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REDUNDANCY
Our employment solicitors here in Central London have substantial experience of giving advice on redundancy to employers and employees alike on the redundancy process. We’ve helped scores of people get better settlements to help them and their family plan more securely for the future and we’ll explain the issues in a clear friendly manner.
Employers
often get the redundancy process wrong, exposing themselves to
unnecessary claims. We will help employers get the process right,
treating employees lawfully, fairly and consistently.
What
is Redundancy?
Examples of what CAN BE a real Redundancy Situation:
Examples of what IS UNLIKELY to be a real Redundancy Situation:
Who
should the employer select redundancies from?
The
employer should first of all consider the ‘pool’ of employees who they
may wish to make redundant. There are several methods of achieving
this. The employer should not tailor the pool of potential redundancies
to encompass the people it has already decided should be made
redundant. In other words the process should not be pre-judged,
What
is consultation on redundancy?
Duty to Consult: Before making any decision with respect to
redundancies, the employer has a duty to consult with the employees who
may be affected.
Length of Consultation: This is not specified by statute (unless 20 or more employees are being made redundant), but unless there are exceptional circumstances, this should be a reasonable length of time, or at least one week. It should consist of at least one meeting with the employee, plus giving the employee the option of a further meeting at the end of the consultation period.
Object of the Consultation Process: The consultation is to include ways of avoiding the redundancy situation or dismissals, or of reducing the number of dismissals involved and mitigating the effects of the dismissals.
The legislation does not require agreement to be reached but the employer must consult in 'good faith' with a view to reaching agreement.
What
criteria can the employer rely on to select people for redundancy?
It is essential to ensure that objective criteria are applied and to
demonstrate how those objective criteria have been used. This may be on
the old fashioned 'last in first out' principle, or it may be on a more
sophisticated score card system. Employers should not decide who to
dismiss in advance, and then seek to justify it after the event.
Suitable
alternative vacancies?
During the notice period, it is essential for the employer to consider
the employee for any suitable alternative vacancies within the
organisation, or the group of companies if applicable.
The
right to appeal?
It is essential for the employer to give the employee the right to
appeal the decision to dismiss him or her. Failure to do so may render
the dismissal unfair. Ideally the appeal should be heard by a more
senior manager, unconnected with the original decision.
What
is the employee’s right to a statutory redundancy payment?
Each employee who has two or more year's service has the right to
receive a statutory redundancy payment on termination of employment. If
the employee has been working between the ages of 21 and 41, the
entitlement is a weeks pay (subject to a statutory cap) times full
years worked. There is a multiplier of 1.5 for years worked over the
age of 41. Call us today on 0207 324 6271 for an exact calculation.
What
is the employee’s statutory right to notice?
Each employee has a statutory right to receive notice as set out below:
Do
employers have to give enhanced redundancy packages?
Employers frequently opt to offer enhanced redundancy packages but they
are rarely obliged to do so.
Reculver Solicitors is regulated by the Solicitors Regulatory Authority. Principal: James Carmody. Consultant: Carol Aylott. Serviced office. Meetings by appointment only.