1. Can my employer make me redundant?
There are three possible genuine redundancy situations:
(a) closure of the business;
(b) closure of the employee’s workplace;
(c) a diminishing need for employees to do the available work or work of a particular kind.
Your employer must follow a fair process before dismissing any staff by reason of redundancy. Failure to follow a fair process may lead to a claim of unfair dismissal by those staff who have more than one year of continuous employment.
2. What process does my employer have to follow in making me redundant?
A fair redundancy process means:
• consulting with the potentially redundant staff at all stages of the redundancy process;
• considering staff for voluntary redundancy;
• identifying and consulting in relation to the relevant selection pool;
• consulting in relation to the objective selection criteria to be applied when selecting staff for redundancy; and
• considering suitable alternative employment.
3. Are there any other procedures to follow?
Until April 2009, your employer must also comply with the minimum statutory dismissal procedure. If this procedure has not been followed, the dismissal will automatically be unfair.
4. What if my employer is proposing to make 20 or more employees redundant?
If it is proposed that between 20 and 99 employees will be dismissed within a period of 90 days, the employer must consult with the “appropriate representatives” (representatives of a recognised trade union, or, if there is none, elected representatives) of the affected employees and with you over a minimum of a 30 day period..
Where it is proposed that 100 or more employees are to be made redundant within a period of 90 days, notification must be given to BERR at least 90 days before the first dismissal.
There are strict requirements as to the information which must be given to the representatives.
5. What if my employer has not followed the collective consultation procedure?
The duty to consult collectively is separate from the duty to consult individually. Failure to inform or consult over collective redundancies according to the statutory procedure gives rise to a claim for 90 days’ actual pay. In addition, if you have been unfairly dismissed, the failure to consult will have a bearing on the reasonableness of your dismissal.
6. Who is entitled to a redundancy payment?
An employee needs to have acquired two years’ continuous employment at the relevant date in order to qualify for a statutory redundancy payment. The amount of the statutory redundancy payment that an employee is entitled to receive will depend on his age, length of service and pay.
The maximum length of service which may be taken into account for the purpose of calculating redundancy pay is 20 years and the total amount of a week’s pay is also subject to a statutory maximum which is currently £330 (£350 from 1st February 2009).
For more information contact the BWB employment team.
