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Redundancy, the threat of redundancy, and the process of making (often loyal and longstanding) staff redundant are delicate issues that we at Curwens deal with every day, providing representation and advice whilst sitting on both sides of the fence.

So, what are your rights (as an employee) and responsibilities (as an employer)?

Redundancy is a form of no-fault dismissal from your job, that happens when your employer decides that they need to reduce their workforce. However, the law tightly regulates this process; meaning that as an employer, you must follow the correct procedures so that your employees can receive what they are entitled to without resorting to an employment tribunal.

When selecting staff to be offered redundancy, an employer must use a fair and transparent process. You cannot select using criteria such as age, gender, race, disability, pregnancy, or any protected characteristic, because this could lead to a claim of unfair dismissal.

Furthermore, selection cannot be based upon:

• working patterns, for example targeting part-time or fixed-term employees
• an employee’s health and safety activities
• whistleblowing
• membership (or non-membership) of a trade union
• targeting employees taking part in lawful industrial action lasting 12 weeks or less

Your employer can make you redundant without having to follow a selection process if your job no longer exists, for example if:

• your employer is closing down a whole operation in a company and making all the employees working in it redundant
• you’re the only employee in your part of the organisation

Otherwise, criteria used are typically:

• self-selection (asking for volunteers)
• re-recruitment (where all staff reapply for a reduced number of roles)
• last in, first out
• staff appraisal markings, skills, qualifications and experience
• disciplinary records

Any employee who feels that they have unfairly been selected for redundancy, could have a case for unfair dismissal.

If you choose to apply for voluntary redundancy, it is up to your employer whether or not they actually decide to make you redundant, and if you reapply for your job, you have all the recruitment law protections.

If you do not apply for your old job, or you’re unsuccessful in your application, you’ll still have a job until your employer makes you redundant.

Suitable alternative employment

Your employer might offer you suitable alternative employment within your organisation or an associated company. Indeed, your redundancy could be considered as unfair dismissal if your employer has suitable alternative employment, and they do not offer it to you. Whether a job is suitable depends on:

• how similar the work is to your current job
• the terms of the job being offered
• your skills, abilities and circumstances in relation to the job
• the pay (including benefits), status, hours and location

You may lose your right to statutory redundancy pay if you turn down suitable alternative employment without good reason.

Consultation

You are entitled to a consultation with your employer if you’re being made redundant.

This involves speaking to them about:

• why you’re being made redundant
• what alternatives are available to redundancy

An employee can make a claim to an employment tribunal if their employer does not consult properly, for example if they start late (less than 30 days before any dismissal takes effect), or do not consult at all.

Furthermore, if an employer is making 20 or more redundancies at the same time, then specific collective redundancy rules apply

Notice periods

The law says that you must be given a notice period before your employment ends and any redundancy takes effect.

The statutory redundancy notice periods are:

• at least one week’s notice if employed between one month and 2 years
• one week’s notice for each year if employed between 2 and 12 years
• 12 weeks’ notice if employed for 12 years or more

However, you should check your employment contract, since whilst your employer may give you more than the statutory minimum, they cannot offer you less.

Statutory Redundancy Pay

You’ll normally be entitled to statutory redundancy pay if you’ve been working for your current employer for 2 years or more.

You’ll get:

• half a week’s pay for each full year you were under 22
• one week’s pay for each full year you were aged between 22 and 40
• one and half week’s pay for each full year you aged over 41
• however, your length of service entitlement is capped at 20 years.

However, your weekly pay calculation is capped at £700, and the maximum statutory redundancy pay you can get is currently £21,000.

In Conclusion

The law surrounding Redundancy – and indeed all Employment Rights – presents a challenging but navigable landscape for employers and employees alike. Our Employment Law team advise and represent both employers and employees on Redundancy matters. At Curwens, we can help with advice and guidance in advance of any potential legal procedures and representation and support if legal engagement should become necessary.

Please feel free to contact Omar Qassim by email [This email address is being protected from spambots. You need JavaScript enabled to view it.] or by phone on 020 8363 4444.