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Offered Alternative Job, Will I Still Get Redundancy Money?

By: Emma Eilbeck BA (hons) - Updated: 30 Apr 2021 | 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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My wife has worked in the restaurant industry for the same family business ( in various guises) for 10 years or so They have catering franchises at several venues. They terminated the franchise which she worked for on 31st Dec 2020 as they could not agree terms with the golf club who owned the premises. She had already been on furlough for some time up to this point. They have continued to pay her through the furlough scheme ever since (which I thought strange) with no mention or offer of redundancy ever being discussed. ( right up to present day) Now, with the lock down coming to an end, she has been offered a similar role in another restaurant owned by her employer's boyfriend. I am very suspicious that this is just a ploy to avoid having to pay her any redundancy package and that in a short while her new company boss will just get rid of her and claim she wasnt suitable. My wife is so trusting that she doesnt see this as a move and will do as they ask. I am concerned she will not get any of the money to which I think she is entitled. What is your view?
Doubter - 30-Apr-21 @ 4:25 AM
I have been made redundant and give a date of 31st of this month I worked an extra month for them. I have been offered a job to start on the 14th of next month will I loose my redundancy pay if I except it
Samsox - 25-Mar-21 @ 8:36 PM
have been made redundunt,had a call from company to start working in different roles in my notice period whichis 3 month,there is no agreement, just had a call ,and ask me to start within two days,nothing was in writing ,had no email explaining, this situation, I'm very confuse ,if take this opportunity, can lose my redundancy money do you think it good idea?
mustapha messaoudi - 18-Feb-21 @ 10:16 PM
Hi, My employer recently restructured and as part of that they offered up voluntary redundancy which would be about £40k so I opted in for VR. This was several weeks ago and today I received my redundancy agreement which has a clause which states that as at the date of the agreement (today) I basically cannot have a job offer or be in discussions likely to lead to a job offer. The company I will be joining is aware of me going through the VR process but want me to start in around 30-40 days. I have said I will accept the VR offer and then give them a start date and negotiate a leaving date with my current employer. "“...at the date of this Agreement you have not commenced employment*nor are you in discussions which are likely to lead to nor have you agreed to accept nor received any offer of employment notwithstanding that you have taken all reasonable steps to obtain such employment.” This very important piece of information was never communicated at any stage of the process and clearly anyone who has accepted their job will be ending will want to know they can secure further employment. So as a result I applied for and am now in receipt of a job offer (unsigned) which is due to start after the end of my notice period. Now worried that this will affect my settlement agreement (which is non-negotiable) and I will end up on statutory redundancy which is only £10k. One option would be to ignore the clause and assume it all goes through fine but is this a good plan? - Is this clause normal? - Is it unreasonable? - Should I ignore it and hope for the best? - Should I challenge it?
hunter123 - 18-Dec-20 @ 11:04 AM
My position at my company was made redundant at the end of September. I was given the opportunity to apply for a similar role, albeit with more responsibilities, and no pay increase. I have not found this job suitable for me, but certain responsibilities being completely new to me with zero training given. I now want to leave this job, and am currently in a 3-month probation period, due to end on 1st January. If I were to hand in my notice now, would I be eligible for the redundancy pay from my previous role?
Phil - 12-Dec-20 @ 12:29 PM
Am I allowed to accept a job with the prospect of startingimmediately after my redundancy notice ends
Justme - 11-Oct-20 @ 2:09 PM
All the staff were emailed last Friday to say the company has stopped trading,they were calling in the liquidators and they would be giving us a cn number in due course,so we can claim statutory redundancy,lieu of notice,holiday pay and unpaid wages,I really need money in to pay mortgage bills etc,I am thinking of going self employed ASAP,will I loose any of the above if I do this.Kind Regards
Gooner917 - 8-Oct-20 @ 1:36 PM
I was made redundant from my role and during consultation, offered an alternative role within another department, SATwhich I accepted. I am currently halfway through a 3 month trial period and have been offred a job by a different employer. Would I still be entitled to my redundancy pay? The alternative job with my current employer is nearly twice as many hours and less pay hourly.
lisa - 18-Sep-20 @ 6:09 AM
I was told i was being made redundant in june ( june 16th) and i had been with the company 10 years , so i was supposed to get 10 weeks notice , but on my letter i received through email it said my notice would finish on 7th september , which would make it 12 weeks .. so a week before my notice runs out , i get a call from my employer saying there is sufficient work , and i have been offered my job back on the previous terms i already had , does this mean i will lose my 10 years service and not get my redundancy ? Any help on this would be fantastic
Kieran - 1-Sep-20 @ 1:52 AM
I have been given a date for my job to end and I’m not entitled to any redundancy pay As I only worked at the store for 12 months, so just my holiday pay. I have found a new job who want me to start before this end date and I have been told I’m not required to work my notice. Am I still entitled to the months full pay and holiday from my old firm, also being paid by the new company for my work, so effectively getting two months wages ?
