Facing redundancy can be a challenging and uncertain time. Understanding your rights and the processes involved can help you navigate the period more effectively. Below are some frequently asked questions and answers to guide you through a possible redundancy.
What is Redundancy?
Redundancy occurs when your employer needs to reduce their workforce because some jobs are no longer required. This can happen due to various reasons, such as business closure, workplace relocation, or a diminished need for employees to carry out a particular kind of work.
Am I entitled to Redundancy pay?
If you’ve been continuously employed by your current employer for two years or more, you’re entitled to statutory redundancy pay. The amount is calculated based on your age, length of service, and weekly pay, up to a statutory maximum. Some employers may offer enhanced redundancy packages, so it’s advisable to check your employment contract or company policies.
How is Statutory Redundancy pay calculated?
Statutory redundancy pay is calculated as follows:
- Half a week’s pay for each full year you were under 22
- One week’s pay for each full year you were 22 or older but under 41
- One and a half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years, and your weekly pay is subject to a maximum limit set by the government.
What is the Redundancy process?
The redundancy process usually involves the following steps:
Consultation – your employer must consult with you if you’re at risk of redundancy. This involves discussing the reasons, exploring alternatives, and considering any suggestions you may have.
Selection Criteria – if only some employees are being made redundant, the employer should use fair and objective criteria to select who will be made redundant.
Notice Period – you’re entitled to a notice period before your employment ends. The length depends on your duration of service.
Appeals – if you believe the redundancy decision was unfair, you have the right to appeal.
Can I take time off to look for a new job?
You can. If you’ve been continuously employed for two years and have been given notice of redundancy, you’re entitled to a reasonable amount of time off to look for another job or arrange training. The maximum your employer has to pay you for this time off is 40% of one week’s pay.
What if I’m offered an alternative role?
Your employer may offer you a suitable alternative position to avoid redundancy. You’re entitled to a four-week trial period in the new role. If, after this period, the role is deemed unsuitable, you can still claim redundancy pay. However, unreasonably refusing a suitable alternative may affect your entitlement to redundancy pay.
What are my rights if I’m on Maternity Leave?
Employees on maternity leave have special protections. If redundancy arises, employers must offer any suitable alternative vacancies to those on maternity leave before other employees. Selection criteria must not discriminate based on maternity-related reasons.
Can I appeal against Redundancy?
If you believe your redundancy was unfair or the process was not properly followed, you can appeal the decision. Initially, raise your concerns with your employer. If unresolved, you may consider bringing a claim to an Employment Tribunal.
What support is available after Redundancy?
After redundancy, you may be eligible for certain benefits and support, such as Jobseeker’s Allowance or Universal Credit. Additionally, some employers offer outplacement support to assist with job searching and career transition.
How can we help?
Navigating redundancy can be pretty complex. We offer expert legal advice to ensure your rights are protected and to guide you through the process. Whether you need assistance understanding your entitlements, negotiating a redundancy package, or challenging an unfair redundancy, our experienced team is here to help.
For further advice, contact us on 01792 468684 or email enquiries@pgmsolicitors.co.uk
