REDUNDANCY

What is redundancy?

When an individual is made redundant, that individual has been dismissed from their job by their employer, normally for one of two reasons: 

1. Closure of the workplace 
2. Reduction of the work force  

What is statutory redundancy? 

Some businesses can provide you with a level of redundancy pay at their discretion – this means the payout you will receive is up to your employer. However, some businesses will only provide you with statutory redundancy; this means you will be entitled to the minimum amount of redundancy available by law. 

Voluntary vs Compulsory Redundancy 

How much redundancy pay am i entitled to?

According to UK employment law, you are entitled to statutory redundancy pay if you’ve been with your employer for more than two years. The amount that you receive depends on your age:

1. Half a weeks’ pay for each full year of employment in which you were under the age of 22.

2. One weeks pay for each full year of employment between the ages of 22 and 40.

3. A week and a half’s pay for each full year of employment over the age of 41.

The maximum amount of statutory redundancy pay is capped at £15,750. Your redundancy payout may be more than this, but that decision is at the employers discretion. If your total redundancy package is less than £30,000, it is tax free.

how can a lawyer help with your redundancy? 

You will need a lawyer for your redundancy if you believe your redundancy has been unfair or discriminatory. Generally, redundancies will only happen if the business really needs it, so if many employees are being made redundant then, unfortunately, it might just be bad luck.

However, if you believe that you have been specifically selected to be made redundant, then you have every right to question why.

Even when you are made redundant, your employer has a duty to follow the process correctly and not discriminate during the process. Your employer can use certain factors to look at their redundancies, but these can never be based on discriminatory factors (e.g. race, gender, or age)

This is where a lawyer will step in. If you have questioned your redundancy internally and are unsatisfied with the answer, a lawyer will be there to assist you. They will look at all the people who have been made redundant, and why. They will look at any supporting evidence and factors and see if you have a larger case on your hands. You will also be able to decide what you want with the help of your lawyer, for example if you want to take legal action against your employer or if you simply want your job back.