before your consultation period has ended you will almost certainly lose your redundancy pay. This is not necessarily a bad move though, if your redundancy pay is only around two months’ pay it could be more beneficial to accept the new job.

If you are lucky enough to be a high earner though your redundancy package may be more substantial with some packages equating to almost six months’ wages. If you risk losing out on a huge sum you might want to decline the job and think about looking for a new one once your consultation period is coming to an end.

A redundancy payout is a rare bonus that comes from being made redundant and if possible you don’t want to lose it. If you have been offered another job which would mean you break the terms of your consultation or lose out on your payout you might want to try and push back the start date of your new job or re-consider.

You should only really re-consider if you risk losing a substantial redundancy package as in many cases a new job is more valuable than any redundancy package.

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Share Your Story, Join the Discussion or Seek Advice..
[Add a Comment]
Our firm is currently going through the redundancy process - we are still at collective consultation.The roles available for those who remain are not deemed suitable alternative roles and have not been offered as such.What is to stop someone who is made compulsorily redundant applying for a lesser role within the firm after a break in service and still being paid redundancy pay?
yazza - 5-Oct-17 @ 2:56 PM
I am to be made redundant from a school admin job on 31st December. can I take another job or just supply work from 4th January or do I have to wait longer?
redrose - 20-Sep-17 @ 5:00 PM
TAZ - Your Question:
I am currently on redundancy notice in education with a termination date of August 31 2017 along with a redundancy payment. I have been offered a job starting as soon as possible not with education but with the NHS. Will this affect my redundancy payment.Any advice, support or guidance.ThanksTAZ

Our Response:
You can see more via the CAB link here which should help answer your question.
RedundancyExpert - 10-Jul-17 @ 12:43 PM
Can i work voluntarily - unpaid for a probation period until my redundancy notice is terminated without loosing my redundancy payment. Thanks TAZ
TAZ - 9-Jul-17 @ 10:49 PM
I am currently on redundancy notice in education with a termination date of August 31 2017 along with a redundancy payment. I have been offered a job starting as soon as possible not with education but with the NHS. Will this affect my redundancy payment. Any advice, support or guidance. Thanks TAZ
TAZ - 9-Jul-17 @ 10:45 PM
I was made redundant from a school job on the 31st May and understand that if I start any new job before my 4 weeks is up I would have to pay back my redundancy pay but after this my pay is safe.What I need to know is, if after the 4 weeks, if I get a new job in another school, would I have to pay this back?I know there is legislation regarding all this but don't understand it if I'm honest.
Annie - 19-Jun-17 @ 11:05 AM
I have been on sick leave for 5 months and during that period I accepted another job to start in September, intending to resign from my previous job. I was then offered the opportunity to take voluntary redundancy.I am currently under the one month period, which ends at the end of June. So far, so good. However, I have now been offered a better job by my new employer, again to start in September. At present tnis is a provisional offer subject to employment checks.When I signed my redundancy letter I agreed to inform my current employer if I recieved and accepted any employment offers or took up a job within the notice period or for 4 weeks after I recieve my redundancy. To be clear, I accepted the first job before the redundancy offer, and have not had a firm offer for the second. I if I accept the second job, is my redundancy now at risk? I will not be taking up the position for at least 3 months after receiving my redundancy. My current job is subject to the Redundancy Order Modification, but my new job isn't.
hrcnow - 12-Jun-17 @ 10:08 AM
HiI have been told that they are closing my office and moving to another area a have been told we are to be made redundant, if there is any alternative jobs rollsshould they have told me I have been given one of them or should I have applied for them of my own back even if I did not want to, could this stop my redunancypay as they did not offer me alterative roll
Suzey - 26-May-17 @ 8:59 PM
How long will it take to receive redundancy pay if the company you worked for went into administration?
Markyboy - 5-May-17 @ 12:09 PM
Zuby - Your Question:
What if I refuse the offer to work in same company?? Then can I claim redundancy pay or not?? If they offer me the same job role which I currently have in the same company then can I just refuse it by saying no I donot want to accept the same job role offer in same company and I want redundancy money. Please kindly reply. Thanks.

