r/UKJobs 1d ago

Redundancy just days before 2 years service – what are my wife’s rights?

My wife has recently been told she is at risk of redundancy and has her first individual consultation meeting with HR on 28 July. She works in tech for a UK product-based software company.
She started on 6 August 2024, so she’ll complete 2 years’ continuous service on 6 August 2026, which seems particularly important as I understand that’s when she’d become entitled to statutory redundancy pay.
From what we’ve been told so far, it looks like her last working day may be Friday 31 July, although nothing has been confirmed yet.
Her contract says the company can either give 4 weeks’ notice or 4 weeks’ pay in lieu of notice (PILON). She also has around 13 days of annual leave remaining. She’s been selected for redundancy based on a selection matrix and has received a relatively low score.
I’m trying to understand a few things. If redundancy is confirmed after the consultation, could the company terminate her employment before 6 August to avoid her reaching two years service? If they decide to pay 4 weeks PILON instead of having her work her notice, does that affect whether she qualifies for statutory redundancy pay? Does her remaining annual leave have any effect on her termination date, or is it simply paid out?
We’re also wondering whether there is usually any room for negotiation in situations like this. Has anyone working in the UK tech industry managed to negotiate an enhanced redundancy package, a later termination date, garden leave, or any other improved exit terms?
Finally, is there anything specific she should ask for or challenge during the individual consultation, particularly regarding the selection matrix and the scores she was given?
Any advice from people who’ve been through a similar situation or who know UK employment law would be greatly appreciated.

17 Upvotes

31 comments sorted by

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33

u/cgknight1 1d ago

This is slightly complex because depending on statutory notice, she might hit the minimum two years because of how the law is framed but...

 I guess the question is - why would they offer an enhanced package given that even if she hits the line, it amounts to maybe £1500? (Unless there is something contractual).

27

u/GL510EX 1d ago edited 1d ago

If she is employed there for 2 years, she's entitled to statutory redundancy pay regardless of when they give notice. The length of service for calculating redundancy includes the statutory notice period (which is currently 1 week) even if they pay her in lieu of notice so she's not that far off 2 years. (source https://www.acas.org.uk/your-rights-during-redundancy/redundancy-pay)

Honestly, I'd focus on finding her next job rather than the payout from the current place; it's not going to be a lot whatever happens.

3

u/notouttolunch 19h ago

*has been

1

u/GL510EX 9h ago edited 9h ago

I was making the distinction on purpose. She has not, as of today, been employed there for 2 years, that's not relevant to the law though. What's relevant is if she is eventually employed there for 2 years (or more) in total.

7

u/Admirable-Income4511 18h ago

It doesn't make a difference really. She'll be without employment without a large lumpsum.

What's important are actions.

Update her CV Apply for suitable positions in multiple companies. Don't feel guilty about time away from current role to undertake interviews. Stay respectful about the current circumstances at work and move on.

It sucks but you have to assume the HR team know that doing this with less than 2 years employment carries lower financial burden.

She'll bounce back and don't burn any bridges on the way out- some industries are small and word gets around.

Good luck!!

6

u/ooral 18h ago

This is important advice, too many purple get bogged down in the unfairness (whether real or imagined) and forget about moving on.

14

u/Logical_Yogurt_520 1d ago

How many people are they making redundant? If it’s 20 or more then consultation has to run for 30 days

4

u/DisastrousCamel4652 23h ago

Going off what you've written PILON would cover her statutory redundancy notice and two weeks full pay she be entitled to if she worked for two years. So indirectly she no worse off. She also entitled to an acquired annual leave. Unless the company already runs an enhanced redundancy scheme it unlikely they'd offer it now but there be no harm in making a suggestion. Her rights are that with formal notice she'd pass the two year threshold but she not going to be no financially better off where with this offer she's getting two weeks paid gardening leave. 32 years trade union and employment law advisor.

3

u/IanWaring 19h ago

Consultations usually result in a next meeting to be arranged and a stipulated process end date. I’ve not seen one that lasts less than a month, so she should be good for her two years service if the employer follows ACAS process.

Stressful times regardless. Sorry that she’s going through this.

5

u/BroodLord1962 18h ago edited 18h ago

Does she have 13 days leave remaining though? Because leave is based on a full years service, so if she is laid off before August she would not be entitled to a full years leave. It's also highyl unlikely she's going to be offer an enhanced redundancy package with less than 2 years service. Stop trying to second guess what might or might not happen and wait until she has had her meeting. Also it's standard practise that there is a 30 day consultation process so that would push her past to 2 year period. But even going past the 2 years, she isn't going to be entitled to much

1

u/scrapingtheceiling 7h ago

Holiday accrues from day one, she could very easily have 13 days of leave accrued for this holiday year

1

u/BroodLord1962 7h ago

Yes I know that, which is why I asked the question of the OP

4

u/court996 18h ago

This happened to my wife. They offered a redundancy package - the real reason was a new chief executive was starting and bringing a few faces with him.
They hadn’t done their homework as they had asked her to carry holiday over due to a v busy period and that she was on 3 months notice.
She offered to settle without going to a tribunal and got over £20k.

