Redundancy


Being unfairly selected for redundancy can give rise to a claim in the Employment Tribunal. If you have been unfairly made redundant you might be entitled to compensation. Our employment law specialists can offer a no-win, no-fee service at Watermans Solicitors.

What is redundancy?

Redundancy can occur when the work of a particular type diminishes, or when a workplace closes down. Redundancy can be fair in some circumstances. An employer needs to follow a fair and objective selection criteria when deciding who to make redundant.

Selection criteria should take into account relevant factors, such as disciplinary record, skills and qualification, performance, timekeeping and attendance and sickness record. An Employment Tribunal would not necessarily look at whether the way in which the scoring was applied was fair, for example, they would not look at whether one employee should have received a higher score compared to another employee.

The Employment Tribunal would, however, look at the scoring if it had been used to discriminate against the employee. For example, if a disabled employee received a low score for absences related to their disability then this could be considered disability discrimination. For more info on discrimination claims, please visit our page.

As well as considering the selection criteria fairly, an employer must also consider whether there is an alternative post that they can move you to instead of making you redundant. The selection criteria and duty to provide an alternative to redundancy would not apply in the case of a workplace closure.

Pay

If you have been employed for two or more years, you are entitled to a statutory redundancy payment. If you have a contract of employment which gives you a higher entitlement than statutory redundancy pay then they are legally obliged to pay you this.

Statutory redundancy pay is calculated with reference to your age at the date of redundancy

  • Staff under 21 receive 0.5 weeks pay for each year of service

  • Staff from 22 to 40 receive 1 weeks pay for each year of service

  • Staff over 41 receive 1.5 weeks pay for each year of service

Statutory redundancy pay is capped at 20 years service.

If you are not given sufficient notice of your redundancy then you will be entitled to notice pay. You are also entitled to any outstanding holiday pay that has accrued at the date your employment ends, and any salary that is due to you at the date that your employment ends.

How we can help

Being made redundant can be a stressful time. Our employment law specialists can provide a free assessment of your case. Redundancy dismissal cases have strict time limits and need to be pursued within 3 months of the date of redundancy. Watermans can assist you in a sympathetic and sensitive manner and make the process as stress free and straight forward as possible.

Workplace Closures Protective Award Claim

This can sometimes happen as a result of an employer becoming insolvent or going into administration. If a workplace employing 20 or more staff closes without consultation, the staff might be entitled to a protective award. Employers have a legal obligation to consult with staff in advance of the workplace closing. The legal duty to consult is completely separate the requirement to give notice of the fact that the workplace will close down.

Consultation has a specific function and the purpose of consultation is to look at ways to avoid redundancies and look at a way of minimising the impact of the dismissals.

If the employer fails to consult with staff then staff are entitled to compensation in the form of a protective award claim. The protective award is up to 8 weeks’ pay.

Compensation

If your employer is insolvent or in administration you will still receive the compensation that you are entitled to.

An Employment Tribunal can award you up to 8 weeks’ pay for the failure to consult. Each week of pay is based on your actual weekly earnings with the employer and is capped at £525 per week (CORRECT AT TIME OF DRAFTING)

In addition to this you might be entitled to payments for If you have been employed for two or more years, you are entitled to a statutory redundancy payment. If you have a contract of employment which gives you a higher entitlement than statutory redundancy pay then they are legally obliged to pay you this.

Statutory redundancy pay is calculated with reference to your age at the date of redundancy

  • Staff under 21 receive 0.5 weeks pay for each year of service

  • Staff from 22 to 40 receive 1 weeks pay for each year of service

  • Staff over 41 receive 1.5 weeks pay for each year of service

Statutory redundancy pay is capped at 20 years service.

If you are not given sufficient notice of your redundancy then you will be entitled to notice pay. Notice pay is completely separate from the duty to consult. You are also entitled to any outstanding holiday pay that has accrued at the date your employment ends, and any salary that is due to you at the date that your employment ends.

How we can help

Having your workplace close can come as a shock and can have devastating consequences. Our employment law specialists can provide a free assessment of your case. Protective award cases have strict time limits and need to be pursued within 3 months of the date of redundancy. Watermans can assist you in a sympathetic and sensitive manner and make the process as stress free and straight forward as possible.