Our Response:
If it is reasonable for you to refuse a ‘suitable’ alternative role you will receive a statutory redundancy payment. You will not be due a redundancy payment if you 'unreasonably' refuse a suitable alternative job offer. You can see more via the link here which will answer your question in full.
RedundancyExpert - 4-May-17 @ 12:05 PM
What if I refuse the offer to work in same company?? Then can I claim redundancy pay or not?? If they offer me the same job role which I currently have in the same company then can I just refuse it by saying no I donot want to accept the same job roleoffer in same company and I want redundancy money. Please kindly reply. Thanks.
Zuby - 3-May-17 @ 3:39 PM
Zuby - Your Question:
I am going through consultation meeting. My company is going to reduce staff and I am in risk of redundancy. They have some vacancies here at same company about similar role to what I have but they say if I apply for role in same company I need to learn new things and be multi skilled. They also have vacancies for us in same company but different location. My question is can I claim redundancy money if they offer me job role at same company where I work currently??? I would prefer take redundancy money. Please kindly guide me. Thanks.

Our Response:
You cannot accept another job within your company and redundancy money simultaneously. You would have to accept either one or the other.
RedundancyExpert - 2-May-17 @ 1:41 PM
I am going through consultation meeting. My company is going to reduce staff and I am in risk of redundancy. They have some vacancies here at same company about similar role to what I have but they say if I apply for role in same company I need to learn new things and be multi skilled. They also have vacancies for us in same company but different location. My question is can I claim redundancy money if they offer me job role at same company where I work currently??? I would prefer take redundancy money. Please kindly guide me. Thanks.
Zuby - 1-May-17 @ 11:13 PM
@Hayley - it's the job not the person who is made redundant - but the job. If you are offered another job within your company that makes up the lost job/hours, then perhaps your company has a point. This doesn't sound right to me - ring Acas to make sure. Libby.
ERF - 25-Apr-17 @ 11:35 AM
I currently have two separate jobs within the same workplace. One of the job roles is becoming redundant but I been told that I am not entitled to redundancy pay as I have another job within the company. Is this accurate, I have held this job for 15 years.
Hayley - 24-Apr-17 @ 2:45 PM
We've been through consultation and I was then given redundancy notice as there was no other jobs available... My employment ends on 31st March, unexpectedly a vacancy has arisen and I've been told that they are planning on asking if I want it, as I'd already gone through consultation and been given notice, am I still entitled to my redundancy pay, if I start the new post in a different department once my r notice expires?
Blondie - 17-Mar-17 @ 10:57 PM
Debbiedoo - Your Question:
I'm in a redundancy consultation period and although they have offered me another position within the company, do I still get my redundancy pay

Our Response:
If a suitable job is made available within your company and you decide to take it, you will not be entitled to a redundancy payment.
RedundancyExpert - 13-Mar-17 @ 2:09 PM
I'm in a redundancy consultation period and although they have offered me another position within the company, do I still get my redundancy pay
Debbiedoo - 12-Mar-17 @ 6:17 PM
Marty - Your Question:
I'm being made redundant on 6th November, can I start a new job straight away and still recieve my redundancy ? Or how long do I have to wait to get the full amount and be able to work ?

Our Response:
Much depends upon the terms of your redundancy which should be outlined in your consultation period. As a rule there are no restrictions on you taking up employment once you have been made redundant, unless your employer has previously specified otherwise.
RedundancyExpert - 15-Sep-16 @ 10:38 AM
I'm being made redundant on 6th November, can I start a new job straight away and still recieve my redundancy ? Or how long do i have to wait to get the full amount and be able to work ?
Marty - 14-Sep-16 @ 12:55 PM
I am currently in a redundancy consultation period with my permanent part-time job.There is the possibility I will be offered a temporary contract within the same company (to cover maternity). Will I still get a redundancy payment?
Looeezy - 16-Jul-16 @ 10:49 AM
I am being made redundant on 31st July. The council I work for are trying to redeploy employees. I have found a new job in a private company to start on. 8th august. Will this affect my redundancy pay?
Carol - 15-Jun-16 @ 5:47 PM
tony - Your Question:
MY firm as gone into solvency and l went into work on the Monday 8am and was asked to go home at 9 30am, if l get another jab will l loose any redundancy pay that l am entitled to.

Our Response:
If your company is already insolvent, then you are free to look fo and take another job, please see link: Your rights if your employer is insolvent, here. I hope this helps.
RedundancyExpert - 15-Mar-16 @ 2:44 PM
MY firm as gone into solvency and l went into work on the Monday 8am and was asked to go home at 9 30am, if l get another jab will l loose any redundancy pay that l am entitled to.
tony - 14-Mar-16 @ 9:38 PM
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