What is redundancy?
Redundancy is a form of dismissal from your job. It occurs when your employer no longer has a requirement for your role either because of a business closure, a workplace closure or a workforce reduction.
When making redundancies, an employer must treat you fairly and act in accordance with your contractual and legal redundancy rights. This includes an obligation on your employer to:
- Use a fair and objective way of selecting job roles to be made redundant and tell you what it is;
- Consult with you on the redundancy process and provide you with the opportunity to ask questions and raise objections; and
- Consider alternatives to redundancy.
If you think that you have been selected unfairly, your employer has failed to follow the required consultation procedure or your employer has acted unfairly in other ways, you may have a claim for unfair dismissal and should take legal advice as the time limits on unfair dismissal claims are very strict. [Insert link to unfair dismissal page]
If you are selected for redundancy, you are entitled to be given notice before your employment ends. Alternatively, if your employer doesn’t require you to work your notice period, they may offer you a lump sum instead, known as payment in lieu of notice.
If you are an employee and have at least two years’ continuous employment with the same employer, you will also be entitled to a statutory redundancy payment. You can calculate your statutory redundancy payment entitlement on the government website - calculate-your-redundancy-pay. You should also check your contract of employment and/or staff handbook for any enhanced redundancy payment entitlement.
If your employer has not followed a fair procedure in effecting your redundancy, they may ask you to sign a Settlement Agreement in which you will agree not pursue any complaint against them in the Employment Tribunal or Court in return, often, for an extra payment. Please see our website page on ‘Settlement Agreements’.
Let us help
If you are facing redundancy at work, or have been selected for redundancy, it can be an uncertain and stressful time. We have a team of specialist employment law solicitors who are highly experienced in advising individuals on redundancy. Our employment solicitors can guide you through the redundancy process, advise you on the fairness of your selection for redundancy and the redundancy process undertaken by your employer, and advise you on the terms of any proposed settlement.