The risk of being redundant may be an intimidating and unpredictable one. Yet, under the UK employment law, there are well-known procedures and protections to protect the employees. This is a complete guide on how redundancy works, what rights you are entitled to, and what to do in case your employer does not act in accordance with the law.
The following will provide a more in-depth account of redundancy law advice in the UK, such as eligibility, consultation, statutory redundancy pay, alternatives, and what to do in case you feel that you have been disadvantaged.
What is Redundancy?
Redundancy happens when your employer no longer requires your job role, which could be due to the closure of the business, the closure of the workplace, reorganisation, or the decline in the need for a particular type of work.
In these instances, redundancy dismissal is likely fair.
Who is Eligible to Enjoy the Right to Redundancy?
Redundancy rights are only automatically entitled to those individuals who have the legal status of an employee (not a casual worker, or a zero-hours contract, or an agency employee in most instances).
When the employer terminates you on a contract of a fixed period and does not renew it, this is not necessarily redundancy; you are terminated, except in the case that the employer terminates the contract prematurely due to redundancy.
Also, two years of unbroken service with the employer are typically required to be in a position to receive statutory redundancy.
Individual and Collective Redundancy: Employer Duty to Consult
Before your employer renders you redundant, he or she has to consult you. The consultation that is required is based on the number of planned redundancies.
- In case the number of redundancies to be made is less than 20 at a single establishment, the employer is to conduct a separate consultation with each of the affected employees.
- In the event of a proposal of 20 or more redundancies at a single establishment within 90 days, a collective consultation is necessary, including either representatives of the trade union or elected representatives of the employees.
The employer needs to tell them during the consultation why they are being made redundant, their reasons for selection, and what the alternative to redundancy (e.g., redeployment) and how they will handle it. There should be a chance to raise questions, suggest alternatives, or appeal among the employees.
The inability to conduct an adequate consultation may make a redundancy unjustifiable, allowing an employee to take action against an employment tribunal.
Redundancy Fairness and Non-Discrimination
In case of the requirement by your employer to select among employees, the selection should be objective, non-discriminatory, and fair. Widespread selection criteria are: length of service, skills and qualifications, attendance, and performance.
In case the choice made was discriminatory or not fair (e.g., the employer still requires someone to do the same job but under a new job title), then there might be a basis to claim. An example of a court case that depicts this is Safeway Stores plc v Burrell. Where the tribunal determined that the redundancy was unfair, it was that the need of the employer for employees had not actually reduced.
Statutory Redundancy Pay -Your Right
When entitled to statutory redundancy pay, you could claim the statutory redundancy pay as long as you have at least two years of uninterrupted employment.
It will depend on your age, length of service, and your weekly pay, and this will be computed as follows:
- One-half a year’s pay annually for less than 22 years of service
- Pay per month provided for one week of service between 22 and 41 years.
- Pay is one and a half years of service in excess of 41.
The weekly pay to be used in the calculations is also limited, and only up to 20 years of service is taken into account.
Note: statutory redundancy compensation is the minimum that is legally required – employers can provide higher or higher contractual redundancy compensation.
Also note: you are likely to lose your right to redundancy compensation when you choose without any reasonable cause to accept a different fitting form of work that is presented by your employer.
Right to Time Off and Notice Period
In the event of being made redundant, your employer should provide you with the proper notice. The legal minimum notice will be determined by your employment time:
- 1 month to 2 years of service: one week’s notice.
- Two to twelve years: one week’s notice annually of employment.
- 12 years or above: not less than 3 months’ notice.
Moreover, after being given notice of redundancy, you are entitled to a reasonable time to seek a new job or to organise training.
Suitable Alternative Employment -What It Means
Your employer can provide you with a suitable alternative job in place of redundancy. To be appropriate, the offer should be substantially equivalent, i.e., it should be of similar duties, terms, conditions, pay, and location (where possible).
In offering alternative jobs, the employers should take into account the skills and experience of the employees and their personal situations.
Is the Case of voluntary Redundancy the same?
Other times, employers can motivate voluntary redundancy (i.e., request volunteers) instead of compulsory redundancy.
Even voluntary redundancy remains subject to the employment law of dismissal, i.e., the same rights apply, such as redundancy pay; consultation and notice should there be an acceptance of the offer.
Practical Advice — What You Should Do When Redundancy Is Threatening
- Demand written confirmation – request your employer to explain in writing why your position is being rendered redundant.
- Check eligibility – confirm that you are eligible to get statutory redundancy pay (check employment status, continuous service, type of contract).
- Participate in consultation meetings – take this chance to ask questions, find an option, or appeal a wrong choice.
- Check any offer thoroughly – in case of an offer of voluntary redundancy or exit package,ensure that you have them written down and compare them with the statutory rights.
Overview: Your Rights Under the UK Redundancy Law
The UK has a law of redundancy that gives immense safeguards to workers whose jobs are at risk of being lost in the process of redundancy. When your employer does the right thing – having your fair consultation, proper selection, giving a notice, and the statutory redundancy pay – then a redundancy dismissal will be fair.
Otherwise, you can appeal the decision—either on the grounds of unfair dismissal or discrimination—after seeking proper redundancy law advice.
Knowing your rights, taking action, and keeping documentation would make sure you receive good treatment and (where needed) bring your employer to bear.
