You may be expecting redundancies to be made at work or the announcement of redundancies may have come out of the blue.
Either way the thought of redundancies will have an impact on you; it is likely to cause you stress and anxiety or even make pre-existing mental health problems worse. If you are struggling with your mental health you should speak with your GP.
In order to help relieve the stressors that come with facing redundancy we have put together a guide to help you navigate your rights when facing a potential redundancy situation at work. If you are concerned that your employer has breached your rights during the redundancy procedure, you should seek advice as soon as possible.
- When am I likely to face redundancy?
You are likely to face redundancy when your role is no longer needed. It is in effect a type of dismissal.
Redundancies will take place, if part or all of the organisation is:
- Closing, or has already closed.
- Changing the types or number of roles needed to carry out certain work.
- Changing location.
- Should I take voluntary redundancy?
Your employer may give you the option to put yourself forward for redundancy before being selected, this is known as voluntary redundancy.
If you are offered voluntary redundancy, your employer will conduct ‘without prejudice’ correspondence and provide you with a settlement agreement.
You should seek advice in relation to the terms of the settlement agreement, to ensure the offer is appropriate.
- What is the consultation process?
When you redundancies are taking place, and you are to be affected, your employer must consult with you, by law.
The consultation process allows for your employer to talk about the planned changes and why you are at risk of redundancy. It also provides you with the opportunity to ask questions and make suggestions on how redundancies can be reduced or avoided.
Your employer should listen to your ideas and consider them.
Where collective consultation does not take place, you will be individually consulted.
In most circumstances, consultation will usually take one month but will depend on how many employees are at risk of redundancy, as follows:
- 20 to 99 employees – at least 30 day consultation.
- 100 or more employees – at least 45 days consultation.
If more than 20 redundancies are being made:
By law, your employer must hold collective consultation where the following applies:
- Planning 20 or more redundancies.
- Redundancies are in one establishment – not necessarily in the organisation as a whole, which may be much larger.
- Plan to make the redundancies within 90 days.
If you require further advice on collective consultations, you should seek additional advice.
- What is a selection process?
In certain circumstances your employer may ‘pool’ together similar roles for example, they will pool together certain positions or departments.
Once pooled, an agreed criteria will be used to choose who will be made redundant from the selection pool.
The criteria for the selection process, should not discriminate against anyone because of:
- Age
- Disability
- Race
- Gender reassignment
- Gender
- Religion or belief
- Pregnancy and maternity
- Marriage and civil partnership
- Sex
- Sexual orientation
For example, if you have been absent from work because of your disability or pregnancy reasons, these should not be taken into account if the criteria takes into account absence from work.
If you believe the selection criteria is discriminatory against you, you should seek advice.
- What happens when I am given notice of redundancy?
If you are being made redundant, your employer must:
- Tell you your notice period.
- Tell you whether you will work your notice period or be paid in lieu of notice.
- Tell you your accrued unused holiday entitlement, if any.
- Inform you of your Statutory Redundancy Payment
- You will also be informed that during the notice period you will be entitled to take time off to attend interviews etc.
- How much redundancy pay am I entitled to?
You have the right to redundancy pay, if you have been employed for more than 2 years.
Your redundancy pay will be calculated based upon:
- Your age.
- How long you have been employed for, this is capped at 20 years’ service.
- Your weekly pay, which is capped at £571 (this is updated every April by the government).
You can check your entitlement here.
- My employers offered me another job…what should I do?
If a suitable alternative role becomes available within the business, your employer must offer it to you rather than make you redundant.
You do not have to take the job if you do not think it is suitable. Whether a job is suitable will usually depend on:
- How much you will be paid and the benefits you will get.
- Where the job is located.
- How similar is the new job to your current job role.
- What terms you have been offered, are they similar?
However, if your employer does not accept your reasons for turning down the job, they could refuse to pay your redundancy pay.
If you are unsure whether the job role is suitable, you should seek advice.
- I don’t think the redundancy is fair…
If you feel that your employer has failed to properly follow the redundancy process, you are entitled to appeal the decision, this should be made in writing.
A meeting should then be arranged to discuss your appeal.
Once the appeal meeting has taken place your employer is required to inform you in writing as to whether the appeal is accepted or rejected.
If you require any advice as to the appeal process or your appeal has been rejected, you should seek advice as soon as possible. Please contact us on [email protected]