Redundancy: your rights

Redundancy

If you are at risk of redundancy this can be a very worrying time and it is important that you know your rights and what you are entitled to.

What is redundancy

Redundancy is a form of dismissal from your job, this usually happens when a company needs to reduce its workforce, this can be to save costs, to change or move operations, or because they are closing down.

 

What you may be eligible to 

If you’re facing redundancy, you may be eligible for certain things, including:

• Redundancy pay
• Notice period
• A consultation with your employer
• Opportunities to move into a different role
• Reasonable time off to find a new employment

 

The selection process

Your employer must select staff for redundancy in a fair process such as capability or experience, and they cannot select you because of your gender, age, disability, or because you are pregnant, as this may be classed as an unfair dismissal.

Common methods are:

• Last in, first out
• Staff skills, qualifications, experience and performance
• Asking for volunteers

Employers can make redundancies without a selection process if the job no longer exists, you are the only person within a role, or if the company is closing.

 

Redundancy payments

What redundancy pay you receive will vary depending on time in service but statutory payments following two years’ service are:

• Under 22 years old – half a week’s pay for each full year you were under 22
• 22 to 41 years old – one week’s pay for each full year you were over 22 but under 41
• 41 years or older – one and half week’s pay for each full year you were 41 or older
• Length of service is capped at 20 years.

 

You will not be entitled to redundancy pay if your employer offers you alternative employment which you refuse, or offers to keep you in your role.

 

Notice periods and pay

Your employer must give you a notice period before your employment ends.

Statutory redundancy notice periods are:

• at least one week’s notice if employed between one month and 2 years
• one week’s notice for each year if employed between 2 and 12 years
• 12 weeks’ notice if employed for 12 years or more

Your employer can give you more notice, but cannot give you less, so it is always worth checking your contract of employment.

Notice pay is in addition to statutory redundancy pay, and your employer should either:

• pay you through your notice period
• pay you in lieu of notice depending on your circumstances

 

Your employment can be ended without notice if ‘payment in lieu of notice’ is included in your contract. Your employer will pay you instead of giving you a notice period.

You get all of the basic pay you would’ve received during the notice period. You may get extras such as pension contributions or private health care insurance if they are in your contract.

 

Further information and advice

If you need advice on your situation these are useful sources of information:

• Gov.UK – https://www.gov.uk/redundancy-your-rights
• ACAS – https://www.acas.org.uk/your-rights-during-redundancy
• Citizens advice – https://www.citizensadvice.org.uk/work/leaving-a-job/
• Money Advice Service – https://www.moneyadviceservice.org.uk/en/articles/redundancy-pay

 

How we can help

We cannot provide you with legal advice in relation to your personal situation or the risk of redundancy. We would recommend that you contact ACAS by calling 0300 123 1100. ACAS can offer free personal and professional advice.

If you are worried and need support with the impact of redundancy, here are a few (not all) of the ways we can help:

• accessing benefits
• debts and money management
• emotional wellbeing
• ways to build resilience and cope with change

 

You don’t have to go through this alone. Call us free on 08081 311 333 or chat with us online - we're here for you.