About our work at the Pinnacle Partnership About the advice given by The Pinnacle Partnership If you are an employer, click here for advice on particular issues If you are an employee, click here for advice on employment issues click here for useful links to other related sites Contact us to arrange a free consultation

WHAT IS REDUNDANCY?

Redundancy is a form of dismissal caused by an employer's need to cut jobs, move the place of work or close down completely.
REDUNDANCY PAYMENTS
To qualify for a redundancy payment, employees must have at least two years service with, generally speaking, the same employer. However, a period of employment before the age of 18 does not count towards the two years.

An employer must pay those employees who qualify a statutory lump sum payment based upon their age and service. The details of these payments can be found at http://www2.dti.gov.uk/er/redundancy/ready.htm)

Some employers choose to pay more than the statutory minimum.
EXCEPTIONS

Among those who are not included in the above are:

  • People who are not employees (for example self-employed contractors);
  • Employees who are made redundant after their 65th birthday;
  • Some people on fixed term contracts.
WHAT IF NO PAYMENT IS MADE?
Employees who have not received a payment but who believe they are entitled to one should write to their employer to claim it in the first instance.

If this is not successful or is not feasible, they may make a claim in the Employment Tribunals.

Employees are entitled to receive a written statement of the amount of the redundancy payment and how it has been calculated.

 
IF A REDUNDANCY PAYMENT IS MADE, IS THAT THE END OF THE MATTER?

A dismissal on the grounds of redundancy needs to meet certain conditions and be carried out fairly (see our help page on unfair dismissal).

Basically, that involves consultation with the employee(s) to try to find ways of avoiding the redundancy such as reducing overheads, alternative employment etc.
CONSULTATION

Even in cases of single redundancies, employers should consult the affected individual.

  • In cases of redundancies between 20 - 99 employees, consultation must, by law, commence at least 30 days before the first dismissal at any one establishment in any 90-day period.
  • If 100 or more employees are involved, consultation must commence at least 90 days before the first dismissal.

Consultation should be either individually or through trade union representatives or representatives elected specifically for the redundancy procedure.

Information about the reasons for the proposals, the numbers and groups of staff affected, selection process and the methods of carrying out the redundancies and payments involved must be provided as part of the process.
DO EMPLOYERS HAVE TO NOTIFY THE DTI?

Employers proposing to make 20 or more employers redundant at any one place of work in a 90-day period must notify the Department of Trade and Industry (DTI) in advance.

IF YOU ARE AN EMPLOYEE OR EMPLOYER SEEKING ADVICE AND ASSISTANCE ON THE ABOVE, CONTACT US FOR A FREE INITIAL CONSULTATION THE PINNACLE PARTNERSHIP



 THE PINNACLE PARTNERSHIP IS REGULATED BY THE MINISTRY OF JUSTICE IN RESPECT OF REGULATED
CLAIMS MANAGEMENT ACTIVITIES. ITS REGISTRATION IS RECORDED ON THE WEBSITE www.claimsregulation.gov.uk
Back to Pinnacle home page T h e   P i n n a c l e   P a r t n e r s h i p  :  0870 787 3688 | info@pinnaclepartnership.co.uk