A common question asked by people facing redundancy is:
Am I Entitled to Redundancy Pay?
If you are an employee and have been dismissed for reason of redundancy, or laid off, or put on short-time working, then you may be entitled to claim from your employer a statutory severance payment, known as a redundancy payment.
Furthermore, if you feel that the employer failed to follow a fair process in carrying out the redundancy or failed to consult with you prior to the dismissal, your dismissal may be considered unfair and compensation may be available.
Employment Tribunal Compensation Limits
From 6 April 2015, the cap on a weeks' pay rose to £475 and the maximum compensation award for an unfair dismissal claim has risen to the lower of either a years' gross pay or £78,335.
The maximum statutory redundancy payment will increase to £14,250. It is however possible for Employment Tribunals to award a total of £92,585 in unfair dismissal compensation when the maximum basic award is also taken into account.
If you are unsure if you are entitled to a redundancy payment or if your statutory or contractual redundancy payment has been calculated correctly, call our Redundancy Solicitors on 03306069589 or contact us online and we will call you.
Examples of Redundancy Payments
Example 1 - Our client was unfairly selected for redundancy by a Council. Our Redundancy Solicitors issued the claim in the Employment Tribunal to protect her position, and at the same time helped our client draft her appeal against her dismissal. We were successful in achieving reinstatement for our client back into her old job including payment of backdated wages to the date of dismissal.
Example 2 - Our client was laid off by a construction company. Our Redundancy Solicitors lodged his claim in the Employment Tribunal. The employer subsequently became insolvent. We obtained judgment against the employer and recovered £8,000 in wages and redundancy pay for our client from the Redundancy Payments Office.
Example 3 - Our client was unfairly selected for redundancy by a property development company. Our Redundancy Solicitors pursued the claim in the Employment Tribunal and resolved the claims for unfair dismissal, whistleblowing, failure to pay holiday pay and failure to provide written particulars of employment at judicial mediation with an agreed award of £115,000.
If you would like help to understand if you have a redundancy claim or to establish how much an unfair dismissal claim may be worth, our Employment Solicitors that specialise in Redundancy offer legal advice without jargon and fixed fees. Once we have provided a written quote for the agreed work, that price will not change.
What is Redundancy?
A redundancy takes place when an employee's role becomes surplus to the requirements of the business in which they are employed, and as a consequence they are dismissed by the employer.
When Does Redundancy Happen?
A redundancy situation can arise when:
- An employer ends the business for the purposes of which you are employed.
- An employer ends the business in the place where you are employed.
- Where the requirements of the business to carry out the particular kind of work that you do or the particular kind of work that you are doing in the place where you are employed, has ceased or diminished or are expected to cease or diminish.