When being made redundant you have the right to be satisfied that redundancy is the real reason for your dismissal.

Under the Employment Rights Act 1996 redundancy is potentially a fair reason for dismissal. However your employer must ensure the process is fair and they must use the correct procedures.

We can advise on the legitimacy of the redundancy and the redundancy process. Contact us if you think that you have been unfairly selected for redundancy or unfairly made redundant.

 

Redundancy payment

An employee who has been employed for two years or more in entitled by statute to a redundancy payment calculated in accordance with age and length of service and weekly gross pay.

This is subject to a cap of £430.00 a week and 20 years' service. Some employers provide for an enhanced redundancy payment contractually or on a discretionary basis.

When is an employee redundant?

An employee is dismissed by reasons of redundancy where a dismissal is attributable wholly or mainly to the fact that:


the employer has ceased or intends to cease to carry on the relevant business;

the employer ceases to carry on the business in the particular place where the employee was employed;

the requirements of the business for the employee to carry out work of a particular kind, or in the place where the employee was employed, have ceased, diminished or are expected to do so.

 

The redundancy process

Your employer will need to demonstrate when selecting employees for redundancy that they have reviewed the number of staff required to maintain the business and the positions that will become vacant. They must also show that they have considered alternative employment for those employees selected.

You may be able to make a successful unfair dismissal claim if you can demonstrate that you have been dismissed for some other reason.

Selection

Your employer's selection criteria must be reasonable and it must be followed in a consistent and unbiased manner.

The criteria should be drawn up to reflect the employer's business priorities

The criteria must not be discriminatory and must withstand objective assessment.

Your employer should identify a pool from which they will select those potentially redundant.

Consultation

Your employer is required to consult both collectively (where 20 or more employees may be made redundant) and with the individual.

Qualifying periods of employment

You will need to have at least two years' continuous employment to claim a redundancy payment; however you will only require one year's continuous service to bring a claim for unfair dismissal. (two years for employees starting employment on or after 6th April 2012).

If however the reason for your redundancy is discrimination, you do not require a qualifying period of employment to make a claim.

We can advise you if you believe that your employer has not followed the correct redundancy procedure, if you believe redundancy is not the real reason for your dismissal or if you have been unfairly selected for redundancy.