September 24th, 2020
Morrish Solicitors
Employment

Everything You Need To Know About Redundancy

If you are facing redundancy it’s extremely important you understand the process and know your employment rights. Redundancy can be a complex area of law and your employer must follow the correct procedures regardless of the circumstances.
In this article, our specialist team in redundancy legal advice have produced a helpful guide with everything you need to know about redundancy.

What You Need to Know About Redundancy?

Below Daniel Kindell, Partner at Morrish Solicitors and Shamaila Gul, Trainee Solicitor have answered 5 top questions about the redundancy process:

What steps are involved in the redundancy process and when should an employee speak to a solicitor about redundancy?
What would be considered an unfair redundancy?
How much noticed of redundancy is an employee entitled to?
How much redundancy pay are employees entitled to?
Can an employee challenge their employer if they feel they have been unfairly chosen for redundancy? How can a solicitor help?

The Redundancy Process

What steps are involved in the redundancy process and when should an employee speak to a solicitor about redundancy?

An employee should speak to a solicitor as soon as possible.
In order to dismiss fairly, employers have to follow a redundancy process and consult with staff before making any decisions. It’s therefore useful to know what the employer’s obligations are in advance.
Employers might also have to consult with employee representatives where making 20 or more redundancies at the same workplace, however, not everyone is aware of the full extent of those obligations, nor what action can be taken in the event of a failure to comply.
The redundancy process that should be followed is often set out in the employment contract or staff handbook. In large restructures, the consultation period will normally start with an announcement of the reasons for redundancies and what is going to happen next. Employees need to understand the selection pools, selection criteria, whether and suitable alternative roles are available and whether there is any opportunity for voluntary redundancy.
An employee should also check whether there is an appeals process and if so, how that works.
A solicitor can help an employee understand all of these issues, giving them the best chance of staying in employment or negotiating a suitable exit package, if desired.

What would be considered an unfair redundancy?

Redundancy is likely to be unfair if the employer fails to follow a fair selection process before making its decision. It will also be unfair if the reason is a discriminatory or “automatically unfair” reason.
Automatic unfair reasons for selection are:

The employee has asked for a relevant statutory right at work e.g. a request for the minimum wage

The employee has raised health and safety concerns
The employee was a whistleblower e.g. he or she had complained about the employer doing something illegal or criminal, or complained that the employer breached health and safety rules or created a dangerous working environment and believed making that complaint was in the public interest.
The employee works part-time or is on a fixed term contract
The employee is a trade union member or has been on an official strike

If redundancy selection is based on age, sex, religion, race, disability, sexual orientation or any other protected characteristic, it is also highly likely to be unfair and discriminatory.
Normally to pursue an unfair dismissal claim an employee has to have at least 2 years’ service. However, there is no minimum service requirement to pursue a claim where redundancy selection is based on automatically unfair or discriminatory reasons.

How much notice of redundancy is an employee entitled to?

If an employee is selected for redundancy, he or she is entitled to a notice period before employment ends.
The statutory minimum is:

one week if the employee has been employed between one month and 2 years or

one weeks’ notice for each year if employed for more than 2 years to a maximum of 12 weeks.

An employee must also check the employment contract as that may provide for longer notice periods.

How much redundancy pay are employees entitled to?

There are two types of redundancy pay: statutory and contractual.
An employee is entitled to statutory redundancy pay if they have been employed continuously for 2 years and have been made redundant e.g. due to a workplace closure or a need for fewer employees to do work of a particular kind.
A redundancy pay calculator can be found on the government website: https://www.gov.uk/calculate-your-redundancy-pay
For each full year worked between certain ages, an employee must receive:
age 18 to 21 – half a week’s pay
age 22 to 40 – 1 week’s pay
age 41 and older – 1.5 weeks’ pay
This is calculated on gross pay and subject to a maximum of £544 per week (as of April 2021)
An employee may also be entitled to contractual redundancy pay. This is an additional amount set out in the employment contract, but not all employers have enhanced contractual terms. There is no obligation to offer more than the basic statutory payment unless the contract or employee handbook says otherwise.

Can an employee challenge their employer if they feel they have been unfairly chosen for redundancy? How can a solicitor help?

Yes, redundancy selections can be challenged.
An employee can make use of an employer’s formal appeal process and a solicitor can help identify the best arguments to raise. It might also be advisable to raise a grievance, depending on the reason for the redundancy selection.
If the appeals process does not resolve the issue, a solicitor can advise on the merits of pursuing an unfair dismissal or other claim and help the employee decide whether to take further action.
If a case is to be taken forwards, a solicitor can help with the Employment Tribunal process.
There is a general time limit of three months less a day from the date of the alleged unlawful act to bring a claim in the Employment Tribunal. In unfair dismissal cases, this runs from the date employment ended. This time limit is subject to any extension of time allowed by using the ACAS Early Conciliation process before the primary time limit expires.

Employment Law Solicitors

Morrish Solicitors are one of the leading Law Firms in Leeds, we offer a range of legal services to clients in West Yorkshire and the rest of the UK. We have a team of qualified, skilled and experienced solicitors and legal assistants advising on all aspects of law.
Our services cover:

Our Employment Department have built up a formidable reputation representing people of all backgrounds through our work for individual clients, Unions, Associations, Professional Bodies and their members. This gives us great knowledge and understanding of all different types of employment matters.
If you are currently facing redundancy and would like to seek clear, honest and confidential legal advice speak to Morrish Solicitors today on 033 3344 9600 or simply fill in our online contact us form with your request.