Your employer has various legal responsibilities to treat you fairly and follow the correct process when making redundancies. So if you are facing being laid off, make sure you know your rights. This guide should help you with the most frequently asked questions about redundancy.
You will often hear about this in the news. This covers situations where your employer may be closing the place where you work or needs to reduce the number of staff they employ.
Your employer will usually be doing this to save costs because either they do not have enough business themselves or are changing the areas in which they work and need to reduce their workforce.
Yes, it is really important that your employer follows a full consultation process with you. This will usually involve between 2 – 3 consultation meetings where the redundancy situation is discussed, and you are allowed to put forward your own proposals and ideas.
This is where there may be two or more people who are effectively doing the same role and the employer has to decide who may lose their job. They will do this by putting all of you into a selection pool and then using certain criteria to decide who effectively ranks lowest.
Your employer should agree with you in advance what the proposed selection criteria are so that you can have an idea of how you will be assessed. You should be asked to give your feedback on the way they intend to scare you.
You should also see what your scores are after the scoring has taken place so that you can challenge any areas which you feel are unfair.
This can often happen when your employer is restructuring the business to try and make it more efficient. You may end up in competition with other people for what was originally your role.
As part of any fair redundancy process, your employer should offer you any alternative roles that are available in the business. If the role that is offered to you is a suitable alternative role and you reject it, you are at risk of forfeiting your entitlement to a redundancy payment.
Whether or not a role is suitable will depend on an assessment of what the role is compared with your skills, experience, previous job status and benefits package.
Your redundancy entitlement is calculated according to your age, years of service and average weekly wage (which from 6 April 2018 is capped at £508 per week). The maximum basic award is £15,240
The multiplier is based on the following calculation:
- 0.5 week’s pay for each full year worked when you’re under 22;
- 1 week’s pay for each full year worked when you’re between 22 and 41;
- 1.5 week’s pay for each full year worked when you’re 41 or older.
You have to have at least two years’ service to be entitled to a redundancy payment.
Usually, a redundancy payment is paid on the day your employment ends or on the next normal pay run. If no redundancy payment is made, you have six months from the date your employment was terminated to make a claim.
We can help guide you through any redundancy process that you are facing. We can help you with the process, how to handle the consultation meetings, how to lodge an appeal and if necessary how to challenge any dismissal by bringing a formal tribunal claim.