Redundancy and Dismissal

If you are an employee and have been working for your employer for more than a year then you may be able to claim unfair dismissal because the selection procedures for redundancy were unfair.  To achieve the maximum compensation, you must be able to show that you have tried to mitigate your losses by, for example, applying for other jobs so you need to keep relevant paperwork.  You may be able to claim if you have been employed for less than a year if the redundancy was pregnancy related. Please contact us to discuss your specific circumstances.

Statutory redundancy pay is calculated with reference to the number of completed years’ service by the employee. The employee will receive:-

• 1½ weeks’ pay for each year in which the employee was over 41 years of age

• 1 week’s pay for each year in which the employee was over 22 but under 41 years of age

• ½ a week’s pay for each year in which the employee was under 22 years of age.

However, the maximum number of years which may be counted is 20. A week’s pay is also subject to a maximum figure and redundancy payments up to a specified level are exempt from income tax.

Currently statutory redundancy pay is £350 per week, however, this is rising to £380 per week from October 2009. 

An employer must give all employees a written statement showing how the amount of their redundancy pay has been calculated. An employee who does not receive their redundancy payment can make an employment tribunal claim within six months of the redundancy. Any claims after six months are at the discretion of the employment tribunal.  Please contact us to discuss your specific circumstances.

You can refuse the offered suitable alternative employment if the basis for your refusal is reasonable, e.g. due to health, family commitments or similar reasons.  You are entitled to a trial period of 4 weeks in the new job, during which time you can still leave and claim redundancy. If you wish to discuss your specific circumstances, please contact us.

If you have been offered an alternative job because your own job was at risk of redundancy, and you leave the alternative job within 4 weeks of being made redundant, you still can claim redundancy.  Please contact us to discuss your specific circumstances.

Last In First Out policies generally do disadvantage younger employees as they will generally have shorter service than older workers.  However, a younger employee made redundant through a last in first out policy will not necessarily have a claim for indirect age discrimination.  If an employer can show that the principle behind their last in first out policy was to reward their most loyal employees, the employer may be able to justify their policy.  If Last In First Out is one of several criteria, it is unlikely a claim for indirect age discrimination will succeed.  Please contact us to discuss your specific circumstances.

More employers are using Compromise Agreements when making employees redundant.  The compromise agreements protect the employer against the employees making employment tribunal claims for unfair redundancy procedures.

However, there are advantages for employees in signing a Compromise Agreement when being made redundant:-

• Certainty of a settlement sum,

• Terms agreeable to employee and employer,

• Confidentiality about the terms of the redundancy package,

• Ensures references given to future employers will be given with agreed wording,

• Your employer will pay for legal advice you require before signing the agreement so you can be confident your settlement package is fair and the terms of the Compromise Agreement are fair to you at no cost to yourself. 

If you've been asked to sign a compromise agreement, please contact us.

Unfair dismissal is where an employer has not followed statutory dismissal procedures in dismissing an employee, e.g. failed to allow an employee to be accompanied at disciplinary hearings, failed to make an adequate investigation or failed to consider alternatives to dismissal.  To bring a claim for unfair dismissal you must be an employee and you must have worked continuously for the employer for more than 12 months, although there are some exceptions, e.g. when the dismissal is for pregnancy. If you think you have been unfairly dismissed, please contact us to discuss your specific circumstances.

If you have resigned because your employer was in breach of your employment contract and that breach of contract was serious enough to make you resign, you may have a claim.  To bring a claim for constructive unfair dismissal, you need to be an employee and employed for more than 12 months and you must lodge a grievance with your employer and give your employer at least 28 days to respond.  If you do not lodge a grievance you may not be able to make a claim and if you are able to make a claim, any compensation will be reduced. Please contact us to discuss your specific circumstances.

If you have been employed for 12 months or more, are an employee and your employer failed to investigate the alleged discrepancies and failed to allow you a hearing, you may have a claim for unfair dismissal. Please contact us to discuss in more detail.

You need to raise a grievance with your employer first.  This may result in a solution to your problem.  If the problem is not resolved, then remedies available depend on what type of bullying you have experienced.  There is no specific legislation to protect employees from bullying, but you may have a discrimination claim.  Please contact us.