Know Your Redundancy Rights

In this straightened economic climate, redundancy is a threat faced by millions of UK employees. Large corporations are hitting the headlines by making thousands of their employees redundant, but redundancy could happen at a company of any size when things get tough and businesses are forced to cut their costs.

If you are an employee who is potentially facing redundancy, it is important to know your rights. If you are dismissed unfairly, you can take your employer to an employment tribunal and potentially claim a substantial payment, or even win your job back. And even if your dismissal is inevitable, it is critical that you fully understand the redundancy procedure and what alternatives may be available to you.

First, consult with your company’s redundancy policy – this should outline the company’s redundancy procedure and your rights as an employee. Here are a few of the areas that should be covered…

What are Acceptable and Unacceptable Reasons for Redundancy?

If an employer wants to make one or more members of their company redundant, the reasons given must be legally acceptable. Essentially, your job must disappear, either because the company is ceasing operation or the position is no longer necessary (the business is reducing its operations, closing a particular branch, technology has rendered the job obsolete, and so on.)

When it comes to selecting individual employees for redundancy there are certain criteria that are permissible for selecting one employee rather than another:

• Attendance and Disciplinary Record – Redundancies based on attendance and discipline must be backed up with documentation (written warnings, records of attendance and so on)

• Standard of Work – This also needs to be backed up with objective written evidence (typically from employee appraisals)

• Skills and Qualifications – Employees can be selected for redundancy if they have comparatively weaker skills and qualifications than their fellow workers

If the reason given for your redundancy is not one of these, you may have a case for unlawful dismissal. Moreover, the following are some of the reasons that are automatically considered to be unfair dismissals:

Being made redundant due to trade union membership or non membership
Redundancies associated with pregnancy or maternity/paternity/adoption leave
Any redundancy due to discrimination (gender, orientation, religion, age, and so on)

What are the Alternatives?

If you have a meeting concerning possible redundancy with your employer, it is wise to discuss the potential alternatives. These may include the elimination of overtime, shifting to part time work, a job share scheme, and other similar schemes. Your company redundancy policy may detail acceptable alternatives, and note that you also have the right to appeal a redundancy decision.

There may be the possibility of moving to a different position within the company, possibly with a trial period. It is also important to know that doing a trial period of alternate employment does not compromise your right to Statutory Redundancy Pay (SRP) – but refusing a reasonable alternate job offer can compromise this right.

How Much Statutory Redundancy Pay Could I Get?

If worst comes to worst and you are made redundant, make sure you know the level of Statutory Redundancy Pay you are entitled to.

Firstly, certain people are not eligible for SRP; these include agency workers, casual workers, partners, the self employed and some directors are not entitled to SRP. SRP is also only available to those who have been employed continuously for more than two years. The amount is calculated on the following basis:

• For every year worked below the age of 22: ½ week’s pay
• For every year worked between the ages of 22 and 40: 1 weeks pay
• For every year worked over the age of 41:1 ½ weeks pay

This goes up to a maximum of 20 years, and available weekly pay is capped at £350.

This is just a brief introduction to the rights an employee has concerning redundancy; consult your redundancy policy and read further details on the BERR (Department for Business, Enterprise and Regulatory Reform) website in order to be fully informed and prepared if you are facing redundancy.