Redundancy

Redundancy Advice for Employees

If you have been made redundant you may still have a claim for Unfair Dismissal if for example there wasn’t really a redundancy situation, or you have been selected unfairly. It is vital you seek advice as soon as possible to find out if you have a claim.

The statutory definition of “redundancy” encompasses three types of situation: business closure, workplace closure, and reduction of workforce. The dismissal of an employee will be by reason of redundancy if it is “wholly or mainly attributable to” the employer:

An employee who has sufficient qualifying service (usually 2 years) is entitled not to be unfairly dismissed. Redundancy is a potentially fair reason for dismissal.

Even if a dismissal is genuinely on grounds of redundancy, whether it is fair or unfair to dismiss for that reason normally depends on the application of the general test of namely whether the employer acted reasonably in dismissing the employee in all the circumstances.

A redundancy dismissal is likely to be unfair unless the employer:

  • Identifies an appropriate pool for selection.
  • Consults with individuals in the pool.
  • Applies objective selection criteria to those in the pool.
  • Considers suitable alternative employment where appropriate, subject to a trial period

Employees who are dismissed by reason of redundancy may be entitled to a statutory redundancy payment. Additionally, they may have an express or implied contractual right to an enhanced contractual redundancy payment. In circumstances in which an employer is liable to pay an employee a statutory redundancy payment, if the employer either fails to make the payment because it is insolvent or refuses to do so, the employee may apply to the Secretary of State for payment out of the National Insurance Fund.

As experienced Employment Lawyers we have expertise and experience in advising employees on the circumstances of their redundancy and whether they may be able to bring a claim to a tribunal.

For further help and advice, please contact us on 0800 088 6280 or email enquiries@rotherasharp.co.uk

To check the amount of redundancy pay visit http://www.direct.gov.uk/redundancy.dsb