Redundancy rights: know your position
ThomasMansfield guide us through the basics of redundancy rights, and what to be prepared for in the current economic climate
In today's fragile economic climate the word 'redundancy' is rarely mentioned for fear of instilling a sense of panic in the workforce and upsetting those employees whose positions are not even at risk of redundancy and prompting them to start an unnecessary job search.
However, the combination of the recession and the changing nature of the workplace in 2012, where career changes, full-time freelancing and location-hopping self-employment are now acceptable, mean that redundancies are more frequent.
As redundancies are now more frequent we need to make sure that employers and employees alike are well-informed of their redundancy rights and legal and economic options should job loss occur during their career.
ThomasMansfield is a dedicated specialist in employment law and related areas, including HR consultancy, health and safety and discrimination. The company was founded in 2004 by partners from regional firms, and in that time has become a leading name in the employment law industry, thanks to its dedication to this particular area, and its breadth of expertise.
Job losses in the news
Whilst the economy continues to fluctuate, the one thing we can be sure of, in terms of employment, is uncertainty. Whilst a Guardian report confirmed that, in a poll conducted by the Chartered Management Institute, more than half of executives polled were optimistic about their company’s outlook in 2013 a scroll further down the same page – or indeed across any local newspaper – will also reveal stories of competing optimism and pessimism. For every manager’s optimism, there is also the speculation that BA are set to cut 400 more cabin crew jobs; and Manchester Council’s speculation that it will be forced to cut 900 more jobs following fresh government slashes of public spending.
Your redundancy rights
In today’s commercial environment, redundancy programs are all too common – as we can see from the examples above. Redundancy is never a happy occurrence – but knowing the law means that you can discern between a lawful and unlawful dismissal by means of redundancy.
Employers are justified in applying redundancy measures if:
- The employer is no longer carrying on the business.
- There is no longer a need for employees to carry out work of a particular kind or the workload is diminishing.
- There is a change in the location of the business.
However, there are still procedures to follow, even in cases of justified dismissal by reason of redundancy. This includes the employer creating a fair set of selection criteria for the basis of the redundancy when more than one employee is involved; there should also be as much notice given as possible, and a consultation period during which they allocate time for discussion regarding the decisions.
Alongside following correct procedure, employers are also obliged by law to pay the employee a statutory redundancy payment which is calculated according to age, salary and length of service, up to a capped amount. Transparency and fairness is key. It should be noted that employees with less than two years’ continuous service are not entitled to receive statutory redundancy pay.
If you would like to talk to experienced employment solicitors in confidence about your own specific circumstances, or have any questions about how ThomasMansfield might be able to help you, then please call on 0845 601 7756 or email: firstname.lastname@example.org