With redundancies and restructuring it’s important to get the procedures right and to use them fairly.
The main rights are warning and notification of possible redundancies, consultation and rules for selecting employees where there is a ‘pool’ and a fair meeting to discuss things before a final decision is made. Employers are expected to consider reasonable ways of avoiding dismissing employees and consultation must be meaningful. They are also expected to be helpful with employees looking for work elsewhere. In fact, it’s very much in an Employer’s interests to see staff who are being made redundant safely in another role. This is the morally correct approach, but also an employee with a new job would have no realistic claim for compensation as the Redundancy Award is the same as the Basic Award and Notice will already have been paid.
I can help with any issues which arise during the consultation stage.
An Employment Tribunal has no power to challenge genuine management decisions and is more concerned how employees are treated as a result of that decision. Sometimes, there really is no way of avoiding redundancies, for example in a closure or a relocation but even to listen with an open mind. But managers should be clear about the reasons for a decision to avoid upset or humiliation (the recent P&O Ferries redundancies is an example of this). Employees who understand what is happening are less likely to challenge the redundancy.
Employees who have worked for over 2 years (in addition to notice) must be paid a fixed Redundancy Payment:
- £571 for each year worked under age 41
- £856.50 for each year worked over 41
(The maximum period is 20 years).
Larger redundancies- Additional procedures
When 20 or more employees are considered for redundancy, there are additional duties such as electing representatives and the timescales for consultation. Failure to comply can lead to an additional ‘protective’ award of up to 13 weeks’ gross pay.
Contact a Specialist Restructuring and Redundancy Solicitor in London, Birmingham, Manchester & across the UK
If you require legal advice regarding restructuring and redundancy, I can help. Call me or make an enquiry online:
