Redundancy – Know your rights

15 January 2020
The New Year can be an exciting time for all, however, for those who are affected by redundancy this can be a difficult and challenging time.
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Below is a brief outline of your employment rights when facing redundancy.

Redundancy explained

Redundancy is when your employer is reducing the size of the workforce as a job or jobs are no longer needed and you are compensated as a result.

Who is eligible?

You must have had two years continuous service to qualify for the statutory minimum redundancy pay. 


Where an employer fails to follow a good industry practice, this may amount to an unfair dismissal. So, it is vital to know what steps must be taken.

Firstly, your employer must have given you as much warning as reasonably possible. 

Secondly, it is good practice for your employer to consult a Trade Union if there is one, before issuing redundancy to ensure that there has been a fair selection process. But if 20 or more employees are being made redundant, this becomes a mandatory provision. 

Next, the selection process should remain objective by ensuring that a non-bias, non-discriminatory process has been followed e.g. pregnancy or previous Trade Union activity. 

Finally, where possible your employer should seek to offer you alternative employment within the workplace.


How redundancy pay is calculated

If you meet the eligible criteria, at a minimum you will be entitled to a statutory redundancy payment. 

a)    For each year that you have worked under the age of 22, you will receive ½ a week’s gross pay;
b)    For each year that you have worked over the age of 22 but under the age of 41, you will receive 1 week’s gross pay;
c)     For each year worked over the age of 41, you will receive 1 and ½ week’s pay.

But this is capped at 20 years continuous service and a maximum weekly pay of £525. The weekly pay cap can change each year.

It is always important to check your contract of employment and your redundancy to ensure that your employee rights and contract of employment are being fulfilled. 

If you think that you have been adversely affected or would like to discuss your redundancy further please do not hesitate to contact us for a free, non-obligation phone consultation with one of our employment specialists.