Redundancy

Is your employer planning to make you redundant? It is vitally important you are aware of your legal rights and understand your next steps. Our employment law solicitors can help.

If you have been informed that you are at risk of redundancy contact our employment law experts as soon as possible and we will support you through the process, step-by-step. Our team can assess whether the reasons for redundancy are valid, and also determine whether your employer is following the correct redundancy procedures.

It is vitally important that you are treated fairly throughout the procedure. If you feel like you are being discriminated against, or have any other grounds for a complaint, our friendly employment law team can assist you in a claim for unfair dismissal.

Talking to a specialist employment lawyer could save your job or ensure you receive all of your entitled redundancy pay. Speak to our Liverpool, Manchester, St Helens and North West redundancy solicitors today by calling 0800 046 9976 or by completing our enquiry form here.

 

What is redundancy?

Being made redundant isn’t the same as being sacked from a job. A redundancy can happen even if you haven’t done anything wrong. It should only happen, however, when a role is ceasing to exist, perhaps due to a downturn in business, a change of priorities for the business, or an acquisition.   

Redundancy occurs where your dismissal is:

  • Wholly or mainly attributable to the fact that your employer has ceased or intends to cease to carry on the business for the purposes of which you were employed, or in the place where you were employed; or
  • The requirements for employees to carry out work of a particular kind in the place where you were employed have ceased or diminished, or are expected to cease or diminish.

You have a number of rights if you are being made redundant, and your employer has an obligation to make sure you are treated fairly.

 

What is the Redundancy Process?

 Your employer must follow a strict process of redundancy and needs to consult with you throughout. If you have been employed for more than two years, you have a right to raise a claim for unfair dismissal if you believe this process has not been followed.

Those who are at risk of redundancy should be consulted with and given notice. The process has to explain:

  • how the employer will choose people for redundancy
  • how long the decision will take
  • what meetings you can go to and when
  • how you can appeal if you’re chosen for redundancy

Your employer has to meet with you individually at least once before they can tell you their final redundancy decision. At this meeting you should get to discuss:

  • why they need to make redundancies
  • why they’re considering you for redundancy
  • what other jobs are available
  • any questions you have about what happens next

If you believe your employer hasn’t followed the correct redundancy procedures, our employment law experts can help you file an unfair dismissal claim. Speak to one of our friendly team today.

 

Your right to a notice period

In your contract of employment there should be details about your notice period. A notice period is the amount of time between when your employer tells you that you will be made redundant and your last working day.

Redundancy laws state you are entitled to a minimum notice period of:

  • 12 weeks’ notice if employed for 12 years or more
  • At least one week’s notice if you have been employed between one month and two years
  • One week’s notice for each year if employed between two and 12 years

You can be offered pay in lieu of notice if your employer doesn’t want you to work your notice period. This would instead be a lump sum, which is taxable.

You may also be asked to serve out your redundancy away from work, with no lump sum. This is called “gardening leave” and it means, although you are not working, you are still legally employed and will receive your normally salary.

 

What are the redundancy payments?

Any employee that is at risk of being made redundant is entitled to a redundancy payment, providing they have been continuously employed for more than two years.

Statutory redundancy payments are payments set by the Government. For each full year you have worked for your employer, you get:

  • half a week’s pay for each full year you were under 22
  • one week’s pay for each full year you were 22 or older, but under 41
  • one and half week’s pay for each full year you were 41 or older

You won't pay any tax on your statutory redundancy pay.

 

Can I challenge my employer on my redundancy?

If only a certain percentage of the workforce is being made redundant then you have the right to question the basis on which you have been selected.

Employers should use objective factors when deciding who to make redundant like:

  • Disciplinary record
  • Standard of work performance
  • Skills or experience

It is against the law to select an employee for redundancy based off their:

  • Sex
  • Race
  • Age
  • Sexual orientation
  • Religion
  • Disability

If you believe your employer discriminated against you, we can assist you with an Unfair Dismissal claim. Get in touch to find out your next steps.

 

How can Smooth Commercial Law help?

Being told you are at risk of being made redundant can cause tension and stress. You may not know what your next steps are or who to turn to. Our friendly Employment Law team is on our hand to help guide you through the process, and ensure that your employer has acted fairly.

If your employer has informed you that you are at risk of redundancy contact our employment law experts as soon as possible. Our team can assess whether the reasons for redundancy are valid, and also determine whether your employer is following the correct redundancy procedures.

If you have any questions about redundancy, the process, and your legal rights, contact our experienced Liverpool, Manchester, St Helens and North West redundancy solicitors by calling 0800 046 9976 or by emailing sb@smooth-commercial-law.co.uk. You can also contact us through our enquiry form here.