What Is Redundancy?
The definition of redundancy is broken down into three main areas.
1. An employee may be made redundant due to the closure of the entire business.
2. An employee may be made redundant due to the closure of the branch or depot where they work. If available a suitable alternative should be offered and considered seriously.
3. An employee may be made redundant due to a genuine reduction in the workforce.
Selection For Redundancy
In making selections for redundancy an employer should act fairly. Selection criteria are often based on the employee’s experience, ability, skills and competencies in the role. However, they can also include information brought about from appraisal meetings or disciplinary action. An employer cannot use any reason based on discrimination in their process when making redundancy selections; these include age, sexual orientation, marital status, gender, race, disability, religious beliefs, trade union membership, maternity or paternity leave, pregnancy or whistleblowing. Selection based on any of these factors is breaking the law set out in the Equality Act 2010 and is liable to prosecution on grounds of unfair dismissal.
If you believe you have been made redundant by incorrect means or treated unfairly contact our unfair dismissal specialists on 0161 82 11 559 or contact us by clicking here. We will guide you of the best way to proceed in your unique situation and achieve the best possible outcome for your case.
If less than 20 employees are being made redundant at a similar time each employee should have an individual meeting to discuss the position. The meeting should include the reasons for redundancy, any alternatives and the procedure to follow before termination. If 20 or more employees are being made redundant, employees are permitted to have a representative consulting on their behalf. If any of the requirements aren’t followed correctly then employees may be entitled to claim for unfair dismissal.
Statutory Redundancy Pay
When making redundancies an employer is legally bound to award employees statutory redundancy pay to employees with more than two years continuous service. Qualifying employees not being paid the statutory redundancy payment or being made redundant through incorrect or unfair process may be entitled to claim an unfair dismissal or make a discrimination claim. A claim for redundancy pay must be made within 6 months and a claim for unfair dismissal or a form of employment discrimination must be made within 3 months of the employment ending.
Your employer must give you the following amount of minimum notice before your redundancy, unless your contract provides for a longer notice period.:
- Minimum of 1 week’s notice if you were employed between 1 month and 2 years
- Minimum of 1 week’s notice for each year you were employed for between 2 and 12 years service.
- 12 weeks’ notice for continual service of over 12 years.
As part of your notice you are entitled to reasonable time off work to search for new employment or to take part in training for another role. The amount of time you can take will depend on personal circumstance and your employer is entitled to only pay you 40% of your week’s earnings for this time.
Entitlement To Redundancy Pay
Employees facing redundancy are entitled to a statutory payment. This is a lump sum dependant on the following criteria:
- They have been made redundant.
- They have over 2 years continuous service.
- They worked as an employee.
- That there is no suitable alternate employment available from their employer. Employees will lose the right to statutory redundancy pay on the unreasonable refusal of suitable alternative employment. Validation of alternate employment must be offered before the termination of the previous position and must follow immediately or within 4 weeks of the cessation of the previous position. Employees have an option of a 4-week trial period for positions that are significantly different to their previous role. If an employee decides to refuse the alternate role within the trial period they are still entitled to redundancy pay. When assessing whether a job is suitable or if a refusal is unreasonable factors which may be considered are pay, location, work status, hours and schedules and also the employee’s domestic circumstances.
- There have been specific rules regarding lay-offs and short-time contracts. Contracts that cater for temporary lay-offs without pay or short-time placements with a reduction of pay are entitled to make a redundancy pay claim if laid off or placed on short-time for four consecutive weeks or for six weeks in a thirteen week period.
Statutory Redundancy Payment Amount
The amount awarded is calculable by the number of weeks earned multiplied by the lower of either their average weekly wage or £508.00.
The number of weeks earned depends on continuous employee service and age.
- Half a weeks pay for each complete year of service in which the employee was under the age of 22;
- A full weeks pay for each complete year of service in which the employee was aged between 22 and 40; and
- A week and a half’s pay for each complete year of service in which the employee was 41 or over.
The maximum number of years in service is capped at 20 given a maximum redundancy pay out of £15,240.00
Contractual Redundancy Pay
Some employers will draw up their own specific terms and conditions regarding the amounts payable to an employee in the case of redundancy that do not adhere to the laws set out for statutory redundancy pay. If you are being offered an employment contract outlining redundancy pay that doesn’t conform to the statutory regulations you should take expert legal advice to protect your rights.
Employment Solicitors Manchester are specialists in employment services and can guide you through every aspect of a new contract including fair treatment during redundancy and protecting your rights as an employee.
Making A Claim For Redundancy
As specialist redundancy solicitors we understand every aspect of your rights and entitlements and will help you achieve the best possible outcome in your unique situation.
You must make your application for a redundancy claim within 6 months of your termination. We can guide you through each step of the process and handle all legal aspects on your behalf.
If your employer doesn’t follow the correct protocols for redundancy then you maybe entitled to raise an Employment Tribunal claim to seek compensation in any areas of illegal or unfair treatment. Both employers and employees should consult specialist redundancy solicitors to make sure they are abiding by the fair processes set out by law.
Contact Employment Solicitors Manchester Now
We have specialist redundancy solicitors who will guide you through the best action to take in your unique situation.
You can call on 0161 82 11 559 or contact us by clicking here for an initial consultation regarding all of your redundancy concerns. We offer complete and full advice in easy to understand terms to help establish the most likely outcomes for your case in a relaxed and pressure free environment.
We understand how sensitive making a claim against your previous employer can be so our expertly trained staff deliver each of our services with empathy and understanding. It is entirely up to you whether you decide to pursue your claim or not. We’re here to help you make those important decisions backed by our years of experience and industry knowledge.