Here at
TipTopJob, we have provided you with some helpful information with regards to redundancy, what your rights as an employee are, what you are entitled to and what you should expect when faced with the situation.
A redundancy situation arises when work of a particular kind at a particular site had ceased or diminished or will cease or diminish. It is an employer’s responsibility to make every effort to avoid redundancy. Reasons for redundancy include:
the need to reduce costs
the effect of changing working methods
the re-organisation of work functions.
Although redundancy can have an unsettling effect, if you are faced with the situation you must remain positive and remember that your skills and abilities can be used elsewhere, so do not panic!
EMPLOYERS RESPONSIBILITY
There is a legal requirement for your employer to consult all employees collectively if redundancies affect more than 20 employees. Minimum consultation periods are:
20 - 99 employees = 30 days
100 + employees = 90 days
If it affects less than 19 people, there is no legal requirement to consult employees of the situation.
Your company will decide who is to be made redundant on a number of fair and objective criteria, such as, performance and ability to learn and attendance, disciplinary record and length of service.
The selection of employees for redundancy will automatically be unfair if:
it is in breach of customary arrangement or agreed procedure unless there’s special reasons to depart from it
it is connected with trade union activity
it is discriminatory on sex, race or disability
it is related to Health and Safety matters, Working Time regulations or National Minimum Wage grievances
Employers are faced with minimum notice periods that you should note:
if you have worked at the company up to 1 month = no notice
if you have worked at the company for 1 month up to 2 years = 1 weeks notice
if you have worked at the company for 2 years or more = 1 weeks notice for each completed year of service up to a maximum of 12 weeks.
YOUR RIGHTS
You have the right to receive a letter confirming you are being dismissed for redundancy together with a financial statement identifying your entitlements to redundancy pay, notice and holiday pay (plus any other agreed compensation).
You also have the right to appeal against selection and to know the scores on it and how you compare with others. You must put your appeal in writing to a senior manager unconnected with the selection decision within 5 working days of receiving the redundancy letter.
You have a statutory right to be given a trial period of 4 weeks in alternative work and once this is up, it is deemed you have accepted the new employment. Alternatively, if you qualify for redundancy payment you must be given paid time off during the notice period to seek work, attend interviews or be trained to assist job searching.
REDUNDANCY PAY
To qualify for redundancy pay you must have served at least 2 years continuing employment and be aged between 20 and 64 years of age. It is based upon the length of continuous employment and gross average weekly wage and is calculated as follows:
for each completed year of service when aged 18-21 = ½ weeks pay
for each completed year of service when aged 22-40 = 1 weeks pay
for each completed year of service when aged 41-64 = 1½ weeks pay
The maximum per week each employee will receive is capped at £260 and if your pay varies then the average of the 12 weeks period to the date notice was given is taken. The maximum number of years to be taken into account in calculating redundancy pay is 20, and if you are over 64, the payable amount is reduced by 1/12 for each month that exceeds the day you turned 64.
If you are under an occupational pension scheme not more than 90 week after the dismissal, you may offset part of the pension payment against the redundancy payment.
Employers can pay more than the statutory maximum if they wish and redundancy payments are not taxable unless they are above £30,000. You are also entitled to any outstanding holiday pay.
If you receive a redundancy notice, before accepting any terms, make sure you seek professional advice first. Either contact your local citizens advice bureau or an employment lawyer to seek professional advice.
Alternatively, seek more professional advice about redundancy by taking this link to campactlaw.
If you are faced with a redundancy situation then, start looking for your new job today and register with TipTopJob!
