Offered Alternative Job, Will I Still Get Redundancy Money?

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.