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A redundancy occurs when you’re dismissed from your employment because your employer’s business requirements have changed in some fashion (specified below). If you are made redundant then your redundancy should be fair and you should be paid at least the statutory minimum redundancy pay.

What is redundancy?

A redundancy situation exists where:-

  • an employer’s business, or part of the business, has ceased to operate; and/or
  • the business has moved to a different place; and/or
  • the needs of the business for work of a particular type to be done has ceased or diminished.

Examples of redundancy situations

Among others:

  • If your employer becomes insolvent and decides to close your workplace; or
  • If the demand for the product that you make suddenly decreases in the UK and your employer decides to move your department to another country; or
  • Your employer decides to stop producing the product that you make altogether

How to deal with a redundancy situation

Prepare yourself properly

This is the most important thing – make sure that you’re aware of your rights and how the redundancy procedure should be properly conducted. Start writing a diary of what’s happened and the date that each stage took place on.

How should my employer handle my redundancy?

Your employer must follow a relatively set dismissal procedure before making a redundancy.

If you are at risk of redundancy, you are entitled to a written statement, explaining why you are being considered for redundancy. You should also have a meeting with your employer to discuss the proposed redundancy, as well as the opportunity to appeal.

Your employer must use selection criteria that are fair, objective and non-discriminatory. You should also be considered for alternative employment within your employer’s business.

If your employer does not follow the proper procedures, any dismissal will be an automatically unfair dismissal and you may be entitled to compensation.

Statutory redundancy pay

Am I entitled to receive statutory redundancy pay?

You qualify for a statutory redundancy payment if:

  • You’ve got two year’s continuous employment; and
  • You’re an employee; and
  • You’ve been made redundant

How much redundancy pay should I receive?

If you are made redundant, you should be entitled to redundancy pay. The amount of a statutory redundancy payment depends on:-

  • how long you have been in employment; and
  • your age (see below); and
  • your weekly pay (see below).

Statutory redundancy pay is worked out as follows:-

  • 1½ week’s pay for each complete year of employment when the employee was aged between 41-64 inclusive
  • 1 week’s pay for each complete year of employment when they were aged between 22-40 inclusive
  • ½ week’s pay for each complete year of employment when they were aged between 18-21 inclusive.

Your contract may provide for redundancy payments at a higher rate.

What if my employer can’t or won’t pay me redundancy pay?

If your employer can’t or won’t pay you the redundancy pay that you’re owed then you can make a claim to the National Insurance Fund using form RP1.

  • Click here for an explanation of when and how you can claim statutory redundancy pay from the National Insurance Fund

What should I do if I think my redundancy was unfair?

  1. Get specialist legal advice on your situation: you should try and seek specialist legal advice from an employment lawyer (who often offer free consultations) or from an advisory service (such as ACAS or the Citizens Advice Bureau)
  2. Submit an appeal to your employer: this is, if possible, an absolute necessity. If your redundancy was unfair and you make a strong case to your employer then there is the possibility of your being reinstated. Further, if you submit a claim for unfair dismissal in the Employment Tribunal without having appealed then this will almost certainly be pointed out by the other side
  3. Submit an Employment Tribunal claim: you can submit a claim for unfair dismissal and unpaid redundancy pay (if relevant) by sending a completed ET1 form to the relevant Employment Tribunal

How to get advice on your redundancy situation

Direct 2 Lawyers offer free, impartial advice on your constructive dismissal claim. Call 0845 544 1395 to talk to a qualified expert employment lawyer now.

Alternatively, there are a number of sources that you can get advice on constructive dismissal claims from:

  • Advisory Conciliation and Arbitration Service (“ACAS”) – www.acas.org.uk
  • Citizen’s Advice Bureau – www.citizensadvice.org.uk
  • Speak to your Trade Union
  • Speak to a specialist employment lawyer – call Direct 2 Lawyers on 0845 544 1395

How to submit a claim related to your redundancy

You can either submit a claim for unfair dismissal by yourself or instruct a specialist employment lawyer to do so on your behalf.

[service title=”Submit a claim yourself” icon=”http://www.direct2lawyers.co.uk/wp-content/uploads/2012/08/warning1_48.png” size=”32″]How to submit an unfair redundancy dismissal claim yourself to the Employment Tribunal

Read more about submitting a claim yourself

[/service] [service title=”Instruct a specialist lawyer” icon=”http://www.direct2lawyers.co.uk/wp-content/uploads/2012/08/warning1_48.png” size=”32″]How to instruct a specialist employment lawyer to submit a claim for you

Read more about instructing a specialist


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