Facing redundancy can be daunting. The procedure of redundancy is important to understand at the outset. Our expert employment lawyers list their top legal tips for dealing with redundancy and ensuring that your rights and interests are protected during this difficult time. Please note, you must have at least 2 years of continuous service as an employee to be eligible for redundancy payment and make an unfair dismissal claim. See our article on unfair dismissal under 2-years service for more information.
At Toner Legal, we specialise in employment law, representing employees who need help and advice across a range of issues, including redundancy. If you are concerned that your employer might not have handled the redundancy process correctly or you feel that you may have been unfairly selected for redundancy, ring to speak to one of our expert redundancy lawyers. It makes sense to ensure the procedure of redundancy was fair and to understand how you can make the most of what can often be a bad situation.
1. Procedure of redundancy – Check your employer has followed the correct process
Following the correct procedure of redundancy can make the difference between a fair and unfair dismissal. If you have been told that you are at risk of redundancy, you should be consulted. If you are in a group of 20 or more individuals being made redundant, the consultation may occur with a representative. There is no defined procedure for redundancy, but an employer is usually expected to warn you that your position is at risk of redundancy, carry out a meaningful consultation, and consider alternatives to redundancy.
Your employer should explain why you are being made redundant, for example, if your role is no longer needed because there is less work available. They should also explain the steps that will be followed in the redundancy process. These steps may be set out in your employment contract or in an employee handbook. If they are not, your employer can follow the Acas guidelines.
You should also be told:
- How people will be selected for redundancy
- A timescale for the process
- A note of the meetings that you are entitled to go to
- How you can appeal the decision if you are made redundant
2. Tell your employer if you think redundancy can be avoided
Your employer has a duty to consider whether there are any alternatives to redundancy. As an employee, you may have a different perspective and be able to come up with ideas to avoid the need to reduce the workforce. This can be done during the consultation period, which is one of the key purposes of the consultation meetings. If an employer decides to make someone redundant before the consultation process, you may be able to argue the redundancy procedure was unfair.
For example, maybe you could train to work in a different department, or your employer could end overtime or offer flexible working.
If suitable alternative employment is available, this option should be considered, but generally, your employer is entitled to make you formally interview for such positions.
3. Check that the redundancy selection process was fair
Your employer must ensure that the redundancy selection process is fair. In choosing those to dismiss, an employer should use objective and measurable criteria.
As well as the employees whose roles are no longer needed, those whose roles could be filled by those no longer needed should also be included in the pool.
Examples of redundancy criteria include:
- Performance
- Skills and experience
- Attendance record
- Disciplinary record
Scores can be awarded for each point to arrive at an overall score.
It is automatically unfair to select someone on the basis of certain characteristics, such as age, disability, gender or maternity.
4. Check you have been given the right amount of notice pay
If your employment is terminated, you are entitled to notice of redundancy. Your entitlement may be in your employment contract; otherwise, the statutory minimum is:
- If you have worked for your employer for between one month and two years, one week’s notice
- If you have worked for them for between two and twelve years, one week’s notice for each year you have been employed
- If you have worked for them for more than twelve years, twelve weeks’ notice
5. Check you will be receiving all the pay you are entitled to
You should ensure that your employer will be giving you all the pay to which you are entitled. This includes:
- Statutory redundancy pay of a minimum of:
- Half a week’s pay for each full year you worked while under 22
- One week’s pay for each full year you were worked aged over 22 and under 41
- One and a half week’s pay for each full year you were 41 or older, to a maximum of 20 years
- Pay during your notice period, including if your employer does not require you to work this
- Pay for any holiday you have accrued but not taken
You should check your employment contract to see whether it provides for you to be paid more than the statutory minimum redundancy pay.
Average pay is calculated by looking at the average amount you have earned each week in the twelve weeks before the date you were given notice. It should include any regular payments you receive under the terms of your contract, such as overtime, bonuses and commission.
6. Take the time off you need to attend job interviews
If you have worked for your employer for two years by the date on which your notice of redundancy expires, you are entitled to take a reasonable amount of time off during working hours to search for a new job, attend job interviews or arrange training.
7. If your redundancy is voluntary, negotiate the best possible deal
Employers often offer better terms to employees who are prepared to take voluntary redundancy. If you are offered a settlement agreement, we can check this on your behalf to ensure the terms are acceptable. We can also negotiate your settlement agreement to try and improve the deal where necessary. For example, we can work to agree on the terms of the reference to be provided by your employer to future potential employers.
You must take independent legal advice before signing a settlement agreement. Your employer will generally pay some or all of the legal costs.
For more information, see our settlement agreement page.
Contact our employment lawyers for redundancy
If you are facing redundancy and have concerns about how you have been selected or your employer’s redundancy process, contact us today. The above are some tips to get you off to the right start, but they are not to be substituted for taking professional advice. If you think you have been treated unfairly, then check with a professional, who may be able to secure you financial compensation.
Disclaimer
This blog is for information purposes only. Nothing should be relied upon as a substitute for legal advice and nothing written should be construed as legal advice or perceived as creating a lawyer-client relationship.