Redundancy
Losing your job can have legal as well as financial repercussions, so
it's helpful to know exactly what your legal rights are and how much you
might be entitled to be paid.
Your rights will depend on how long you've worked for your employer and
why you've been dismissed. You may be entitled to:
• Wages for your notice period and holiday pay owed.
• Other contractual benefits for your notice period such as pension
and car.
• The Basic Statutory Award. Contact us for details.
• Compensation if it is not a true redundancy. See below.
Since the introduction of Conditional Fee Arrangements, we are able to
take cases on a NO WIN NO FEE basis. We are able to tailor our arrangements
to suit your personal financial needs.
THE OBJECTIVE IS TO RESOLVE YOUR EMPLOYMENT PROBLEMS AND, WHERE APPROPRIATE,
ENABLE YOU TO OBTAIN COMPENSATION WITHOUT YOUR INCURRING LEGAL COSTS!
Dismissal
There are many reasons why your employer is allowed to make you redundant:
• your company is closing down
• the work you do is no longer needed
• your company is moving location
• it decides it needs fewer staff.
Your employer is allowed to dismiss you for serious misconduct but must
not try to disguise this as a redundancy. It is the job that becomes redundant
- not the worker. Make sure you know the real reason.
In cases where there are more than one affected employees in the same
or similar positions, your employer should pool the employees together
and apply a selection criteria based on fair principles.
In order for any dismissal by reason of redundancy to be fair, you should
be given as much notice as possible that your position is at risk of redundancy;
consulted about the situation and considered for any suitable alternative
position before any final decision is taken.
Your employer isn't allowed to get rid of you on the grounds of sex, pregnancy,
race, disability or trade union membership.
The statutory dismissal procedure should also be followed allowing you
to state you case at a dismissal meeting. At this meeting, you have a
right to be accompanied by a fellow employee or trade union representative.
You should have the right to appeal any decision to dismiss.
If 20 or more employees are proposed to be made redundant, your employer
must follow a statutory consultation process for a minimum period of time
with employee representatives as well as individuals.
If you are unsure whether you have been fairly dismissed, contact us on
0118 9559613
If you feel you've been unfairly dismissed - or you don't agree with your
redundancy payout - you can take your employer to an Employment Tribunal.
Alternative job
If you're made redundant you could qualify for Statutory Redundancy Pay
- this is the basic legal minimum.
You can lose the right to statutory redundancy pay if you reject a suitable
alternative job. Whether a job is suitable will depend on the terms -
for example, hours, location, and pay. You have the right to a trial period
in an alternative job and can still take redundancy if you or your employer
decides it isn't working out.
How much statutory redundancy pay you'll get depends on your age, your
weekly pay (capped at £310.00) and how long you've worked for the
company (see table).
Your company may well offer a better redundancy package than the statutory
minimum. If you haven't got a pre-arranged agreement, it would be worth
trying to negotiate a deal. You might even be able to get extras thrown
in like your computer, company car or mobile phone. You might also persuade
them to pay for private careers advice.
Compensation
A Tribunal can order an employer to give you your job back, but will usually
make them pay you compensation.
The maximum is £60,600 plus an allowance for each week's pay lost
up to a limit of £310 a week. This cap is raised each year in line
with inflation. You can't claim for more than 20 years service.
You generally have to have worked for a company for 12 months to be able
to take a case to a tribunal - but there are exceptions to this rule.
In cases of discrimination and for health and safety issues you can complain
from your first day.
Generally you have three months from termination to take action.
So, if you have been made redundant or are likely to be so please contact
us for help.Information on this website does not constitute legal advice.
Click to return to Employment
Law
Contact Nick Barnett in our Employment Law Department on:
• Direct Line: 0118 9559613
• Email: n.barnett@hewetts.co.uk
• or complete the Employment
Enquiry Form.