18 Mar Redundancy In Spotlight As Duke And Duchess Of Sussex Axe All 15 Staff
But how precisely does redundancy differ from dismissal? As an employee the differences are important to you.
The following will be helpful if you find yourself dismissed and told you are being made redundant.
If you’re faced with redundancy, your employer must treat you fairly and act in accordance with your contract and legal redundancy rights. That includes making sure you’re consulted, following the right selection process if there are others being made redundant (not being discriminated against on the basis of age or gender for example) and giving you a proper notice period. If not, then you could have a claim for unfair dismissal, or claim compensation for lack of consultation.
Dismissal is if you are fired for any reason other than that your job no longer exists for instance: theft, or an act which contravenes your contract of employment
Redundancy is if you are dismissed because your employer no longer needs your job to be carried out. This might be because:
- They are changing what they do.
- They are doing things in a different way.
- Moving home and or not needing staff in the future.
As an employee you have certain rights and may be entitled to redundancy pay if you are made redundant.
Redundancy payments are based on age, weekly pay and number of years in the job.
You only qualify for statutory redundancy pay if you have worked for your employer for at least 2 years. Redundancy pay for each full year of employment from year three onwards is calculated as follows:
Redundancy pay is based on gross earnings.
For each full year worked for your employer:
- age 18 to 22 – half a week’s pay
- age 22 to 40 – 1 week’s pay
- age 41 and older – 1.5 weeks’ pay
If you turned 22 or 41 while working for your employer the higher rates only apply for the full years you were over 22 or 41.
There are some limits to how much redundancy pay can be claimed.
- the maximum weekly amount is £525 .
- Redundancy pay is only paid for a maximum of 20 years’ work.
You are entitled to try out an alternative role with your employers for 4 weeks (or more if agreed in writing) without giving up your right to redundancy pay.
While under notice of redundancy you have the right to reasonable time off to look for a new job or arrange training.
You can seek advice from the Citizens’ Advice Bureau or a professional if you need help,
The Graham Agency, working with you. End