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Redundancy and the Law
There are certain steps and procedures employers need to go through before making someone redundant, there are also different set of rules if there are more than 20 employees being made redundant at the same time.
We’ve compiled a list of the key point you will need to consider before having to take the unfortunate steps to make an employee redundant.
Prior to making anyone redundant employers must “consult” with the employees via a formal meeting process. Explaining the procedure and allowing the employee to voice their opinion, this should cover information such as why the redundancies are occurring as well as how many employees will be affected.
If more than 20 employees are being made redundant, then employers must contact the employees’ representatives, usually a nominated employee or a trade union rep. If this consultation does not take place then employees are eligible to make an Employment Tribunal claim for a protective award, this can be up to 90 days pay.
Reason for redundancy.
The decision to make an employee redundant must be fair with no prejudice; obvious examples include sexism, racism and ageism. Also singular qualification and skills excuses should not be the sole reasons for dismissal, such as attendance record / skills or experience. If an employee believes he or she has been made redundant for an unfair reason they are able to make a claim to an Employment Tribunal for unfair dismissal.
Employers sometimes decide to offer an employee a position in another department of the company or a sister company. The employee has the decision to decline this offer without their redundancy pay being affected. Employers need to allocate suitable job hunting time, especially for taking time out of the office for interviews etc.
Employees who have worked continuously for at least two years are entitled to redundancy pay. As well as those who had a fixed-term contract of two years or more that expired and was not renewed because of redundancy.