Redundancy: your rights

Redundancy arises when there is a workplace move or closure, or where an employer is ceasing trading altogether.  It also arises when an employer has a reduced need for employees to carry out a particular kind of work.

For a redundancy dismissal to be fair, your employer must:

• Establish that there is a genuine redundancy situation, as set out above.
• Follow a fair procedure prior to selecting any employees for redundancy by:
  • Carrying out a fair selection process: usually by pooling and scoring employees based on fair and objective selection criteria;
  •  Conducting a fair consultation process; and
  • Considering whether any suitable alternative roles are available which may avoid the redundancy dismissal.

In cases where your employer is considering making 20 or more employees redundant within a 90-day period, it will have a duty to undertake a "collective consultation" either by consulting with elected employee representatives or trade union representatives.  The collective consultation process must begin at least 30 days before any dismissals take effect (or 45 days if the employer is proposing to dismiss 100 or more employees).  This is in addition to meeting with you and each other affected employee on an individual basis.

An employee who is pregnant or who is on or has recently returned from maternity, adoption or shared parental leave, has the right to be offered any suitable alternative roles ahead of other employees.   

Settlement agreements

• Your employer may offer the option of voluntary redundancy with a settlement agreement as an alternative to proceeding with a redundancy consultation. 
• If you are offered a settlement agreement, you will need to seek independent legal advice on the terms.  Usually employers will make a contribution towards the cost of this advice.  If you decide to sign the settlement agreement, your employment will end, and you should be offered an enhanced redundancy payment in exchange for agreeing to waive your right to bring a claim for unfair dismissal.

Employees with two or more years’ service will be entitled to a statutory redundancy payment in the event of redundancy.  These employees can also bring an unfair dismissal claim if their dismissal is unfair.  There are also circumstances in which a dismissal will be classed as automatically unfair, (for example, if your employer selects you for redundancy because you have made a flexible working request, or because you are pregnant or are a trade union member).

If you are at risk of redundancy, or are offered a settlement agreement, our employment team can help, and can be contacted on 01689 887 840.