Redundancy

Redundancy is a common way employers let their staff go to manage workloads, cut costs and make changes to their business. There are many genuine grounds for redundancies but when handled badly, you may have a claim for unfair dismissal.

If you have lost your job through redundancy you might be entitled to statutory redundancy pay if you meet certain eligibility requirements. If you believe that your employer acted unfairly, you might be entitled to additional redundancy compensation for unfair dismissal. Your claim could challenge the existence of a redundancy situation or the procedure used by your employer to choose who to make redundant.

Contact our team of redundancy solicitors today to discuss your case or read on to see if you could make a redundancy claim against your employer.

Can I make a redundancy claim?

If you are let go from your job for the reason of redundancy, your employer must have followed the correct procedure. If they fail to do so it could mean that you have been unfairly dismissed and you may be entitled to compensation for unfair dismissal as well as statutory redundancy pay.

What counts as a fair procedure will differ in each redundancy case. However, your employer should consult with you before announcing your redundancy to discuss:

• Ways to avoid the redundancy.
• How employees at risk of redundancy will be selected.
• The criteria and scoring used to decide who will be made redundant.
• Potential suitable alternative employment within the employer or any associated employer.

Should this not have taken place, you may have grounds for a redundancy claim against your employer.

Redundancy notice periods

If you are selected for redundancy, you should be paid for your notice period and any accrued holidays. Your notice period should be at least:

• One week if you were employed for less than two years.
• One week for each year you were employed after two years up to 12 years.
• 12 weeks if you were employed for more than 12 years.

Your employer should also give you a reasonable period of time off to look for alternative employment if you have been with the business for more than two years.

Redundancy selection process

Employers must implement a fair procedure to decide who to make redundant in their business. A fair selection process should include your employer considering:

• That they have identified a reasonable pool of employees to choose the redundances from or whether you are the only person working in that area of the business.
• Whether it is fair if the last person to join the business is made redundant.
• Whether the disciplinary and work histories of all employees has been conducted fairly and been considered.
• Whether you lack the relevant experience or capability for your role.
•  Whether your qualifications and experience make you suitable for a new role within the business.

Unfair redundancy dismissals

A redundancy dismissal may be automatically unfair for certain reasons. Women selected for redundancy due to pregnancy or maternity will have an automatic claim for unfair dismissal.

Redundancy might also be unfair because:

• There was no genuine redundancy situation.
• The employer did not consult.
• The employer did not offer alternative employment.
• The employee was unfairly selected for redundancy.

If you were picked for redundancy based on an unfair selection process you might be able to make a redundancy claim against your employer. For example, you may have grounds for an unfair redundancy dismissal claim due to discrimination if you were chosen because of your:

• age;
• race;
• gender;
• disability;
• religion.

Another instance would be if your employer has previously failed to follow the correct disciplinary guidelines; or you have been a whistleblower or are a member of a trade union, and your employer uses this to unfairly dismiss you.

Where an employer proposes to make more than 20 or more people redundant, this is a collective redundancy and special procedures apply.

Redundancy compensation

If you feel you’ve been unfairly treated through a redundancy procedure, we may be able to help you secure compensation.

Our redundancy solicitors can assist with a variety of claims associated with redundancy, including:

• Redundancy pay – Every employee with a business for at least two years is entitled to statutory redundancy pay based on your age, number of weeks’ continuous employment, and current salary. Use the government’s redundancy calculator to see if you’re eligible to receive more than your employer has offered.
• Discrimination – Your employer must act fairly, consistently and objectively when deciding who to make redundant. If you believe you were selected because of your age, gender or race, being pregnant or on maternity leave, you could be entitled to compensation.
• Unfair selection – If you were chosen for redundancy because you are a member of a trade union or have been a whistleblower, you could make a claim against your employer.
• Consultation and notice period – You must have had a consultation process with your employer and received a fair notice period for redundancy. Where this wasn’t the case, get in touch to see if you could make a claim.

We may ask you to provide evidence of your redundancy dismissal, such as any letters, emails, other communication between you and your employer and your redundancy payslip.

The amount of redundancy compensation you could receive from your claim will depend on the specifics of your case.

How to make a redundancy claim

There is no minimum length of service requirement for automatically unfair redundancy dismissals (eg for pregnancy and maternity) or to bring a discrimination claim against your employer relating to the selection process.

The time limit to make a claim for redundancy based on unfair dismissal or discrimination is within three months from the date you were released. For a claim about a redundancy payment, the time limit is six months.

Call or email to speak to a specialist redundancy solicitor within our employment team for a free consultation. They will listen to your case, advise on whether you have a claim and discuss the next steps you can take.

The work we do

We have successfully secured compensation for employees who have faced unfair dismissal, discrimination or unreasonable disciplinary action from their employers.

Find out more about our employment services and meet our team of highly qualified redundancy lawyers.