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Redundancy Lawyers for Employees & Executives

Redundancy is a specific type of dismissal where a business has to let go of an employee or employees for economic reasons. It therefore arises in what are often unsettling situations 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 rights.

Whether you have just been informed of the risk of redundancy or have actually been made redundant, we can help. For a redundancy to be fair, you must have been fairly selected, have been provided with a consultation period and be offered any suitable alternative roles that might exist. If any of these elements have been breached, it may result in your being dismissed unfairly, for which additional compensation for loss of earnings may be claimed.

Below we provide a brief overview of some the key aspects of redundancy relevant to employees and executives. If you require more information and would like to know how we can help, please contact our expert employment lawyers. We understand that facing redundancy, whether compulsory or voluntary, 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 on 02071674800 or contact us online. 

Overview of the Redundancy Process for Employees in the UK

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:

  • Carrying out a consultation with employees, providing them with information on why redundancies are needed and any potential alternatives - 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 amount of redundancies the employer is proposing
  • 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
  • Establishing an appeals procedure – although there is no statutory right to appeal redundancy, it’s considered best practice to give an employee selected for redundancy an opportunity 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 make a claim for unfair dismissal. Please contact us for more information.

Overview of Redundancy Rights for Employees

If you are selected for redundancy, 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 be depends on the length of the employee’s employment. For employees employed between one month and two years, the period is one week of notice. For employees employed over two years and up to 12 years, the period is one week of notice for each year of employment. For employees employed for 12 or more years, the period is 12 weeks of notice.

Some employees will also be entitled to a reasonable amount of paid time off work 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.

Redundancy Pay

Employees with at least two years’ 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 loss of job, and the amount they will be entitled to depends on their age, length of service and how much they earned. 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.

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. 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.

Contact our Redundancy Solicitors in London

Cavendish Employment Law Limited is a specialist employment law firm with a Head Office in London and leading employment lawyers throughout the UK. We’re experts in this complex and fast-moving area of law, with a well-deserved reputation for not only getting results for our clients but also exceeding their expectations.

We’re a City law firm with a high profile and an enviable track record in advising and representing employees from all parts of the employment spectrum, including fund managers, senior insurance brokers, leading bankers, hedge fund managers, middle-managers, and ancillary staff. If you’re looking for expert advice on a potential redundancy or have been made redundant, 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 02071674800 or contact us online.

 


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