How to cope with redundancy

Knowing your rights

If you are facing redundancy, you are not without rights if the worse happens. Here is a guide to some key issues you should be aware of:

You can only be made redundant if the following occurs:

• the whole of the business you are working in closes;
• the particular part of the business where you work closes;
• the particular business location where you work closes; or
• fewer employees are required to do the work which you carried out.

If any of the above factors apply, your employer may be able to make you redundant.

You should also be notified in writing that you are at risk of redundancy and you have a right to be consulted by your employer, before you are made redundant. The consultation may involve several meetings with your employer to discuss:

• the reason for the redundancy;
• any proposals to avoid the redundancy, for example reducing your hours or considering a sabbatical to save costs.
• the way in which the relevant pool of individuals has been compiled;
• the criteria used to select for redundancy;
• how the criteria will be measured, ensuring the criteria are fair and objective;
• in due course, how the criteria was applied to you, giving you an opportunity to challenge your selection;
• available vacancies within the business that you might be able to apply for - anyone made redundant should be considered for vacancies and if you are on maternity leave, you are in a special position in that you must be offered a suitable alternative if it is available, before it is offered to anyone else.

If the axe does fall

If you find out that you are being made redundant, you should be notified in writing of the decision, and should be given a right of appeal.

You also have certain basic financial entitlements. You are entitled to:

• Your notice pay, or a payment in lieu of notice unless you are required to work out your work - you may need to check your contract to find out how much notice you are entitled to. If you have no written contract or notice entitlement, then you are usually entitled to statutory minimum notice, which is one week's notice for each year of service up to a maximum of 12 weeks.
• Payment in lieu of any accrued but untaken holiday, as at the termination date; and
• a statutory redundancy payment, if you have been working for the organisation for at least two full years. This payment is calculated according to your length of service, weekly pay (subject to a cap of £350) and your age. In many instances employees are offered enhanced packages but this is down to each individual employer.

Possible claims

Should any employee suspect that their employer has not followed the above procedures correctly they may have grounds to pursue a complaint in the Employment Tribunal.

Unfair dismissal claims must be brought within three months less one day of being dismissed and if you think you have been discriminated against, you should lodge your claim within three months less one day from the date of the last discriminatory act (which is usually the termination date).

For a claim for your statutory redundancy pay, this must be made within six months' less one day of the termination date.

However, for anyone who feels they may have been treated unlawfully it is important to seek specialist advice as soon as possible as you will usually be best advised to raise your complaint with your employer internally, before progressing to the Tribunal.

Richard Macmillan is a solicitor in the Employment team at Russell Jones & Walker - www.rjw.co.uk

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