26 January 2021

Redundancy – everything you need to know

Why can my employer put my role at risk of redundancy?

Your employer can put your role at risk of redundancy and make you redundant if the job you are doing is no longer needed. This can be because:

  • Part or all the business is closing;
  • The location of the business is changing; or
  • There is a change in what the business is going to do or the way in which the business works is changing.

Does my employer have to follow a fair process?

Your employer should follow a fair process when considering redundancies and if they fail to do so, you may be able to bring a successful claim for unfair dismissal.

You cannot be made redundant due to poor performance or because you have raised a grievance about a work-related issue.

You cannot be selected for redundancy or your role be put at risk of redundancy based on a criteria that directly or indirectly discriminates against you for various reasons including your age, sex, race, religion, disability, sexual orientation, pregnancy or maternity leave, parental leave, working part time or being a member of a trade union.

I have been made redundant – can I appeal?

You can appeal against a decision to make you redundant if you think the reason you have been made redundant is unfair or the process that was followed was not fair.

I have been made redundant – how much notice should I receive?

If you have been made redundant, you are entitled to your statutory or contractual notice period. An employee is entitled to statutory notice if they have been employed for more than a month, the length of notice your employer must give you depends on how long you have worked for your employer.

Your contract of employment may provide for more notice than your statutory entitlement so you should check your contract.

I have been made redundant – what redundancy pay am I entitled to?

If you have been employed for two years, you are entitled to a statutory redundancy payment. The amount you are entitled to depends on your length of service, age and weekly pay.

I have been made redundant – can my employer offer more than statutory redundancy?

Yes, when making an employee redundant, an employer can offer their employees a redundancy payment which is more than their statutory redundancy entitlement. Often, if offering an enhanced payment, employers will ask employees to enter into a Settlement Agreement.

What is a Settlement Agreement?

A Settlement Agreement is a legal binding document that usually includes a compensation or ex-gratia payment which is over and above the employee’s statutory redundancy entitlement. The enhanced payment is offered in return for the employee agreeing not to pursue any claims against their employer.

 

Can I sign the Settlement Agreement without obtaining legal advice?

No, for a Settlement Agreement to be legally binding, an employee must receive independent legal advice on the terms and effect of the Agreement. The legal adviser must sign an Adviser’s Certificate to confirm that advice has been given.

How can we help?

We are currently offering telephone or video meetings to advise clients in relation to redundancy and Settlement Agreements.

If you have received a Settlement Agreement, employers will normally contribute towards the legal costs of obtaining legal advice in relation to the Settlement Agreements, the amount they will contribute should be confirmed in the Settlement Agreement.

If you need any help or advice, please get in touch with Jo Cullen or Chloe Baxter in our employment team.

our lawyers deliver an excellent quality service, independently recognised by The Law Society and our many returning clients.

important notice

Howell Jones solicitors continues to be open for business during the COVID-19 pandemic.

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