It is an unfortunate fact that in the current economic climate many firms are making redundancies.
Redundancy itself is a form of dismissal and the first thing to check is whether it is a true redundancy situation.
The reasons for redundancy can be that your job is no longer need either through a new system of work, new technology or that the job simply no longer exists, that the business is closing down, moving or that they need to cut costs which means that staff numbers must be reduced.
If dismissal is not a true redundancy situation then you may have a claim for unfair dismissal and you should seek advice from a solicitor immediately.
If it is a true redundancy situation i.e. the need for your job is no longer there or the need for staff numbers to be reduced, then your selection for the redundancy must still be fair.
You also have a right to consultation.
If less than 20 employers have been made redundant then your employer needs to consult with you individually.
If more than 20 employers are being made redundant in one establishment within a 90 day period then the redundancy is a collective redundancy and there needs to be a collective consultation.
You have a right to be consulted about the redundancy and to make observations. Your employers need to consider alternatives to redundancy. If you raise reasonable alternatives to the redundancy your employers have to consider them.
If your employers unreasonably refuse the alternatives you may have a claim for unfair dismissal and again you should seek advice from a solicitor.
If you are in a true redundancy situation and you have been fairly selected then you have an entitlement to redundancy pay.
The pay is based on how long you have been continuously employed, your age and your weekly pay up to a limit (£380.00 is the current maximum).
You have a right to redundancy pay if you have worked continuously for your employers for at least 2 years and you have been made redundant.
It is also due if a fixed term contract for 2 years or more is not renewed because of redundancy. In addition to the redundancy pay you should also receive payment for your notice period or payment in lieu of your notice. If you are entitled to redundancy pay but you find a job elsewhere before your redundancy notice period has finished, you may loose your rights to redundancy payment.
There are 2 types of redundancy pay. The first is contractual redundancy pay.
Some employers offer more generous packages that the statutory minimum as part of their employment benefits. You should therefore check your contract. If your contact is silent then your employer may still offer you more favourable terms than the statutory minimum and they may ask you to sign a compromise agreement in relation to the same.
This is an agreement stating that you will not take any further action against the company such as claims for further pay or unfair dismissal.
A compromise agreement cannot prevent you from claiming personal injury at a future date. A compromise agreement is only valid if you have independent legal advice on the same and you should contact a solicitor to go through a compromise agreement is you have one. You can contact Bartletts Solicitors on 0151 227 3391 if you have a redundancy agreement to discuss.
Your employer also needs to pay for the advice you receive in relation to the redundancy agreement.
The second type of redundancy pay is statutory redundancy pay is calculated as follows:-
1. Half a weeks pay for each full year of service were your age is under 22.
2. One weeks pay for each full year of service when your age is 22 or above but under 41.
3. One and a half weeks pay for each full year of service were your age is
4. 1. or above subject to the weekly maximum of £380.00 per week.
If you are facing the prospects of redundancy and do not wish to consult a solicitor you can contact Acas on 08457 474747 who will be able to provide you with assistance as well.
