If you are facing redundancy, this can be a difficult and stressful time. Every employee has the right not to be unfairly dismissed, and if you have less than two years’ service you will have the right to notice or to be paid in lieu of notice and to received payment for accrued but untaken leave.

If you have two years or more service then you have enhanced rights on termination of employment depending on the amount of time you have been employed. These can include:

  • Redundancy pay
  • Notice period
  • Time off to look for a new job
  • Option to move into suitable alternative employment
  • Consultation with your employer

The Redundancy Process

An employer should follow a fair and reasonable redundancy process and should consult with employees appropriately. The process that the employer must follow is dependent on the number of employees who are at risk of redundancy.

If you have been employed with the company for two or more years, you have the right to raise an unfair dismissal claim if you feel the process followed when making you redundant was not fair.

The employer should consult with those employees who are at risk of redundancy. This should include informing them of the reason for the proposed redundancy and the method of selection that will be used to determine who will be made redundant.

If the employer is looking to make 20 or more employees redundant, they must hold a consultation period with the employees or trade union representatives for a minimum of 30 days. This is increased to 45 days if the number of employees that will be made redundant is 100 or more.

The employer should try to seek any suitable alternative roles for the employees at risk of redundancy. If the employee refuses a suitable alternative role, this may negate their entitlement to a redundancy payment.

The redundancy process should be outlined in the company’s staff handbook and should include:

  • How employees will be chosen
  • How long the decision will take
  • What meetings they can attend and when they will happen
  • How to appeal the redundancy process

Redundancy Payments

Where the employee has been employed continuously for two or more years and is chosen for redundancy, they will be entitled to a redundancy payment.

The employee will either receive a contractual redundancy payment which is outlined in the employees’ contract, or a statutory redundancy payment if it is not.

Statutory Redundancy Payments

Where the method for calculating a redundancy payment is not outlined in the employment contract, the payment is set by the government. This is currently as follows:

  • Half a weeks pay for each full year where you were under 22 years of age
  • One weeks pay for each full year you were 22 years of age or older, but under 41
  • One and a half weeks pay for each full year you were 41 or older.

The length of service is capped at 20 years. Your weekly pay is calculated as the average you earned per week over the 12 weeks before you received your redundancy notice.

If you were made redundant on or after 6 April 2021, your weekly pay is capped at £544. The maximum statutory redundancy pay you can get is £16,320.

If you believe that your position is still needed and that the redundancy situation is not genuine, you may have a case for unfair dismissal. This can also occur where the employer has not followed a fair procedure, such as there being an unfair element to the selection criteria or there was no consultation. Our highly experienced employment solicitors can advise you on whether you have a claim for unfair dismissal and the best course of action going forward.

If you would like advice on redundancies and the process, our specialist employment solicitors will be happy to discuss your case with you. We know this can be a difficult time for you and we are proud to offer a sensitive and personal service ensuring the best outcome for your situation.

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