Redundancy Solicitors for Senior Executives & Employees

Whether you’ve just been made redundant or recently found out about the risk of redundancy, we can help. For redundancy to be fair, you must have been fairly selected, provided a consultation period and offered any suitable alternative roles. If any of these elements have been breached, you may have been subject to unfair dismissal and entitled to additional compensation for loss of earnings.

Redundancy is a specific type of dismissal where a business has to let go of an employee or employees for economic reasons. It often creates an unsettling situation involving a business ceasing to trade, a workplace closing down or a need for the workforce to be reduced.

It is also subject to a specific legal framework that requires an employer making redundancies to follow a fair redundancy process, and also entitles employees being made redundant to certain employment rights. If the business does not follow the legal framework, you may have a discrimination claim for unfair dismissal.

If you require more information, please contact our expert employment team who are ready to provide you with legal advice. We understand that facing compulsory or voluntary redundancy can be daunting, and will use our vast knowledge and experience to help guide you through the process. 

100% Success Rate in Contentious Cases for both Employees & Employers

Contact our employment lawyers at 0207 9657203

or contact us online

The UK Redundancy Process for Employees

Redundancies usually occur when a job no longer exists, the workplace closes, work relocates or a new employer takes over.

Because dismissal is therefore wholly or partly attributable to the employer, the law requires that employers ensure the redundancy procedure is fair, which includes acting reasonably in dismissing the employee in all the circumstances.

Exactly what this means depends on the particular facts of the case, but there are some common steps all employers must take. These include:

  • Employee consultations

    Carrying out a consultation with employees, providing them with information on why redundancies are needed and any potential alternative employment options.
    This usually includes speaking directly to individual employees affected by the proposed dismissals, although exactly how this should be done and the time limits that apply vary depending on the number of redundancies the employer is proposing

  • Fair Selection Criteria

    Following selection criteria for redundancy that are objective, fair and consistent – the criteria may include matters such as skills, experience, aptitude, qualifications, attendance and disciplinary record, none of which should be considered isolation.

    Unfair selection criteria include things considered discriminatory; this includes age, disability, race, sexual orientation, marital status, religious beliefs, membership of a trade union, whistleblowing and more.
  • Establishing an appeals procedure

    Although there is no statutory right to appeal redundancy, it’s considered best practice to allow an employee selected for redundancy to appeal according to a specified policy.

If your employer fails to follow a fair procedure and you’re selected for redundancy, you may be entitled to claim unfair dismissal. Please contact us for more information, or read our article on when redundancy becomes an unfair dismissal.

What Redundancy Rights Are You Entitled To?

Whether the company is going under or restructuring, you may be entitled to certain rights, including the right to notice, time off work to find a new job and redundancy pay.

Redundancy Notice & Time Off

Employees selected for redundancy must be given a notice period before employment ends. How long the notice period will depend on the length of the employee’s employment.

  • For employees employed between one month and two years, the period is one week’s notice.
  • For employees employed over two years and up to 12 years, the period is one week’s notice for each year of employment.
  • For employees employed for 12 or more years, the period is 12 weeks’ notice.

Depending on your redundancy situation, you may also be entitled to a reasonable amount of pay in lieu of notice to find a new job and/or arrange training aimed at finding a new job. This entitlement only applies to those who have been employed for a minimum of two years by the date the notice period ends, and exactly how much time will be deemed reasonable depends on the circumstances.

Statutory Redundancy Pay

Employees with at least two years of continuous employment who are made redundant are entitled to a statutory redundancy payment, which may be enhanced depending on the implied or express terms of their employment contract.

The purpose of redundancy pay is to compensate an employee for the loss of a job, and the amount they will be entitled to depends on their age, length of service and how much they earned.

  • Insolvency or refusal - If an employer is insolvent or refuses to make the statutory redundancy payment, either in part or wholly, it’s possible to make an application to receive payment out of the National Insurance Fund.
  • Enhanced contractual redundancy payment - Some employees may be entitled to an enhanced contractual redundancy payment, depending on the terms of their contract of employment.
    If the contract or another document governing the employment relationship (such as a collective agreement) expressly sets out a redundancy policy, the employer is bound by its terms and must make an enhanced redundancy payment according to what is set out in the policy.
  • Implied redundancy terms - It may also be the case that redundancy terms are implied because they are common to the trade, industry or employer. In these circumstances, the employee will have to demonstrate that the incorporation of redundancy terms is a ‘reasonable, notorious and certain’ custom, i.e. well-known, fair and clear.

To find out how much you’re entitled to, use our statutory redundancy calculator.

 If you are not happy with your redundancy notice or pay, you are entitled to take your claim to an employment tribunal.

Contact Cavendish Employment Law for Redundancy Advice

Cavendish Employment Law Limited is a specialist employment law firm with a Head Office in London and leading redundancy lawyers throughout the UK. We’re experts in this complex and fast-moving area of law, with a well-deserved reputation for negotiating high settlement agreements that exceed our client’s expectations.

We have a high profile and track record in advising and representing senior employees across several industries including fund managers, senior insurance brokers, leading bankers, hedge fund managers, executive directors, middle managers, and ancillary staff.

If you have been made redundant or are worried about a potential redundancy, our employment law solicitors are ready to provide you with employment law advice. We will give you practical assistance aimed at ensuring you’re treated fairly throughout the process. Please contact us for more information.

100% Success Rate in Contentious Cases for both Employees & Employers

Contact our employment lawyers on 0207 9657203

or contact us online for a callback.

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Caroline Walker Managing Director
AWARD-WINNING EMPLOYMENT LAWYERS IN LONDON

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