Frequently Asked Questions

Redundancy

 

What is a redundancy?

Although employers frequently label dismissals as redundancies, a redundancy must involve one of the following circumstances:

  • Where the business closes down
  • Where the business continues but the place you work at closes down
  • Where the business requires fewer employees to carry out the work you do.
 

Yes. If your employer wants to make redundancies, it must in fact consult all potentially affected employees, whether or not they are actually selected for redundancy. The exact nature of the consultation will depend on the number of employees to be made redundant and the circumstances of the particular case, but your employer should provide the following minimum information:

  • The reason for the redundancy
  • Who is at risk of redundancy
  • How employees will be chosen
  • If there are any alternatives to being made redundant
  • When the redundancies will take place
  • How much each employee will receive for redundancy pay

The redundancy consultation is a two-way process, where you should not be afraid to ask questions, including what selection criteria will be applied, as well as suggesting other suitable jobs for you within the company.

Does my employer have to consult with me about my proposed redundancy?

 

Following the consultation process, all employees who are “at risk” of redundancy should be scored against a set of objective selection criteria. After the selection criteria have been applied, and you have been selected for redundancy, your employer should invite you for a one-to-one meeting to discuss how the criteria were applied and your score.  At the meeting, you should be given an opportunity to question and challenge the scoring.

How does the redundancy selection process work?

 

Redundancy is one of the few types of dismissal you do not have a legal right to appeal.  However, most employers believe it is best practice to allow an appeal.  You should lodge your appeal as soon as possible after the decision has been made to make you redundant, putting in writing your reasons for why you should stay employed.

Can I appeal the decision to make me redundant?

 

If you are made redundant and have less than two years’ continuous employment, you will only be entitled to receive your notice pay unless you have an employment contract that says otherwise. EXPLAIN NOTICE PAY or have a link to where this is explained elsewhere on the site.

If you are made redundant and have more than two years’ continuous employment, you will be entitled to receive a minimum statutory redundancy payment, as well as any other contractual payments you are entitled to, including notice pay.

Statutory redundancy pay is calculated based on your age, years of service and average weekly pay. However, the weekly pay figure is now limited to a maximum of £479 per week and the maximum number of years that will be considered is 20. The weekly amount does differ depending on your age during your employment:

  1. For each year of service below the age of 22, you will receive half a week's pay (capped at half of £479) for each year. 
  2. For each year of service aged 22-40, the week's pay (capped at £479) is multiplied by 1.
  3. For each year of service aged 41 or above, the weekly pay (capped at £479) is multiplied by 1.5.

The maximum statutory redundancy payment is currently £14,370.

What payments am I entitled to if I am made redundant?

 

What if my employer is unable to make my redundancy payment?

if your employer is unable to pay it due to insolvency, you may be able to apply to the government for payment. More information can be found at https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you.

 

If you believe you have been unfairly selected and it is not a true redundancy, you may be able to pursue an Employment Tribunal claim for unfair dismissal. The deadline for bringing such a claim is three months less one day from the effective date of termination of your employment.

To bring a claim for a statutory redundancy payment, the deadline is six months less one day from the effective date of termination of your employment.  For more information on how to make an Employment Tribunal claim, see Making a Claim FAQ.

If I want to dispute my redundancy as unfair, what can I do?

 

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