What is redundancy?
Redundancy is a form of dismissal that happens when employers need to make their workforce smaller. For example, it can occur when an employer no longer has a business need for an employee or because the company is dissolving.
For redundancy to be genuine, the employer must be able to show that your job will no longer exist. If so, you might be entitled to receive a statutory payment. The employer has to follow the correct procedures set out by employment laws.
If you are being made redundant, you have rights. You are eligible for:
- A consultation with your employer and the option to move to another job within the company.
- You may have time off to search for another job.
- A notice period and redundancy pay.
You must have been selected fairly to be made redundant, for example, because of your level of experience or ability to do the job. However, the employer cannot choose you because of gender, disability, age or if you are pregnant. Such a dismissal could be considered to be unfair.
Employers might offer incentives for employees to take voluntary redundancy. For example, you might be entitled to get extra pay or not have to work out the notice period. You’ll still be getting all the other rights you are entitled to.
How is redundancy pay calculated?
Statutory redundancy is calculated based on age, weekly pay and how many years you have on the job. You can only qualify for redundancy pay if you’ve worked for your employer continuously for at least two years. You can use the government website calculator to work out the statutory minimum that you are entitled to.
For each full year you’ve worked, you’ll get:
- Half a week’s pay if you are under 22
- A whole week’s pay if you are between 22 and 41 and,
- A week and a half’s pay if you are over 41.
If you are unsure if your employer is acting reasonably or of your rights, Robertsons Solicitors can help. Please contact us for a confidential consultation to discuss your options.