Redundancy – what are your rights?
Hopefully you won’t need any of the advice in this blog written by Geldbergs Solicitors, but this kind of information is always useful to know.
Over the last 2 and a half years it has been impossible to ignore the fact that Britain has been part of a worldwide recession. Failing businesses on all scales have caused the inevitable cut-backs, and redundancies have been all too common. But what does this actually mean for employees and what are your rights?
This is when you are losing your job because your post is no longer needed. In law, a genuine redundancy situation is where:
1. A business closes down
2. A workplace closes
3. Or there is less need for employees to carry out specific work (either across the business or in a specific location).
My job is at risk of redundancy, so now what happens?
In addition to a genuine reason, an employer must have followed a fair and proper procedure. Firstly, the employer must warn those who are at risk of redundancy. The employer must then consult with you on why the redundancy is being considered, together with any alternatives to losing your job. This is where you get a chance to have your say and make suggestions to avoid redundancy, such as reducing your hours, relocating or taking a pay cut, for example. You should try and think of other options that you want your employer to consider, and discuss these with them.
The rules are slightly different if you are part of a ‘collective’ redundancy where there are 20 or more redundancies planned in 90 days. Here Trade Union or employee representatives are elected and the employer consults with them rather than with individuals. If this is not carried out properly, a tribunal can order a ‘protective award’ to be paid to those employees affected.
Following consultation, your employer will then select a ‘pool’ of employees for redundancy. For example, this could be all employees at a particular branch or all Sales Managers. There can sometimes be a pool of just one employee if their role and location is unique, but this is not very common. Those in the pool will be compared to each other using a set of criteria, and your employer will apply scores, and those at the lower end will be selected for redundancy. Ideally, your employer will have consulted with you about what criteria will be used, and will set fair and objective criteria to measure everyone against.
If it is decided that you are selected for redundancy, then your employer must offer you suitable alternative employment, if it is available. This is a bit of a minefield, because if you turn down an alternative role and it was not reasonable to do so, you may forfeit your entitlement to your redundancy payment. You are also entitled to 4 weeks trial in the new role to see if it suits. There are special rules for people on maternity or paternity leave, who have first preference on any suitable available jobs with the employer.
You might be offered a voluntary or an enhanced redundancy package, and if so your employer will probably require you to sign a compromise agreement waiving your rights to sue them in return for the increased financial package. You will need to seek advice from an independent legal adviser, such as a solicitor to ensure that the agreement is binding.
I don’t agree that my position was actually redundant and /or my employer did not follow a fair procedure – What claims can I bring in the Employment Tribunal?
You can bring a claim for Unfair Dismissal in the Employment Tribunal, but you must do so within three months less one day from your date of dismissal. It is a good idea to talk to your colleagues and find out what they are doing, and if possible join your claims together.
Making a claim can be tricky and it is advisable to seek legal advice. Check your home contents insurance policy to see if you have legal expenses insurance to cover the cost of this.
Redundancy can be a very stressful process, particularly since you have little control over the outcome, and your livelihood is at risk. It usually helps if you are looking for a new job or venture at the same time as you can focus on being positive and working towards achieving your goals. This puts some of the control back in your life. Furthermore, if you do bring a tribunal claim, you are expected to reduce your loss of earnings as much as you can by finding alternative work.
Gelbergs Solicitors is based in Islington, London N1 and offers a comprehensive legal advice to employees. They would be happy to hear from any employees who are facing redundancy, have recently been made redundant, or who have been offered a compromise agreement. Call them on 020 7226 0570 and ask for Emmajane Taylor-Moran or Jane Manville. Their website can be found at www.gelbergs.co.uk and twitter at @gelbergs.