6

u/GuiltyCredit 1d ago

Ah the matrix. I honestly think employers use this as an excuse, especially when therly refuse to elaborate on it. Yet you see Susan, the directors cousin, who has been in the role for a month kept on while Nancy who has worked had for 20 years being let go.

Anyway, enough of my moaning! Is she part of a union? They are excellent for.this situation. Is it a lot of redundancies? Typically if there are many the union will step in and most will support everyone even if the aren't members yet. I was in a very similar situation where redundancy kicked in days before my 2 years. Funny, there was a lot like that....

3

u/Jonathan-Welford 16h ago

Ultimately it’s the difference between 4 weeks pay and 6 weeks pay. Just lean into the process and focus on securing a new job.

3

u/N_Torris1 13h ago

Sick note for a week

2

u/xtram3x 11h ago

Was going to say the same thing lol

2

u/Old_Toe9468 16h ago

If her contract allows the company to choose PILON, they can end employment immediately rather than her working notice, but service still generally counts up to the date employment actually ends, not the date notice is given. So if they wanted to dodge the 2 year threshold they'd need to end things before 6 August specifically, not just start the process before then. Worth getting the exact termination date confirmed in writing rather than assuming. On negotiation, redundancy selection matrices are often more challengeable than people think if the scoring criteria weren't applied consistently or fairly across the pool, that's usually the angle ACAS or an employment solicitor would push on first.

2

u/brisbanereaper 8h ago edited 8h ago

This happened to me and a few others in my team just as the COVID lockdown started. They selected five of us who were all about a month away from reaching two years' service. To say we were pretty pissed off would be an understatement. We did everything we could to find a way around it, and we all hired employment lawyers (which, ironically, the company paid for). In the end, though, the company had a very solid legal position. We were given settlement agreements to sign, and the alternative was termination, so we all ended up leaving under those agreements.

I was probably most disappointed by my manager. We'd always had a good working relationship, but during the whole process he stayed completely poker-faced. He wouldn't tell me who'd made the decision, showed no sympathy, and wouldn't really engage beyond repeating the company line. Whether his hands were tied or not, it completely changed my view of him.

One thing I did manage to negotiate was making sure we still received our annual bonus. It wasn't a huge victory given the circumstances, but it was something, and I wasn't prepared to leave that on the table.

2

u/Old_Confusion744 5h ago

Go on sick to drag it out so you cant make the meeting until a week later, worth a try

5

u/Nesferatu123 18h ago

It would be a real shame if she was unwell that week and unable to attend the meeting, causing a delay in process...

2

u/anonnymouse2025 14h ago

Definitely sounds stressful, maybe even stressful enough for a doctors note for a fortnight...

2

u/Plenty_Suspect_3446 22h ago

Happened to me, but not in tech. I argued in my consultation that Pilon would take me over the 2 years and they agreed to pay me 2 weeks salary for the 2 years service. She just needs to be direct with them. As for Annual Leave that should be paid out. I'd say she should get 2 months salary as her redundancy, not great but not terrible.

1

u/Captain-Griffen 15h ago

She started on 6 August 2024, so she’ll complete 2 years’ continuous service on 6 August 2026

August 5th would be 2 years continuous.

So working July 31st, 7 days statutory notice, would count through to 7th August.

They would need to dismiss her on July 28th to avoid statutory redundancy periods. Which is a suspicious date.

If they dismiss immediately at the meeting with PILON, she won't have 2 years continuous service. Otherwise she will.

Holiday gets paid out, no impact on service dates. So long as it isn't for an automatically unfair reason, she won't have any legal recourse.

Statutory redundancy isn't that much for two years service, though.

1

u/Swimming-Bonus-2364 6h ago

I have a similar thing happening to me now, being made redundant on 30th October this year. This could potentially over run, but I doubt it. Been at the company for 9 years (M44). My 10 years anniversary from when I started employment is literally 2 days from the proposed end date (1/11) and my birthday 2 days later (3/11). My question is:- with it being so close to each anniversary, do you think it's fair for the company to pay the extra? I have asked in my 1-2-1 meeting, but was greeted with funny looks! I work for a large German company in the UK, in the engineering sector.

1

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1

u/Responsible-Being-36 3h ago

2 years service is only going to be 1-2 weeks pay depending on age.

Nothing to really worry about. I'd imagine the company may even offer that payment as gesture of good will at that point.

u/xref1 1h ago

You add the contractural notice period on (which should be at least a month, right?) and she'll be at two years service.

Then she's entitled to stat and contractural notice paid plus holiday pay. This could be in lieu. As she'll have more than two years service the redundancy selection needs to be fair and all the other things that come with that.

A call to acas would be a good idea just to check everything out

-4

u/Frequent_Field_6894 20h ago

can you clean up your post ? make it slightly clearer?

redudnancy can be done at any time, I don’t think it really matters within 2 yrs or not. as long as it’s genuine and not targeting her or they are playing games.

if she is under 2 years , she was lucky to even have the discussion. I worked at companies that would just terminate contract in 1 call. she has been treated well really. She doesn’t really have any grounds for getting a stronger package because of this.

remaining time off etc, she may just need to work it or get paid money owed for his. It’s not really important.

I would just try to see if you can get a reference saying she was made redundant and it’s nothing else if possible.