Redundancy is a form of dismissal, and is a potentially fair reason for your employer to dismiss you. If there is not a true redundancy situation you may have an unfair dismissal claim.
There must be a genuine redundancy situation and there are 3 possible reasons how your job no longer exists, examples being;
- Your employer is needing to reduce the workforce, maybe through a reduction in trade or in introduction of a more efficient working methods. This might be described as a ‘job redundancy’.
- The business no longer exists – it may simply have just ceased trading or have been insolvent for instance. This might be described a’whole business redundancy’.
- Finally, there may be a situation where the place where you work closes but the business carries on trading. This might occur where a chain of shops exists and your branch closes. This might be described as a ‘work place redundancy’.
In the whole business closing situation there are no jobs available to transfer to so you should receive either statutory or contractual notice, which ever is the greatest and a redundancy payment if you are eligible. (To be eligible for a statutory redundancy payment you must have worked for your employer continuously for 2 years). Sometimes enhanced redundancy payments are made by your employer.
In both job and work place redundancy situations you have the right not to be unfairly selected for redundancy. In such a situation you might have a case for unfair dismissal.
If you feel you have been unfairly selected for redundancy then contact us immediately as there are strict time limits for bringing an unfair dismissal claim.
The following is a brief guide for you to assess the fairness of your selection.
Your employer should have consulted with before making you redundant giving you information on: why redundancies are necessary and if there are any alternatives to making you redundant. This consultation can be you in person or as a group.
If your employer intends to make 20 or more employees redundant then the consultation should be over a period of 90 days or less.
Consultation should begin in good time and must begin at least:
- 30 days before the first dismissal takes effect, if 20 to 99 employees are to be made redundant at one establishment over a period of 90 days or less
- 45 days before the first dismissal takes effect, if 100 or more employees are to be made redundant at one establishment over a period of 90 days or less.
You, should be provided with the following if you are in the ‘pool’ of those that may be made redundant.
Your employer should consult with you about the selection criteria they will use. There is no set criteria they must use, but it must not be arbitrary but objective, fair and consistent. If this procedure is not carried correctly you may have an unfair dismissal case.
Examples of such criteria are:
Suitable alternative jobs
If you are selected for redundancy following an assessment, your employer should look to see if there are any suitable alternative roles before making you redundant.
If you are offered a suitable alternative job and you decline to take it then you may lose your entitlement to a redundancy payment.
Whether a job is suitable depends on:
If you are unsure about the suitability of the job you have the right to a 4 week trial period.
The 4 week period could be extended if you need training. Any extension must be agreed in writing before the trial period starts.
Tell your employer during the trial period if you decide the new job isn’t suitable. This won’t affect your employment rights, including your right to statutory redundancy pay.
You’ll lose your right to claim statutory redundancy pay if you don’t give notice within the 4 week trial period.
If you are selected for redundancy you must be given at least the statutory notice period before your employment ends, which is;
- at least one week of notice if the employee has been employed between one month and two years
- one week of notice for each year of employment between two years and 12 years
- 12 weeks of notice for someone who has been employed for 12 or more years.
Right of appeal of your Redundancy
You should be told of your right to appeal the decision to make you redundant. You may have been unfairly selected for redundancy and able to claim unfair dismissal.
Statutory Redundancy payments
Employees may be entitled to redundancy payments if they have been continuously employed for at least 2 years. If there is no contractually enhanced pay arrangement, employees with at least two years of continuous employment get a statutory redundancy pay of:
Employees can only count a maximum of 20 years of service and the ‘weekly pay’ is subject to an upper limit. The statutory redundancy payment is currently capped at £508.
If you feel your redundancy is unfair call us today, we are experienced redundancy solicitors.