Redundancy advice for employees

How do I know my job is really redundant?

A redundancy situation occurs where:

• A business closes or relocates, or an employer decides to shut down its business.
• A particular workplace closes or relocates, or an employer decides to close a particular workplace, such as one of its offices or factories.
• An employer needs fewer employees to carry out a particular type of work.

If at least one of the above does not apply then there may not be a genuine redundancy situation and you may have a claim for unfair dismissal.

Have I been unfairly dismissed?

To ensure that a dismissal for redundancy is fair, your employer must establish that:

• It is the real reason for your dismissal; and
• Your employer acted reasonably, in all the circumstances of the case, in treating redundancy as the reason for dismissing you.

To show that it has acted reasonably your employer should have:

• Warned and consulted you about your proposed redundancy;
• Adopted a fair basis for your selection. If there are other employees who do your job or a similar job to you, your employer should create a pool to select potentially redundant employees and must select against fair criteria;
• Considered suitable alternative employment and, if it is available, offer suitable alternative employment within the company.

Redundancy payments

Employees with at least two years’ continuous service are entitled to a statutory redundancy payment capped at the statutory maximum, currently £544. Enhanced redundancy may be payable under your contract or if your employer has a practice of providing enhanced redundancy terms to its employees. Notice pay and any accrued holiday pay are also due.

What if my employer is insolvent?

If your employer is insolvent or is refusing to pay your redundancy, you can apply to the Secretary of State for payment out of the National Insurance Fund.

Can I appeal?

It is important that you appeal your dismissal for two reasons:

• Your employer may reconsider its decision and reinstate you; and
• If you do not appeal and subsequently bring a claim for unfair dismissal, the employment tribunal may reduce your compensation.

If you are being made redundant or wish to speak to us about your current situation and need help and advice, please contact our Employment Team as soon as possible for further advice. York 01904 716000 or Wetherby 01937 583210 or email law@warekay.co.uk.