Redundancy

 

Redundancy has, sadly, become an increasingly familiar aspect of today’s business environment, causing understandable stress for employees.

If you are potentially at risk of redundancy your employer must as a matter of law, follow a fair and proper procedure before terminating your employment. Your employer should advise you that you are at risk of redundancy and engage with you through a process of consultation to see if there is any alternative to the proposed redundancy. You should also be advised as to who else is affected (if anyone) and the criteria which are being used to determine who is to be made redundant. The period and method of consultation will vary depending upon how many employees are involved.

If you  have been told that your role is redundant you should be given the right to appeal against the decision. We would strongly recommend that you exercise this right even if you do not believe that your employer will reverse the decision.

If you have worked for less than two years with your employer you have no right to statutory redundancy pay and your only  legal entitlement is to your notice period or pay in lieu of notice any  accrued holiday pay.

For employees who have worked for more than two years you will either be paid statutory redundancy pay or, if your Company has a policy of providing an enhanced redundancy package, a payment calculated on the basis of the Company’s redundancy scheme. In addition to this payment you will also be entitled to your notice period or pay in lieu of notice and payment for any accrued but untaken holidays.

Some employers will use a Compromise Agreement to facilitate an employee’s departure these agreements are often used when a redundancy process is more complex or where share options, bonus and commission payments are involved. Compromise Agreements may also be used simply as a matter of course or where the redundancy process has been flawed.

Emplex lawyers have considerable experience in assisting individuals who are to be made redundant and advising on redundancy packages.

For  expert advice on how to handle a redundancy situation contact Emplex on 01753 583 222


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