Redundancy

EMPLOYMENT LAW for you

Genuine redundancy situations occur under three circumstances:

  • Business closures;
  • Business relocation and
  • Reduction or restructure of the work force.

If the above criteria are not met the employer must proceed with caution because an employee may make a claim for unfair dismissal even if a proper consultation and dismissal procedure is followed.

Is there a qualifying service requirement for bringing an unfair dismissal claim?

To proceed with a claim for unfair dismissal, the claimant must:

  • Be an employee and not an independent contractor or self-employed and
  • Have been employed by an employer for the minimum qualifying period of two years’ service (though this requirement is subject to exceptions):

What would be considered a fair redundancy procedure?

Simply speaking, an employer should approach redundancy processes in the following way:

  1. There should be a fair consultation process, including the right to one-to-one meetings to understand the reasons for, and to explore alternative to, redundancy;
  2. In a multiple redundancy situation there should be consistency in the selection and scoring of employees and
  3. The employee should be given the right to appeal.

How do I calculate the statutory redundancy payments?

Only employees with two years’ service are entitled to redundancy pay.

The amount of redundancy payment is based on the employee’s age, length of continuous service and gross average wage at the date of when redundancy occurs.  This is worked out as follows:

  • Half a week’s pay for each full year if the employee is under 22.
  • 1 week’s pay for each full year the employee is 22 or older, but under 41.
  • 1.5 week’s pay for each full year the employee is 41 or older.

There is a cap on the weekly pay which changes in April every year.

Calculate your redundancy payment here

What remedies are available to me?

Employees who are successful in their claim for unfair dismissal can request reinstatement (returning to their old job) or compensation, though they will have to make every attempt to find alternative employment.

How can we help?

If you are going through a redundancy or restructure process, we are experts in this area and can advise and assist you through the process. Call a member of the team on 01133504030 or complete the contact form for a free 30 minute telephone consultation.

%d bloggers like this: