Redundancy during Probationary Period

Hi there,
I have a couple of questions following being informed on 17 Feb that I am on 30 days consultation of redundancy. A few facts about my position;
1. I work for a FTSE 250 company.
2. I joined on 5 Jan 09, having been offered a position late Nov 08
3. On 8 Jan, I was advised in person by the MD that an announcement was due to come out on 11 Jan. Basically, my boss was being made redundant, along with some 55 others. I was told who my new line manager would be and that I was not affected by the redundancies.
4. My COE states I have a 6 month probation period, during which either side may give 1 months notice. After 6 months, Notice Period increases to 3 months from me and 6 months from them.

During my meeting on 17 Feb, continued poor trading conditions were cited as the reason to make me redundant. My role is a Project Manager and I was specifically told the projects I was working on were continuing and indeed they were looking for more.

In terms of Notice, I was advised I was entitled to 1 month, but that "morally" the MD would likely pay out 3 months [tbc at a further meeting scheduled for 26 Feb].

Given the above, the two questions I have are as follows;
1. My view on the purpose of a probationary period is that it serves for both sides to ensure they are right for each other in a business and personal context. This has never been an issue, my performance has not been called into question and my redundncy is simply to save a salary. Techincally, is it right therefore that I should only get 1 months pay and is there an argument to make that in fact I should get 6?

2. I have come to learn that there were indications in Nov and Dec 08 that there were signs of financial problems and talk of downsizing. This begs the question why did they take me on in the first place? Do I have any basis to make a legal/tribunal claim against the employer for effectively mis-managing my appointment when they knew there were issues. Appreciate this is the more subjective issue, but all thoughts appreciated.

Regards,
Chris

Thank you for your question Chris, although I am sorry to hear about your situation, particularly as you have just recently joined your organisation.

I'm a little uncertain whether your employer is using the probationary period as an excuse to dismiss or is following a redundancy procedure to terminate your employment. As you have said, there is work for project management roles and they are looking for more?

Employers often use trial periods to assess whether or not a person is suitable for the position. The probationary period allows an employer to monitor and appraise during the initial stages employment to ensure that the required standards of performance and conduct are being reached. If an employee turns out to be unsatisfactory during the probationary period, the employer can take the necessary steps to dismiss without waiting for the probationary period to come to an end. The employer is required by law to follow contractual disciplinary procedures prior to the dismissal and comply with the three-stage dismissal and disciplinary procedure. Contractual or statutory notice must also be given; whichever is the greater.

From your post it appears that your employer may have told you that you may be dismissed on the grounds of redundancy. If so, can you tell me if there is or has been any consultation with you. Consultation involves looking at ways of avoiding your redundancy and looking at alternative employment.

It would also be helpful if you can tell me what clauses are in your contract of employment to end the employment during the probation period?

If your employer dismisses you on the grounds of redundancy, then unless you have enhanced contractual redundancy pay, unfortunately you would only receive notice pay. Your employer has offered you 3 months notice pay which is an ex gratia sums over and above your contractual notice payment.

In answer to your question about claims, you normally require one year’s continuous service to be able to claim Unfair Dismissal.

Please let me know the points above and i will be able to help you further.

Thanks very much for your prompt reply.

You are right that I am being dismissed on the grounds of redundancy; there has not been any talk of performance issues/disciplinary etc.

In terms of 'am I being consulted' re alternatives, I think I am, but am not convinced the correct process is being followed. I have been advised verbally that I am effectively on 4 weeks consultation of my role being made redundant wef 17 Feb, but I have had nothing in writing. Mention was made of alternatives, but when I pushed on what these may be, I was told the MD wanted to keep his ideas 'close to his chest' for the time being. I have another meeting set up with the MD this Thursday so will see what revelations this brings.

Turning to my contract, I have a letter of appointment only at this stage. This headlines the probationary period, notice etc, but cross references to detailed T&C's. I have still not received these, but have requested them today.

From what you have said so far, it would appear I have very little to fall back on legally/contractually and a good exit would be 3 months pay tax free and hopefully onto the next job.

Regards
Chris