Redundancy - What You Can Expect as an Employee

06 April 2017

If you are facing a redundancy situation it’s important to understand what rights you have, as this will help you to know whether a fair process has been followed, or whether the redundancy amounts to an unfair dismissal.

What You Can Expect

Your employer should consult you on an individual basis. If more than 20 employees are at risk of redundancy employers are legally obliged to carry out a ‘collective consultation’ with employees.

Even in circumstances where a collective consultation is not legally required, it is good practice for the employer to carry out individual consultations with the employees who may be affected by the redundancies. If a selection criteria is to be used to decide who’s going to be made redundant, the employer must ensure this is fair and objective.

There is a requirement for the employer to consider suitable alternative employment within the business for any employees affected. Whether the role is suitable will be based on the hours, status, pay, and the nature of the alternative role itself. It’s important for you to consider the role carefully, as you may risk losing any redundancy payment if you unreasonably reject a role your employer considers suitable.

Redundancy Payments

Depending on how long you have worked for your employer, you may be entitled to a statutory redundancy payment. The current qualifying period for this payment is two years of continuous service with the employer. The amount you are entitled to depends on your age, how long you have been employed and your weekly pay.

In addition to this statutory redundancy payment, some employees may also be entitled to an enhanced redundancy payment as part of their employment contract.

Unfair Dismissal

An employee who has been employed for at least two years has the right to not be unfairly dismissed.

Even if the redundancy is genuine, you could make a claim for unfair dismissal if your employer has not followed a fair procedure, or has failed to consider suitable alternative employment for you.

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