Redundancy can be a challenging situation for any employee. It brings financial uncertainty and requires a clear understanding of your legal rights and entitlements. A redundancy solicitor in Lancaster can ensure the process is carried out correctly, that your rights are upheld, and that you receive the redundancy pay you are entitled to. This blog outlines how redundancy works, the legal requirements for employers, the rights of employees, and how seeking legal support can help you achieve a fair outcome.
Understanding Redundancy
When an employer determines that certain roles are no longer necessary, redundancies may be proposed. The law recognises that this can be a legitimate business decision, but it also sets clear requirements to prevent unfair or unlawful dismissals. Not all situations described as redundancy meet the legal definition. A genuine redundancy involves a reduced need for specific roles, a workplace closure, or a diminished requirement for certain work. If a position continues to exist or is replaced by another person, the redundancy may not be genuine. A redundancy solicitor can assess whether the employer’s decision complies with legal standards and whether the process followed is fair.
The Importance of Consultation
Employees facing redundancy have a legal right to consultation. Employers are required to consult with affected staff before making any final decisions. For larger-scale redundancies, such as 20 or more roles within one establishment, this consultation must be collective. For smaller numbers, individual consultation is still required. During consultation, employers must provide key information including the reasons for redundancy, the selection criteria, and any potential alternatives. Failure to consult properly, or treating the consultation process as a formality, can breach employment law and give grounds for challenge.
Fair Selection and Avoiding Discrimination
When selecting employees for redundancy, employers must apply objective and non-discriminatory criteria. Factors such as skills, experience, performance, or length of service are commonly used, but they must be applied consistently and fairly. Selection based on age, disability, gender, maternity leave, religion, or any other protected characteristic is unlawful. If you believe your selection was not based on fair or objective grounds, legal advice can help you review the process, identify potential breaches, and take appropriate action.
Redundancy Pay and Entitlements
Employees who meet the qualifying criteria are entitled to redundancy pay. To qualify for statutory redundancy pay, an employee must usually have at least two years of continuous service. The amount payable is calculated using a formula based on age, length of service, and weekly pay, subject to statutory limits. For example, employees aged 41 or over are entitled to one and a half weeks’ pay for each year of service at that age. Some employers offer enhanced or contractual redundancy packages that exceed statutory minimums. If the employer is insolvent, employees may claim their entitlement through the government’s Redundancy Payments Service. Errors in calculation are common, so it is advisable to have payments reviewed to ensure accuracy.
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