Redundancy and Handling Redundancies
What is Redundancy?
A redundancy situation arises where:
- An employer has ceased or is due to cease to carry on business.
- An employer is closing down the workplace where an employee has been employed.
- The needs of the business for work that the employee has been doing has reduced or disappeared or is expected to do so.
- The need of the business for the number of employees to carry out work has reduced or disappeared or is expected to do so.
For an employer to dismiss an employee fairly the employer must show that they had a valid reason for dismissing the employee – i.e. redundancy – and that they acted reasonably in treating that reason as a sufficient reason for dismissing the employee.
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Rights of Employees?
- Right to be consulted
- Reasonable periods of time off with pay to look for other work
- The right to be offered suitable alternative posts if any are available within the organisation
Redundancy procedures
What if we get the procedure wrong?
If formal procedures are not followed the employee could claim unfair dismissal if they have been employed for 2 years or more. In principle, redundancy is one of the ‘fair’ reasons for dismissal, but if an employer goes about handling the redundancy without following a fair and reasonable procedure the dismissal will be deemed to be ‘unfair’ and in some cases may be deemed to be automatically unfair.
There may also be the potential of a claim of discrimination being pursued by the employee if they feel that they have been selected by reason of a protected characteristic. The employee would not need any specific length of service. See more about discrimination here.
Redundancy Payments
Employees who have completed 2 years or more continuous employment will be entitled to a statutory redundancy payment. This is calculated with reference to their earnings, age and length of service. The longer an employee has worked for the employer the more redundancy pay they will be entitled to. An enhanced payment can be made by the employer if desired.
Redundancy Selection Criteria
Criteria such as ‘last in first out’ (LIFO), the future needs of the business, capability and performance of the employee in the past, and conduct can all be used when selecting staff for redundancy. However, it is essential to use criteria objectively and reasonably to be able to demonstrate that the selection process was fair.
Bhayani Law Redundancy Guidance Pack
We can provide you with a tool kit to assist you in undertaking redundancies and we can guide you through the process to minimise the risk of a tribunal claim.
Upcoming Events & HR Training for Employers
As experienced HR Advisors and Employment Law solicitors we see first-hand how HR issues can affect both the employee and the employer.
Our training is very well received by attendees and is delivered by lawyers and HR advisors, with combined knowledge and expertise, in a practical way which works for your business.
Bhayani Law clients and charities get discounts on our training and some of our training is available at discounted rates with public funding between 40-100%.
Our events allow you to meet other businesses and build your connections, so do book if you want to come along.
October Meet-Up and Networking: Employment Rights
Mums in Leadership For this month’s Mums in Leadership networking event we will be joined by Jay Bhayani, who will...
- 11:00am - 12:30pm
- October 3
Navigating Labour’s New Deal for Working People
About us We are an independent employment law firm established in 2014 to provide expert professional advice to help businesses...
- 11.00am - 12.30 pm
- June 18
Sexual Harassment Training – Half Day (Aimed at Line Managers and Leaders)
In October 2024, there will be a significant change in the law which puts thee responsibility on employers to prevent...
- 9:00am-12:00pm
- October 8
Equality, Diversity, and Inclusion Online Workshop – Extended Version Covering Sexual Harassment
The workshop is designed to be an interactive and informative session to equip all employees from junior members of staff,...
- 9:00am-12:00pm
- October 29
October Meet-Up and Networking: Employment Rights
Mums in Leadership For this month’s Mums in Leadership networking event we will be joined by Jay Bhayani, who will...
- 11:00am - 12:30pm
- October 3
Navigating Labour’s New Deal for Working People
About us We are an independent employment law firm established in 2014 to provide expert professional advice to help businesses...
- 11.00am - 12.30 pm
- June 18
Sexual Harassment Training – Half Day (Aimed at Line Managers and Leaders)
In October 2024, there will be a significant change in the law which puts thee responsibility on employers to prevent...
- 9:00am-12:00pm
- October 8
Equality, Diversity, and Inclusion Online Workshop – Extended Version Covering Sexual Harassment
The workshop is designed to be an interactive and informative session to equip all employees from junior members of staff,...
- 9:00am-12:00pm
- October 29
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