Managing workplace transitions by understanding of your redundancy process.
Redundancy should only be used in certain situations that are ‘wholly or partly attributable’ to one of three situations:
If the situation does not fit within these scenarios, then specific advice should be sought to consider the next steps.
Your employer must consult with you at least once before making you redundant.
Where 20 or more employees are being made redundant over a period of 90 days or less, special rules apply. The employer may hold collective consultations with elected employee representatives, or your trade union if applicable.
You may be part of a ‘selection pool’ of potentially redundant employees. Your employer may use certain criteria to make a decision on who to select for redundancy.
The selection criteria must be objective and non-discriminatory. This means you cannot be selected for redundancy in the following circumstances:
If no alternative to redundancy can be found during the consultation, the employer will need to communicate their decision to make you redundant in a final meeting. You have the right to appeal the decision made.
If you are made redundant, you are entitled to certain payments. If the employer does not make these payments, or pays you a lesser amount to that you are owed, you may have a claim for ‘wrongful’ dismissal or breach of contract.
You will be entitled to:
You will also be entitled to pay in lieu of any accrued but untaken holiday outstanding as at the date their employment ends.
One way for your employer to avoid making you redundant is to offer you suitable alternative employment that starts within four weeks of your current role ending. You are also entitled to a four-week trial period.
If you feel the alternative role is not suitable for you, you will need to tell your employer in writing. The employer may feel differently and refuse to pay your redundancy pay, in which case it is important to seek advice.
A settlement agreement is a legally binding agreement between you and your employer, usually providing a settlement payment in exchange for your agreement not to pursue any employment-related claims.
You are obliged to receive legal advice from an independent advisor on the terms of a settlement agreement before you sign. It is possible to negotiate the terms of a settlement agreement.
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