Employment Law: Know Your Redundancy Rights

Linkilaw Company Law

Although getting laid off is a major blow for most people, both from a financial and psychological aspect, it can also prove a real blessing in disguise. That’s why, in the face of a redundancy dismissal, it’s so important to land on your feet as best as you can. It’s the right time to gain a fresh perspective and embark on a voracious hunt for a new job, interest or, who knows, maybe an entirely new career!

While you’re on this exciting transition journey, though, you will need enough money to sustain yourself while job hunting or pursuing some other goals. Your employer is legally obliged to give you a fair redundancy pay. If you’re based in the UK, here’s what you should absolutely know about your redundancy rights:

The criteria for redundancy

 

Basically, you become redundant if your current employer, for whom you’ve been working for a minimum of two years, decides they can no longer afford to keep you and have to end your contract. You’re not entitled to statutory redundancy pay if, the UK government states, your employer offers to keep you on, or suggests suitable alternative work which you refused without good reason.

You’re probably already aware of this, but it doesn’t hurt to point it out again:If you’ve been dismissed for misconduct, you cannot count it as redundancy; therefore, you’re not entitled to your redundancy pay.

How much money will you get?

 

It depends, mostly on your age and the period of time you worked for the current employer.

According to UK law, you’re entitled to:

 

  •       half a week’s pay for each full year you were under 22
  •       one week’s pay for each full year you were 22 or older, but younger than 41
  •       one and half week’s pay for each full year you were 41 or older

 

Please note that the length of service is capped at 20 years and weekly pay is capped at £479, while the maximum amount of statutory redundancy pay is £14,370.

You can calculate your redundancy pay here, and we strongly suggest you do so. Just to be sure nobody is cutting you short!

The redundancy process

 

There are certain principles in place which the employer has to follow in case of implementing redundancies. This is to ensure the process is carried out fairly to the employee(s) getting fired. So, what are the ground rules?

First of all, your employer needs to send you a written statement explaining the reasons why you’re being made redundant and organise a consultation meeting with you. They can do so individually with each of the redundant employees, but if more than 20 employers are being dismissed, then you’re all entitled to a group consultation. Time-frame is also very important, as you should have this consultation at least 30 days before the dismissal, and receive written information about the proposed number of dismissals, the effect dismissals will have on the company and alternatives to dismissal beforehand. If more than 100 employees are facing redundancy dismissal, you have the right to a 45 day-minimum consultation day period.

Conclusion

Being made redundant by your current employer is hard enough – don’t let them add insult to injury by cheating you out of your redundancy rights! If your company is trying hard not to pay you your due, or hasn’t followed the legal process you’re entitled to, it may be time for you (whether on your own or together with the rest of your dismissed colleagues) to take legal action. The first step is finding the right legal professional specialising in employment law. Try out our free contact form and get a free quote – no obligations, only excellent professional service.

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