Redundancy Rights

Overview

Redundancy is a form of dismissal from your job. It happens when employers need to reduce their workforce because a job or jobs are no longer needed. However, if you lose your job and they get someone into fill that is not a redundancy…

Common Reasons for Redundancy

There are lots of reasons why you might be made redundant, and they usually aren’t a reflection on your ability to do the job…

• New technology has made your job unnecessary
• The job you were hired to do no longer exists
• Your employer needs to cut costs by reducing staff numbers
• The business is closing down or moving
• The business has been bought by another company

Redundancy Rights

If you’re being made redundant, you 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

You must be selected for redundancy in a fair way, for example because of your level of experience or capability to do the job.

Being selected for Redundancy

Your employer should use a fair and objective way of selecting you for redundancy.

Commonly used methods are:

• last in, first out (employees with the shortest length of service are selected first)
• asking for volunteers (self-selection)
• disciplinary records
• staff appraisal markings, skills, qualifications and experience

Your employer can make you redundant without having to follow a selection process if your job no longer exists, for example if:

• your employer is closing down a whole operation in a company and making all the employees working in it redundant
• you’re the only employee in your part of the organisation

Your employer may offer you a different role if one is available.

If your employer uses ‘last in, first out’, make sure it’s not discrimination, for example if it means only young people are made redundant.

Unfair Selection
You cannot be selected for the following reasons – your redundancy would be classed as an unfair dismissal:

• gender
• marital status
• sexual orientation
• race
• disability
• religion or belief
• age
• health and safety activities
• working pattern, for example part-time or fixed-term employees
• maternity leave, birth or pregnancy
• paternity leave, parental or dependants leave
• you’re exercising your statutory rights
• whistleblowing, for example making disclosures about your employer’s wrongdoing

Notice Periods
You must be given a notice period before your employment ends.

The statutory redundancy notice periods are:

• Three months’ notice with full payment, which will give you enough time to settle back and find out another job.

Consultation

You’re entitled to a consultation with your employer if you’re being made redundant. This involves speaking to them about:

• why you’re being made redundant
• any alternatives to redundancy

Suitable alternative employment

Your employer might offer you ‘suitable alternative employment’ within your organisation or an associated company.

Whether a job is suitable depends on:

• how similar the work is to your current job
• the terms of the job being offered
• your skills, abilities and circumstances in relation to the job
• the pay (including benefits), status, hours and location

Your redundancy could be an unfair dismissal if your employer has suitable alternative employment and they do not offer it to you.

If you’re an employee who has worked continuously for an employer for at least two years and you are being made redundant, you have the right to redundancy pay. If you’re faced with redundancy; your employer must treat you fairly and act in accordance with your contract and legal redundancy rights. That includes making sure you’re consulted, following the right selection process and giving you a proper notice period. If not, then you could have a claim for unfair dismissal, or claim compensation for lack of consultation.

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