Redundancy is a form of dismissal from your job, caused by your employer needing to reduce the workforce. Reasons could include:
- New technology or a new system has made your job unnecessary;
- The job you were hired for no longer exists;
- The need to cut costs means staff numbers must be reduced; and
- The business is closing down or moving.
If your employer is making less than 20 employees redundant in one establishment they will need to consult with employees on an individual basis.
If your employer is making 20 or more employees redundant in one establishment within a 90 day period then your employer must do a collective consultation. However it should not neglect to do an individual consultation either.
Collective redundancies generally occur when there is a:
- Business or building closure, meaning your employer no longer needs as many employees; or
- Reorganisation or reallocation of work.
What is the Correct Redundancy Procedure?
In a redundancy situation, the following things should happen:-
- Your employer should select you fairly;
- You should be consulted about the redundancy;
- You should get any redundancy pay you are due and be given the correct amount of notice;
- Your employer should consider any alternatives to redundancy; and
- You have the right to appeal.
If an employer uses redundancy to cover up the real reason for ending your employment, or if they do not carry out the redundancy procedure properly, it may amount to unfair dismissal. The rights to redundancy payments and collective consultation are claimed separately from unfair dismissal.
If you would like some more information on what support is available to you when being made redundant, give us a call or request a call back for free confidential advice with no obligation.