Dude - 29-Jul-20 @ 10:50 PM
If I'm being made redundant & on my notice period, but my work has put me back on furlough for my notice period. If I was to get another job within that period, would I lose my redundancy money or are my company obliged to still pay me it by law?
Foxy - 27-Jul-20 @ 2:19 PM
I’m part time working 2 full days and am being made redundant. My notice period is 12 weeks. Can I start another part time job within my notice period without it effecting any monies owed ?
Cookie Girl - 21-Jul-20 @ 8:14 PM
Hi, I am currently waiting to find out who will be getting made redundant (2 out of 12 welders are going) from my welding role at my company. They have let me know about an opening for 1 heat-shielder at the same company.If I am being made redundant but I got the heat-shielding job would I still get my redundancy payout considering its also a lower paying job. Much thanks!
Pin - 12-Jul-20 @ 10:39 PM
I have been made redundant 1st June, I have now been offered a job back in the company due to someone resigning to start 1st September. Do I get to keep my redundancy if I accept job.
Kat - 9-Jul-20 @ 8:59 AM
Hi I currently have two part time jobs with different employers. I have been given the option to take voluntary redundancy with one of them. Will I still qualify for redundancy even tho I already have another job? Thanks
Chaz - 26-Jun-20 @ 10:35 PM
Hi, i have been on furlough since April (Paid up to 30th June), my boss very sadly passed away with COVID and now the business is to close and I’m to be made redundant. The administration people have been called in to see to the business myself and the other members of staff have not had anything in writing. My question is can I start working for someone else or will it effect my redundancy? Thanks
Scatts - 25-Jun-20 @ 1:28 PM
Hi.I have been selected for potential redundancy.I will be talking to my employee representative within the next two weeks, then have a meeting w/c 4th July, when i will learn my fate.I'm fairly sure i'll be made redundant.Is it wise for me apply for another job, whilst i wait to hear the outcome?What actions would stop me from getting my redundancy money?
djesse - 23-Jun-20 @ 10:30 AM
My department has disbanded, and a lot of the staff have taken redundancy, I was not offered redundancy but accepted a new job within the company which is completely different to what I was told. I am totally stressed and do not want this position, I have been in training to 2 weeks and on the phones for a week, can I still take my redundancy. I very stressed and full of anxiety with this new job. Please can you help me.
Sha - 6-Mar-20 @ 10:10 AM
I was laid off recently and have now just had notice from liquidator company has gone bust. Have completed redundancy request online but now understand 12weeks notice pay I thought I would also get may be lost if I start a new job eg in 2 weeks!? Is this correct?
Dazza - 27-Nov-19 @ 11:57 PM
My boss is closing his business were I have worked for last 7.5 years he has built another premise and is going to lease it out he told us we can have job in new place but I don't want to go work for new business am I entitled to reduncey
Holly - 7-Oct-19 @ 4:48 PM
Hi I have been told by employer that my hours are being changed but I don’t want the hours I have been offered can I take redundancy I have 8 years
Buddy - 5-Sep-19 @ 11:03 AM
Hallo. I have question? If i am not become redudant yet, but i will soon? Can i start work for a new company as a self employer.? does it somehow affect the payment of money due overdue wages?
Adam - 3-Sep-19 @ 2:42 PM
I have been given my notification of dismissal which ends on the 23rd September. Am I entitled to receive my redundancy payout if I apply for a different position within the company, not having continuity of employment? If I start on the 24th? They have not offered suitable employment but have said I could apply for other roles.
Rebecca - 30-Aug-19 @ 9:37 PM
On the 8th July we was told that the business was closing at the endof the month (31st July). I straight away started looking for a new job, I start my new Job on the 5th august. However, mid between my 1st and 2nd interview with my new employer, it was announced that the business was now closing at the end of september. Am I still entitled to redundancy pay?
saz - 26-Jul-19 @ 6:28 AM
I’ve been made redundant and been given a a redundancy final notice and this has now been signed by myself and my employer. If I find a new job but line the start date up for after the end date am I at risk of loosing my pay out?
Becki - 22-Nov-18 @ 5:21 PM
Have been told business is being sold but, sale fell through but, hopefully going through very soon. Redundancy s indeed on cards and to keep 21st May in mind. Can't take alternative job offer due to location and public transport. I am now stuck waiting to see what is happening - what if sale has not gone through by 21st? Am already looking for another job but, will lose out if find and take one. What are my rights here? When does the definitive notice period begin for me to have any rights taking another job and, entitlement to my pay out? Is it legal to be told I'm being made redundant but, could be anytime from now till whenever?
Sarah - 8-May-18 @ 10:41 AM
i am currently in the process of being made redundant and my 3rd meeting at which i will receive my notice is the end of this week and my notice will finish at the end of December. i have applied for a job within the same company but a different area, the job is fixed term and not where i want to be and the start date will not be till the middle/end of January.if i am successful and offered this job will i still be entitled to my redundancy pay? I'm hoping so as i am concerned that i will be without a wage coming in for a month or so and cannot risk being without any income.
jess - 21-Nov-17 @ 12:25 PM
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
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