When making redundancies the employer must follow the appropriate selection process. A few considerations to think about include;
Employers that do not get the redundancy selection process correct are leaving themselves open to costly employment tribunal claims.
To qualify for a redundancy payment, the employee must have been continuously employed by the employer for at least two years at the date of dismissal. However, redundancy payments may not apply if an employee is dismissed for misconduct, if redundant employees refuse suitable alternative employment, or to fixed term workers who have renounced their redundancy rights.
Statutory redundancy pay is calculated with reference to the number of completed years’ service by the employee. The employee will receive:
An employer must give all employees a written statement showing how their redundancy pay has been calculated.
An employer has to consider the employee for suitable alternative employment if they are at risk of redundancy. Whether the alternative employment is suitable depends on the employee’s current job, the type of alternative job offered, salary, prospects, conditions and locations on offer.
An employee can still refuse to accept a suitable alternative and still be entitled to redundancy payment if their refusal is reasonable, e.g. due to health reasons, family commitments or other similar matters. If the role is suitable the employer does not have to pay the employee redundancy pay.
An employee is entitled to a trial period of four weeks in the new job role, during which time the employee can still leave and claim redundancy.
Making redundancies is not a decision that should be taken lightly, it can be very costly and there is a lot to consider. It is recommended that employers seek professional legal advice prior to beginning the process to ensure the correct procedures are followed and the best possible outcomes are reached.
Our employment team are able to provide the appropriate advice and guidance in relation to Redundancy. They offer no-obligation initial appointments and can meet you at our office locations in Market Harborough and Leicester. You can call the team directly via 0116 212 1000, alternatively complete our online contact form and we will get back in touch with you.
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