At each stage of the redundancy procedure, employers are under intense scrutiny to meet stringent legal requirements. Employers need to follow the law and treat workers in accordance with their rights.
Failure to follow a correct and lawful procedure will be detrimental to employee-employer relations and can potentially expose the organization to expensive and time-consuming Employment Tribunal claims.
Employers need to meet the following requirements to ensure redundancies they make are lawful:
The employer must inform all employees who are at risk of redundancy of the possibility of redundancy. This includes employees on maternity or sick leave.
The employer should draw up selection criteria and ensure all employees are assessed objectively. This is to avoid any potential discrimination claim.
Employers must consult with all employees who could be affected by the redundancy. If an employer plans to make more than 20 employees redundant in a period of 90 days; the employer is under a duty to carry out collective consultations. The employer cannot give notice until they have completed the consultation stage.
Employers must demonstrate they have made a genuine effort to find other suitable roles for the employees in question. These alternative roles can be within the same company or within an associate company if the employer operates a group of companies.
The parties will enter a settlement bringing the employment period to an end. The agreement must be fair and both parties should act reasonably given the circumstances.
If the employer does not follow these steps, they risk exposing themselves to unfair redundancy claims.
You are usually entitled to statutory redundancy pay if you are an employee and have been working for your current employer for two years or more. Your statutory redundancy pay is calculated based on your age at redundancy and the number of full years worked.
You cannot be selected for the following reasons, or else your redundancy may be classed as an unfair dismissal: