Your redundancy rights

Receiving news that your job is at risk of redundancy can be extremely worrying and confusing, and knowing your rights in such a situation is vital.

News of redundancy brings with it a genuine threat and overwhelming fear of losing your job in circumstances that you have little control over, which can be daunting.

Upon being informed your job is at risk your early thoughts are likely to be dominated by dread at being unable to pay the mortgage or rent, fear of inability to meet long-term financial commitments based on your salary, and to be able to afford the ever increasing cost of living.

Here we look at redundancy, what it is, what to expect, and we provide you with some essential information you need to know to ensure you are treated fairly and can get the best out of a bad situation if you find yourself in this position.

Why would I be told I am at risk of redundancy?

In a genuine redundancy situation there can be a number of reasons why you have been informed your job is at risk.

Redundancy is a form of dismissal from your job, which occurs when your employer has a legitimate reason to cut and reduce the number of employees it requires [1] cited 20.11.24

The need to make job cuts is often part of a wider effort to restructure, manage costs or to adjust and adapt to changing market conditions.

You can be made redundant if:

• The business is failing.
• The business, or part of it, has stopped operating (often called becoming insolvent or going bust).
• Your skills are no longer needed.
• Your work is being done by other people, after a reorganisation.
• The business, or the work you are doing, moves to another location.
• The business is taken over by another company

What happens if I am being made redundant for a reason other than the above?

It is certainly not uncommon for an employer to claim there is a redundancy situation when, actually, there is not.

Unscrupulous employers have been known to use redundancy as a quicker way to dismiss an employee under the guise their role is no longer required, when in fact it is not the case or real reason for dismissal.

A recent example involved the reported case of a paralegal, who could not work full-time due to her disability, and she was made redundant for being a part-time employee  [2] cited 20.11.24

The employment tribunal is reported to have found there was ‘no genuine redundancy situation’ adding ‘that the reason for the claimant’s dismissal was not because of redundancy but because she was part-time’.

There can be many reasons why an employer may no longer wish to work with an employee and attempts to use redundancy as an excuse to dismiss them unfairly e.g. the individual is disliked or is performing poorly, but the process to manage such issues fairly can take longer than the redundancy process.

Signs that your redundancy may not be genuine include: you are the only employee at risk of redundancy; your employer is recruiting; it happens quickly after a fallout of some type with a manager or after you have requested a change to your terms and conditions; or it is as a direct result of a protected characteristic such as your age, disability or race  [3] cited 20.11.24

It is why it is important that you understand the redundancy process and what to expect, which allows you to question and challenge it if you believe it is being used unfairly.

How does redundancy consultation work and what are my rights?

Consultation can vary depending on the number of employees at risk and scale of the changes the employer wishes to make.

In a situation where 20 or more jobs will be cut, the employer must hold collective consultation. The Trade Union and Labour Relations (Consolidation) Act 1992 covers collective consultation [4] cited 20.11.24

If the plan will result in less than 20  redundancies, then the employer will consult with you individually.

The affected employees will be identified and informed, and volunteers for redundancy may be sought. A fair selection criteria and selection pool should be used to identify the employees to be made redundant [5] cited 20.11.24

Consultation provides an opportunity for you to discuss the situation with your employer and for it to explain the proposed changes, reasons you are at risk of redundancy and to answer  and address any questions or concerns you have.

It allows you to query the process and suggest alternatives to redundancy.

The consultation should be meaningful and allow you to discuss topics such as:

• Different ways to avoid or reduce redundancies.
• The selection criteria.
• Any concerns you have with the process.
• Time off for job searching or training.
• The plans for restructuring or future organisational strategies.

Your employer should listen to you and any suggestions that you have and make a reasonable effort to reach an agreement with you.

It is important to note, however, that your employer is not compelled to agree with any suggestions you make or ideas that you propose.

The number of consultation meetings you have will  depend on the number of redundancies and the type of consultation required:

Fewer than 20 redundancies - there are no rules about how long individual consultations should last, but your employer should hold at least one private meeting with you.

20 to 99 redundancies - collective consultation should start at least 30 days before any dismissals.

100 or more redundancies - collective consultation should start at least 45 days before any dismissals.

What happens if I am selected for redundancy

You should be given the right to appeal the decision if you believe it is unfair. In the event there is no appeals process, you should still inform your employer of your wish to challenge the decision and write to it with the reasons why as soon as possible.

If your redundancy is confirmed, you will be told how long your notice period is, which may be statutory or contractual, you will be paid as normal and usually carry on working until the end of that period

You are generally entitled to statutory redundancy pay if you have been working for your employer for at least two years. The amount of statutory redundancy pay will depend on your age, length of service, and weekly pay.

There is a government calculator that helps you to work out how much statutory redundancy pay you can get [6] cited 20.11.24 It is based on age, weekly pay and number of years in the job.

There are also other types of redundancy payments that you may receive.

Your employer may offer an enhanced redundancy payment that is more than the statutory minimum, this will usually be detailed in your contract of employment or included in your employer’s policy.

There can be situations in which you are not required to work your notice, and your employer offers you pay in lieu of notice

You are entitled to payment for any outstanding annual leave that you have.

And depending on the terms of your employment contract, there may be other additional payments e.g. bonuses or other benefits.

Finally

Redundancy is the type of worrying news that can cause emotional stress, psychological harm and significant challenges.

Trying to navigate the process alone can be intimidating, overwhelming and extremely unsettling, but expert help is available.

We can support you throughout the redundancy process. We can provide you with one of our experienced and skilled representatives to act as your companion, and to ensure you are treated fairly, during any redundancy consultation meetings. Contact our Employee Support Centre or call us today for a free initial consultation on 0333 772 0611