Redundancy laws

Redundancy laws exist to ensure that redundancy is carried out fairly and for appropriate reasons. If your employer is talking about redundancies, you should get advice on redundancy from an employment solicitor. The Employment Rights Act 1996 defines redundancy as dismissal resulting from: 

• The cessation of work at the employee’s workplace
• The cessation or reduction of a particular kind of work
• The anticipation of a cessation or reduction of work of a certain kind

Once the need for redundancy has been identified, the employer must follow the compulsory dismissal procedure for redundancy. Firstly a letter must be sent to the employee(s) who are being considered for redundancy. The letter must invite them to a consultation meeting. At the consultation meeting the possibility of suitable alternative work within the business or organisation must be considered. Following the consultation process, which can consist of more than one meeting, the employee(s) can appeal against the employer’s decision.

If the employer still finds in favour of redundancy, the law states that the employee(s) must be given the correct amount of notice before their dismissal. The statutory minimum-notice requirement is one week for every year of continuous employment in the job. If the correct notice period is not given, the employee may have a claim for unfair dismissal.

Redundancy laws state that the employee(s) must be notified of the selection criteria for redundancy before they are dismissed. The selection criteria must be legitimate, and they must be fairly and consistently applied to all redundancy candidates. The selection criteria must not be directly or indirectly discriminatory, or the employee(s) may have a claim for unlawful dismissal. Examples of selection criteria allowed by redundancy laws include: performance, attendance, and length of service.

Redundancy pay is generally owed if the employee(s) have been in continuous employment for two years or more. Redundancy pay is calculated according to the length of continuous employment in the job and the age of the employee, amongst other things.

If you are worried about being made redundant, or are considering voluntary redundancy, it is advisable to seek an expert solicitor’s opinion and advice on redundancy laws and how they apply to you.

If you would like to obtain legal advice on redundancy laws, Contact Law can put you in touch with a local specialist employment / redundancy law solicitor free of charge. So, if you have any questions or would like our help in finding local employment / redundancy law solicitors please call us on 0800 1777 162 or complete the web-form above.

Last Updated on 27/10/2011