Redundancy.. a guide to your rights
All you need to know if your employer is cutting back and making staff redundant
THE pandemic continues to hit the economy hard and with a drop in demand for many goods and services, companies are tightening their belts in an attempt to stay afloat. That means they are shedding large numbers of staff.
Thousands of people have been made redundant or are at risk of redundancy and many don’t have a clue what their rights are or how this process is supposed to work.
We’ve teamed up with Hayley Marles, senior associate solicitor at the legal firm DAS UK group, to help answer some of your redundancy questions. What is the legal minimum a company should pay an employee who is being made redundant? This will depend on your age, how long you have worked at the organisation and your gross weekly wage.
If you were made redundant on or after April 6, 2020, the amount of gross weekly statutory redundancy pay is capped at £538 and the maximum statutory redundancy pay you can get is £16,140.
In addition, your employer must provide you with either payment in lieu of your notice period – if your contract of employment allows – and payment of any accrued and outstanding benefits, such as holiday. Can I challenge the amount offered to me as a redundancy payment? Yes. You can check your entitlement to a redundancy payment using the online payment calculator at gov.uk/ redundancy-your-rights/ redundancy-pay
If the amount of redundancy pay you are being offered is incorrect, or your employer does not provide you with payment of notice or accrued benefits, you can challenge this by starting a claim at an employment tribunal. I understand my employee rights are reduced if I have been employed at a company for less than two years. How are my rights affected? Yes, this is true. If you have worked for less than two years, you are not entitled to receive a statutory redundancy payment.
You are also not afforded protection under the Employment Rights Act 1996 to bring a claim for “ordinary” unfair dismissal. There are some exceptions to this rule, and the requirement for having two years’ service falls away when the reason for your dismissal falls into one of the exceptions.
For instance, if you are dismissed because you have been a whistleblower or because of being pregnant or on maternity leave, you can pursue a claim for “automatic unfair dismissal”.
In addition, if you have been discriminated against at work, there is no requirement to have two years’ service before you can bring a claim to the employment tribunal. I believe I’m being singled out for redundancy as I have had previous issues with my employer. Can I challenge any decision to make me redundant? In short, yes, you can challenge the decision to start the redundancy consultation process if you consider there is no basis for it. You can do this by raising a grievance.
If your employer doesn’t have a grievance policy, you can consult the ACAS website at acas.org.uk and review the ACAS Code of Practice about to how to start this process and to understand how your employer should reasonably react.
If you are selected for redundancy and are subsequently dismissed, while technically you do not have to be given the right to appeal against the dismissal, it is advisable to raise an appeal and set
If you feel you have been treated unfairly, raise a grievance with your firm
out your reasons why you consider the process of arriving at your selection was unfair.
If your appeal fails and you consider you have been selected unfairly, you can pursue a claim via an employment tribunal.
You must start the clai process by contacting ACAS begin the ACAS early conciliat process within three months one day of the date that y employment ended.
I think I am being treated unfairly – how do I raise this and who should I contact?
If you feel you have been treated unfairly, you should raise a grievance directly with your employer to establish whether your concern can be resolved without the need for litigation. If your
The maximum statutory redundancy pay you can get is capped at £16,140
grievance is not resolved to your satisfaction and you continue to be of the view that you are being treated unfairly, you should take legal advice on whether you may have an employment tribunal claim.
I have legal expenses insurance as part of my home insurance policy. Can I use this product to legally challenge my employer’s plans to lay me off?
If you have a legal expenses insurance policy, you should contact your insurer to inform them of the situation at work as soon as possible.
If you do not notify your insurer of the issue straight away, this could jeopardise the legal expenses insurance cover and it could also mean you are unable to get advice and support as quickly as you might need it.
Most legal expenses insurance companies will want to discuss the circumstances of your case with you in detail as early as possible to provide support and assess whether you may have a claim to pursue.
What protection does my legal expenses insurance policy provide me with?
It enables you to have quick access to support and advice via a legal advice helpline, which is open at all times.
If the matter cannot be resolved or you wish to bring an employment tribunal claim, providing that the prospects of your claim stand a reasonable chance of succeeding at tribunal, your policy will give you the ability to receive independent legal advice and representation from a team of specialists in employment law.
What are my rights if my employer offers me another job?
If during the redundancy consultation process your employer offers you an alternative job, you are entitled to work for a trial period to establish whether the alternative role is suitable for you.
If, at the end of the trial period, you consider the role unsuitable, you will still be entitled to your statutory redundancy payment.
Such a trial period usually runs for four weeks but it can be extended.
You need to take care to ensure that any extension to the initial trial period for the alternative role is followed up in writing to ensure that there is no assumption that you have accepted the role at the end of the initial period.
If you don’t do this, it could result in your employer concluding that you have accepted the alternative role, and you would then lose your right to redundancy pay.
I am being made redundant during a probationary period and I feel I am being treated unfairly. Can I challenge the decision?
If you have been working for an employer for less than two years, unless your contract states otherwise, you are not entitled to a redundancy payment.
You can challenge the decision, but such appeals rarely prove to be successful.