An employer should follow a fair and reasonable process when it believes that employees may be made redundant and should consult with them appropriately. The process that an employer must follow depends on the number of employees who are at risk of redundancy.
Where you have been employed for 2 years or more, you have a right to raise a claim for unfair dismissal if you feel that a fair process has not been followed in making you redundant. However, there is no single set process to redundancy, the only rule is it has to be clear and fair. As mentioned above, there are some set rules when it comes to consultations and how many employees are being made redundant.
Those employees who are at risk of being made redundant should be consulted with and given notice. The employer must inform those affected of the reason for the proposed redundancies and the method of selection that will be used to decide which of those employees are to be made redundant.
Where the employer proposes to make 20 or more employees redundant, it must hold a consultation period with those employees or recognised trade union representatives for a minimum of 30 days.
Where the employer proposes to make 100 or more employees redundant, the consultation period must be a minimum of 45 days.
The employer must conduct a meaningful consultation and redundancy should be the last resort. The employer should make efforts to identify any suitable alternative roles for those employees at risk of redundancy. Equally, if an employee refused a suitable alternative role, this may negate his or her entitlement to a redundancy payment.
Typically, your company's redundancy process should be outlined in your contract or staff handbook. If it not, your employer has an obligation to ensure that you understand the process. A redundancy process should outline the following:
- How employees will be chosen for redundancy
- How long the decision will take
- What meetings you can go to and when they will be
- How to appeal the redundancy process
If the employer confirms that an employee is to be made redundant, the employee is entitled to a redundancy payment providing they have been continuously employed for two years or more.
The employee should first check their contract of employment to see whether there is an agreed method for calculating a redundancy payment. This is called a "contractual redundancy payment".
If the contract of employment is silent of redundancy payments, the employee will be entitled to a payment set by the Government. This is called a “statutory redundancy payment”.
What are statutory redundancy payments?
Statutory redundancy payments are payments set by the Government and are currently set as follows:
- 1.5 weeks gross pay for each complete year of continues employment in which the employee was aged 41 or over
- 1-week gross pay for each complete year of continues employment in which the employee was aged 22 or over
- 0.5 weeks gross pay for each complete year of continues employment for each earlier year
It is worth noting that there is a cap on how much statutory redundancy will pay out. In England and Wales, the current maximum (correct as of February 2020) is £15,750 regardless of your length of service and your salary level.
Please complete the enquiry form or telephone us on 01616 966 229 and we will be happy to discuss your options and guide you through the process.
Unfair dismissal – redundancy advice
An employer cannot unfairly dismiss an employee even when the employee has been dismissed on the grounds of redundancy.
This can occur where an employee does not believe that the redundancy situation was genuine and that their job is still required by the employer. This may also occur where the employer has followed an unfair procedure; i.e. there may have been an unfair element to the selection criteria. A dismissal by way of redundancy may also be unfair where the employer failed to properly consult the affected employees.
Other reasons where your redundancy could have been unfair include:
Your employer does not meet you individually or only meets you to tell you they are making you redundant (If you have worked for your current employer for two years or more)
- You have not been given enough information about the process
- The process was not followed as it should have been
- Your redundancy selection is a result of some form of discrimination (i.e. maternity, age, gender or race discrimination)
Redundancy law unfair – case study
The claimant had been employed by a company as a client relationship executive. The company restructured and the work performed by client relationship executives was reorganised and the company alleged, was removed. The claimant was made redundant as a result of this.
We assisted the claimant in issuing a claim for unfair dismissal on the basis that the work she was conducting was still being done by the company. The claimant received a substantial sum which compensated her for loss of earnings as a result of the dismissal.
If you feel you have been dismissed unfairly as part of a redundancy process contact our expert employment law solicitors on 01616 966 229 .
What should I do next?
If you would like advice regarding redundancy, our specialists and will be happy to discuss your case with you. We appreciate that this is often a difficult time for you, and we have a range of funding options available to help. In some circumstances, we may be able to offer a 'no win no fee arrangement' to you.
Redundancy advice FAQs
When can I be made redundant?
An employer may dismiss an employee on the grounds of redundancy. This typically happens in three scenarios:
- Where the employer’s business is closing entirely
- Where the place an employee works is to be relocated
- Where the specific work than an employee carries out is no longer required
How much redundancy am I entitled to?
How much redundancy you will be entitled to will depend on how long you have worked for your employer and the terms and conditions of your contract. Some organisations have enhanced redundancy payments while others will only offer statutory redundancy payments. Check your contract, staff handbook or speak to a union representative regarding your employer's redundancy policy and process.
How to appeal redundancy?
It may be possible for you to submit a redundancy appeal if you think you were unfairly selected or your employer did not follow a fair process. There is no set process to appeal for redundancy; each organisation may have its own appeals process or, if your employer does not have one, then you can write a redundancy appeal letter.
Once you have either sent the letter or discussed with your employer why you think your redundancy is unfair, the employer can accept or reject your appeal. Appealing your redundancy does not affect any of your redundancy rights.
If you are not satisfied with your employer’s decision, then you can take your claim to an employment tribunal. If you wish to challenge your employer, we recommend having an employment lawyer at your side; contact our expert redundancy solicitors today and we can help you determine if you have a case or guide you through the process. Contact us today.