What You Need To Know If You Are Facing Redundancy

If you are facing redundancy it may be an unsettling and stressful time, however it is important that you protect your interests and there are a few things that you need to know.

Redundancy happens when an employer needs to reduce their workforce. This can be due to many reasons, including insolvency, however there should always be a consultation with employees about why redundancies are taking place.

There will usually be a selection process for redundancies, unless your job is ceasing to exist due to a department closing down, or you are the only employee employed in one area of the operation.  It is important that the selection process is fair.  Fair selection processes include:

• asking for volunteers
• last in, first out (employees with the shortest length of service are selected first)
• staff appraisal scores, skills, qualifications & experience
• disciplinary records

You may be entitled to the following

Redundancy Pay (capped at £16,320 total, £544 a week for a maximum of 30 weeks, & 20 years. There is no statutory cap for Health and Safety and Whistleblowing cases)

• half a week’s pay for each full year you were under 22
• one week’s pay for each full year you were between 22 and over, up to 41
• one and half week’s pay for each full year you were 41 and older

Notice Period

The statutory minimum notice periods your employer must provide are:

• if employed between one month and 2 years: at least one weeks notice
• if employed between 2 and 12 years: one weeks notice for each year
• if employed for 12 years or more: 12 weeks notice

*your notice period may be more - check your contract of employment

The option to move into a different job

If a position is available that requires similar skills and offers similar pay, then your employer should offer you ‘suitable alternative employment’.

Time off to find a new job

If you have been continuously employed for at least two years you will have the right to paid time off (up to 40% of your week’s pay), to look for a new job.  You may be able to take additional unpaid time off as well.

In cases where the business is insolvent you can apply to the government for:

• outstanding payments including unpaid wages, overtime and commission
• holiday pay
• a redundancy payment
• money you would have earned working your notice period (‘statutory notice pay’)

Notes:

You may have a claim for unfair dismissal if your employer has a suitable alternative position and does not offer it to you.  We are happy to discuss your situation if you believe that this has been the case.

If you are offered a suitable alternative position and turn it down without good reason, you may lose any rights to statutory redundancy pay.

If you were employed by the business for over two years, and you and other employees affected by the redundancies were not consulted about your redundancy, or you think you have been selected for redundancy due to another reason that you believe is unfair, then you could have been ‘unfairly dismissed’, and we will be happy to advise you of options that may be available to you:

The information provided in this article is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes in the law that may invalidate this article.