Redundancy

Whether you are an employer or an employee, one of the hardest situations to manage in employment is a redundancy. 

From an employer's side, it can be devastating to have to let go of staff, knowing that their livelihoods are be affected so adversely; and as an employee, the stress and fear accompanied with being told your job is no longer in existence can be unbearable.

At Judge & Priestley, we can offer experience, expertise and empathetic service at this difficult time.  We can also ensure that the redundancy process has been or will be conducted fairly to avoid bitterness and the opportunity for grievance cases to be brought.

The Law Relating to Redundancy

Under UK law, an individual can only be made redundant in the following circumstances:

  • Your employer is closing down the business.
  • Your employer is no longer taking on work that requires your skills.
  • There is no longer enough work for you or for your team or department.
  • Organisational, technological or economic changes require “downsizing”.
  • The business is moving locations.

The common thread to these criteria is that the basis of the employment has fundamentally ceased to exist. 

The law also requires that the redundancy process is conducted fairly.  This requires an employer to:

  • Give adequate warning and time for consultation
  • Use a fair basis for selecting those to be made redundant
  • Consider alternative avenues of employment i.e. try to avoid the redundancy
  • Allow for appeals

Redundancy selection may relate to a specific job description, or to a number of staff in a range of job descriptions who must compete for fewer jobs. Whether a fair method of selection for redundancy has been used, remains an issue, from 'ranking' to competitive interviews. 

If the procedure is not followed correctly, there may be a case for unfair dismissal.

Our employment team has the experience and expertise required to advise both employees and employers on the law of redundancy.  Our clients include large, multi-nationals through to SMEs, which provides our solicitors with the breadth of knowledge to competently advise on any redundancy situation.

Am I Entitled to a Redundancy Payment? 

One of the most pressing questions a person has when facing the prospect of redundancy is whether or not they will be entitled to a redundancy payment.

The legislation does provide for a redundancy payment in most circumstances if you have been employed by your current employer for two years or more.  There are two alternative bases for calculation: the statutory calculation and any contractual entitlement. We will be able to advise you on whether you are entitled to statutory redundancy pay and if so, how much the payment is likely to be.

To talk to us further about redundancy, please phone Paul Stevens in complete confidence on 020 8290 7422 .