What is redundancy and what are my legal rights?
Redundancy is when an individual is dismissed from their job, as a result of the Employer needing to reduce the workforce. The following are a few reasons why an Employer would make you redundant:
- The job you were employed for no longer exists
- The need to reduce costs resulting in staff numbers being reduced
- The business is relocating or closing down
- New technology or a new system has made your job unnecessary
What are my rights if I am made redundant?
If you are made redundant, your employer has legal obligations and responsibilities. Initially, your employer should consider alternatives to making you redundant and it is imperative that you know your rights if faced with redundancy.
Individual or Collective Redundancy
If your employer is making fewer than 20 employees redundant in one establishment, it is an individual redundancy. If your employer is making 20 or more employees redundant in on establishment within a 90-day period, it is a collective redundancy.
Collect redundancies generally occur when there is a:
- Business or building closure, meaning your employer no longer needs as many employees
- Reorganisation or reallocation of work of relocation of work
Your right to consultation
Employers should always consult with you before making you redundant which will normally involve: –
- Speaking to you directly about why you have bene selected
- Looking at any alternatives to redundancy
- Applying dispute resolution procedures when required
If any of the above are not provided, your redundancy may be considered as ‘Unfair Dismissal’.
Your rights in redundancy
Collective redundancies
If your employer is making collective redundancies, they have a responsibility to consult with the employees’ representatives. If your employer does not consult the representatives, you may be able entitled to make an Industrial Tribunal claim which provides payment of up to 90 day’s pay.
Redundancy selections and notice periods
Your employer must use a fair and objective procedure when selecting people to make redundant. It should be evidence based rather than your employer just deciding who they want to make redundant. It is not considered redundancy if your employer immediately takes on a direct replacement for you, but if your employer is recruiting more workers for a different kind of job position within the workplace or in another location then your employer is not in breach of any kind.
If your employer bases your redundancy selection on an unfair reason, you may be able to make a claim to an Industrial Tribunal for unfair dismissal. If your employer is making you redundant, they should try to offer you suitable alternative employment within their organisation or an associated company. Your employer should consider any alternatives to making you redundant.
Redundancy pay
If you are entitled to statutory redundancy pay the calculation is based on:
- How long you have been continuously employed
- Your age
- Your weekly pay, up to a certain limit (£535 current maximum)
If you are a member of a trade union, you can get help, advice and support from them.
If you have doubts about the way your employer may have calculated your statutory redundancy pay you can call the Redundancy Payments Helpline on 0300 123 1100 or email them on redundancypaymentsonline@insolveng.gov.uk
Next Step
If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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