What is Redundancy?
Redundancy takes place when an employee’s role becomes redundant to the requisites of the business in which they are employed, and as a result, they are dismissed by the employer.
This can happen for a variety of reasons, such as:
- Your employer has decided that they need to reduce their workforce
- Your employer is moving to another location or the company is closing down
- Your employer needs to restructure the business, which means that your role is no longer required
Statutory redundancy pay
You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.
- half a week’s pay for each full year you were under 22
- one week’s pay for each full year you were 22 or older, but under 41
- one and half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years.
If you were made redundant on or after 6 April 2021, your weekly pay is capped at £544 and the maximum statutory redundancy pay you can get is £16,320. If you were made redundant before 6 April 2021, these amounts will be lower. Find out more information here
If your employer has an enhanced scheme in place, then they will have to abide by the terms of this scheme. Also, take into consideration that your employer will deduct tax and National Insurance contributions from any wages or holiday pay they owe you.
Dismissal by way of redundancy
For any dismissal to be fair, your employer has to follow a fair procedure – there has to be a fair process, adequate consultation and consideration of alternative roles.
If you believe you have been unfairly dismissed by way of redundancy, you have to have at least two years’ service and any claim must be made within three months less one day of the date of your dismissal. You will also have to start a procedure known as the Early Conciliation Process via ACAS before you can lodge a claim.
I have been made redundant. What can I do?
Contact us now to find out your rights when being made redundant.
Contact our employment law solicitors now for further redundancy advice and to discuss how we can help you by using our online contact form and we will call you back or you can call our specialist employment law solicitor, Karin Henson directly on 0121 392 7479.