Know your rights if you are facing redundancy
A RECENT survey revealed that half of all working adults in the UK are worried about losing their jobs imminently.
It’s easy to feel a bit lost when whispers of job cuts start swirling around. After all, the decision often seems largely out of your hands. Many people turn to the internet to find out more about their legal rights, but be sure to stick to official sites.
I’ll be putting together a range of tips and rights guides for anyone worried about losing their job on the Resolver website too.
The Government has a guide to the process of redundancy and how it works and your rights. It’s a good starting point if you don’t know where to turn (gov.uk/redundancy-your-rights).
Redundancy comes with all kinds of caveats, so there may be exceptions to your entitlements depending on what you do for a living, how you were dismissed and more.
HOW MUCH COULD I GET?
STATUTORY redundancy pay is normally given if you’ve been employed for two years or more. This is age based:
■ Employed when under 22: Half a week’s pay for each full year you worked.
■ 22 to Under 41: One week’s pay for each full year you worked.
■ 41 and over: One and a half weeks’ pay for each full year you worked.
Statutory redundancy is capped at 20 years and a maximum of £538 a week. You can calculate what you might be entitled to on the Government website gov.uk/calculate-yourredundancy-pay
Your employer may have a more generous redundancy package so check your contract. This is known as ‘contractual redundancy’.
There have been some reports in the news that people might only be paid their smaller, furloughed wage. I’ve spoken to a number of employment law specialists and the majority agree that your redundancy pay should be based on your normal wage, not your furloughed wage.
HOW MUCH NOTICE WOULD I GET?
Statutory notice periods are:
■ Employed from one month to two years: one week.
■ Between two to 12 years: One week for each year.
■ Over 12 years: 12 weeks Again, your employer may give you longer notice periods. You should be paid through the notice period too. If your contract says you can be paid ‘in lieu of notice’ that means they can let you go, but they still have to pay you during the notice period.
You may hear about ‘gardening leave’ too. This means you are not actually working for your employer, but you are legally still employed, which means you can’t start a new job during this period, you might be recalled and you have to stick to your work contract rules.
WHAT ABOUT HOLIDAYS?
YOU can take holiday during your notice period if your employer agrees.
They can also make you do this, but they have to give you two days notice for every day of holiday they want you to take.
So if you have seven days holiday they need to give you 14 days notice in advance of when they want you to take the holiday. Oh and any untaken holidays must be paid too.
WHAT IF YOU’RE ON MATERNITY/SICK LEAVE?
YOUR redundancy pay should still be based on your normal pay if you’re on maternity or sick leave. The business should ensure that you are involved in any consultation and decisions made about your job too.
WHAT NEXT?
KNOWING your rights gives you more time to prepare for everything from job hunting to planning your finances.
■ Get more help at the free Resolver website: resolver.co.uk