Areas of Law / Employment

Two months ago my wife was told that all jobs were being regraded, which would mean a 20 per cent pay cut. Management said if this was unacceptable they would be offered redundancy. However they keep delaying the decision about when redundancy will be available; it appears the company is hoping that staff will find other jobs so it won’t have to pay out. What’s the position on this?

It’s a common tactic: if employees leave of their own accord it means the burden of redundancy payouts will be that much lighter. I take it your wife hasn’t had a clear offer of redundancy which she has been able to accept in writing. In that case no contract exists and the firm isn’t as yet committed to paying her redundancy compensation. However they can’t cut her wages in the meantime either.

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