What Constitutes Genuine Redundancy?
Redundancy occurs when your employer needs to reduce their workforce, typically because the business is closing, moving, or requires fewer employees to carry out particular work. For redundancy to be genuine, it must be a legitimate business reason rather than a way to dismiss specific employees.
Statutory Redundancy Pay
If you have been continuously employed for at least two years, you are entitled to statutory redundancy pay. The amount is calculated based on your age, length of service, and weekly pay (up to a statutory maximum), and can be up to 30 weeks pay.
Redundancy Consultation Process
Employers must follow a fair redundancy process, which includes consulting with affected employees, considering alternatives to redundancy, and applying objective selection criteria if choosing between employees in similar roles.
Notice Periods and Pay in Lieu
During redundancy, you are entitled to your contractual or statutory notice period, whichever is longer. Your employer may offer pay in lieu of notice, allowing you to leave immediately while receiving your notice pay.
Unfair Selection for Redundancy
If you believe you were selected for redundancy for discriminatory reasons or because you exercised a statutory right, this could constitute unfair dismissal. Employment solicitors can assess whether your redundancy was handled fairly.
Time Off to Find New Work
During your notice period, you have the right to reasonable paid time off to look for new employment or arrange training for future employment.