Fair and reasonable process
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.
Those employees who are at risk of being made redundant should be given notice of this. 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 not less than 30 days.
Where the employer proposes to make 100 or more employees redundant, the consultation period must be not less than 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.
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 2 years or more.
The employee should first check their contract of employment to check 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”.
Statutory redundancy payments
- 1.5 weeks gross pay for each complete year of continues employment in which the employee was aged 41 or over
- 1 weeks 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
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 an employee 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.
Please complete the enquiry form or telephone us on 0203 816 9302 and we will be happy to discuss your options and guide you through the process.
Unfair dismissal - redundancy
An employer can 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.
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. 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 required by the company. The claimant received a 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 experts employment law experts on 0203 816 9302.