Redundancy Procedure


LINK 2 ADVOCATES provide a specialist overview of the redundancy process and will assist you during the process.

Redundancies and restructures are a common feature within business environments.

Section 139 (Employment Relations Act, 1996), which defines rights to redundancy pay, makes direct reference to an employee’s “place of employment” as the test for whether or not the dismissal is for redundancy.

LINK 2 ADVOCATES encourage an approach that support organisations with regard to a business reorganisation.  Guidance throughout a redundancy process may call for emotional support that we believe is essential within working environments.

In this sense when applied to employment law issues, it involves listening, supporting, encouraging and befriending. 

LINK 2 ADVOCATES will assist with the planning and the drafting of relevant documentation that can be managed effectively and quickly and is cost effective for the business.

Even if a dismissal may be for genuine reasons related to redundancy employers can find themselves being accused of unfair dismissal and facing claims for compensation if there is a recognized flaw in the process leading to the decision to dismiss an employee.

From April 2014, the Enterprise and Regulatory Reform Act 2013, gives Employment Tribunals the power to impose a financial penalty against employers that are in breach of employment rights where the breach has one or more aggravating features.

If the reason for dismissing an employee is based on the grounds of redundancy, the procedure will be scrutinised by the Employment Tribunal, in order to ensure that there has not been an abuse of the process by the employer if a complaint is raised by an employee.

Redundancy is a fair reason for dismissal; however the employee must be selected for redundancy in a fair way that is not significantly linked to discrimination, which would render the dismissal as being unfair.

If an employer is making fewer than 20 employees redundant in one establishment it is an individual consultation.

If an employer is making 20 or more employees redundant in one establishment within a 90 day period it is a collective redundancy.

Collective redundancies generally occur when there is a:

  • business or building closure, meaning the employer no longer needs as many employees;
  • reorganisation or reallocation of work;

 

Alternative employment

 

Employers must try to find suitable alternative employment within the organisation for employees they’ve made redundant.

Employees have the right to a trial period without losing the right to redundancy pay if they accept an alternative role.

If there are no alternative roles available, employees who are selected for redundancy must be given a notice period before their employment ends.

The statutory notice periods are:

  • at least one week’s notice if the employee has been employed between one month and two years;
  • one weeks notice for each year of employment between two years and 12 years;
  • 12 weeks notice for someone who has been employed for 12 or more years;

Employee should not be selected for redundancy because of age, gender, disability, race or pregnancy.

An employee, who has been made redundant, with a maximum of 20 years service, with the weekly pay subject to a upper limit, might be eligible for certain rights, including:

  • redundancy pay;
  • a notice period;
  • a consultation with your employer;
  • the option to move into a different job;
  • time off to find a new job;

The qualifying period in order for an employee to claim redundancy pay is continuous employment for at least 2 years. The employee would be entitled to get a statutory redundancy payment that is capped at £450 a week, as from 6th April 2014 this rate will increase to £464.

The employee will be entitled to;

  • 0.5 week’s pay for each full year of service while they were under 22
  • 1 week’s pay for each full year of service while they were 22 or older, but under 41
  • 1.5 week’s pay for each full year of service while they were 41 or older.

LINK 2 ADVOCATES provide a redundancy advice referral for employees as well as providing guidance and support for employers which bring extra experience for the client.

Whatever your requirement LINK 2 ADVOCATES will assist you.

 

 For an immediate response contact us:

Mobile Phone Icon mobile_phoneTelephone: +44 747 207 8979

 mailE-Mailadmin@link-2-advocates.com