The R word: Redundancy is a form of dismissal from your job. It happens when employers need to reduce their workforce.
In an ever-changing employment landscape, understanding your redundancy rights is more important than ever. If you’re facing redundancy, it’s crucial to know what protections are in place, what pay you’re entitled to and how employers should approach the process fairly. This guide outlines your rights, the selection process and the financial compensation you may receive in the UK. If you’re being made redundant, you might be eligible for certain things, including:
- redundancy pay – up to 20 weeks pay – one week for every year.
- a notice period – up to 12 weeks pay – one week for every year.
- a consultation with your employer.
- the option to move into a different job.
- time off to find a new job.
You must be selected for redundancy in a fair way. For example, because of your level of experience or capability to do the job.
You cannot be selected because of age, gender or if you’re disabled or pregnant. If you are, this could be classed as unfair dismissal.
Being selected for redundancy
Your employer should use a fair and objective way of selecting you for redundancy.
Commonly used methods include last in, first out. This makes sense but it’s dangerous! Make sure it’s not discrimination so combine it with other criteria, such as.
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- disciplinary records, absence, performance,
- appraisal markings, skills, qualifications and experience.
You can always ask for volunteers (self-selection), as well.
An employer can make you redundant without having to follow a selection process if your job no longer exists. For example, if:
- your employer is closing down a whole operation in a company and making all the employees working in it redundant;
- you’re the only employee in your part of the organisation.
Your employer may offer you a different role if one is available.
Redundancy pay
You’ll normally be entitled to statutory redundancy pay if been working for your current employer for 2 years or more.
- Half a week’s pay for each full year you were under 22: £269;
- One week’s pay for each full year you were 22 or older, but under 41: £538;
- One and half week’s pay for each full year you were 41 or older: £807.
Length of service is capped at 20 years. The maximum statutory redundancy pay you can get is £16,140 but don’t forget to add in the notice pay, if they are not working their notice.
Facing redundancy and need expert advice? At People Matters HR, we offer comprehensive HR support through services such as change management and organisational development. Contact us for tailored solutions.