Will taking a new job affect my redundancy pay?

I have just been made redundant as my employer has gone into administration. Another company sub-contracted work to my company which I worked on. This contract has now been given to another company. I have been asked to work for the new company on the same contract, on the same terms and salary that I was on. They used the words “they will honour my contract” which worries me. I have received my P45 already and am officially unemployed. If I take the new job would it affect my redundancy pay? Would or could it be seen as TUPE?

letter cubes spelling 'redundancy'


Administration and TUPE are both complex areas and without a more in-depth discussion and knowledge of your specific situation it is not easy to provide a firm view.

However, if you have been confirmed as redundant and received your P45, you are likely to remain eligible for your redundancy payment either from your employer if it is able to make the payment or from the Government through the National Insurance Fund (NIF) if not.  If this third-party company has offered you employment “on the same terms”, that could just mean that they value your knowledge and skills in the role and want to secure your agreement to join them by offering to honour the terms.

It seems to me unlikely to be a TUPE transfer in the scenario you describe, but that is not to say that it couldn’t be. I just don’t have enough information about the situation to be able to say for certain.  Your best course of action might be to simply ask the question of the other company – are they proposing a new contract of employment or is TUPE involved?  You might also be able to ask the administrators of your former employer that same question as they will know how the re-assignment of any contracts has been put in place, in addition to asking whether you will be receiving your redundancy payment from the company or the NIF, and what you need to do now, if anything.

If there is a suggestion that you aren’t due a redundancy payment, that could indicate that TUPE applies, in which case you should retain your continuity of service when you move to the other company and they are likely to have a duty to honour the terms of your employment.  If you aren’t receiving a redundancy payment and the other company says TUPE doesn’t apply, you should speak directly with a solicitor so that you can go over all the facts in more detail and obtain bespoke advice.

*Marie Horner is an experienced senior employment law specialist at ALT Legal in Wetherby.

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