Employees Redundancy Support
A redundancy arises when an employee is dismissed because they are no longer required to undertake their role, for example, the job no longer exists.
I have been told that my job is at risk of redundancy?
Being informed that your job is at risk of redundancy can be extremely stressful but it does not necessarily follow that you will be made redundant. Your employer should identify an appropriate pool of those potentially at risk of redundancy before commencing a consultation process.
Can I volunteer for redundancy?
Your employer may invite applications for voluntary redundancy, however, it may refuse to accept your request. Volunteering for redundancy may avoid the need to invoke the full consultation process if the right number of individuals apply and their requests are accepted.
Your employer may consider offering a more enhanced package as an incentive for volunteers. If this happens, it is likely that your employer will ask you to enter into a Settlement Agreement. This is a confidential document that will prevent you from pursuing your employment rights in return for a financial settlement. It is a requirement that you seek independent legal advice where you are issued with a Settlement Agreement and usual for your employer to make a contribution towards legal fees, on the assumption that you enter into it.
What will the consultation process involve?
Your employer should provide an overview of what to expect during the redundancy consultation process. For many, it can be a daunting experience and so communication is very important. The consultation should be fair and thorough, for example, what the selection criteria is and whether there are any other suitable alternative positions available. Where more than 20 employees are at risk of redundancy, collective consultation obligations will be in place rather than on an individual basis.
What are my redundancy entitlements?
You will be entitled to a statutory redundancy payment where you have two or more years’ service. Your entitlement will be calculated by reference to your age, length of service (capped at 20 years) and gross weekly pay which is capped and reviewed annually. It could be that your employer operates a more generous provision for an enhanced redundancy payment. You should also be entitled to other contractual entitlements, for example, accrued untaken annual leave.
What if I do not agree with my redundancy?
You should be allowed the right to appeal the decision. If you are still not happy and provided that you have sufficient service, you might have grounds to pursue a claim of unfair dismissal at an employment tribunal in addition to any other relevant claims. There are strict timeframes for issuing claims.