Redundancy: know your rights
Being made redundant can be a nerve-wracking experience. Find out what your rights are, so that you know what to expect should it happen to you
You can be made redundant if the job you were hired to do no longer exists. This could be because new technologies have been acquired, or that restructuring your department means that your role has disappeared.
Your employer has to select people for redundancy fairly, and you will be consulted about it. If the procedure is not fair, and you are made redundant unjustly, you may have a case for unfair dismissal.
Selecting people
There are many different ways of choosing people for redundancy. Your employer may ask for volunteers, or select the person with the shortest length of service (last in, first out). They may also take into account disciplinary records and staff appraisals.
Employers should always consult employees before making them redundant. They should also explore any alternatives to the redundancy as well as explaining why each person has been selected.
Redundancy payments
If you have worked continuously for your employer for at least two years, you're entitled to redundancy pay. The amount varies depending on how long you've been continuously employed, your age and your weekly pay. If you are younger than 22, you are entitled to half a week's pay for each complete year. Those aged between 22 and 40 are entitled to a full week's pay for each complete year, and those aged over 41 qualify for a week and a half's pay for each complete year.
Your employer must also give you notice. Again, this depends on your contract and how long you have worked somewhere, but the statutory minimum notice period is one week if you've been continuously employed for between one month and two years, and one week for each complete year (up to a maximum of 12) if you've been employed for two or more years. You do not pay income tax on the statutory redundancy payment.
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