Redundancy
Our specialist employment solicitors will expertly guide you and your business through the legal complexities of redundancy
Redundancy
Legal support for businesses considering starting a redundancy process
Even the most successful businesses occasionally find themselves needing to consider redundancy for some of their staff. Following the right legal process in a transparent way from the outset will ensure the best and fairest outcomes for all.
Our specialist employment solicitors are experts at guiding you and your business through all the legal complexities surrounding redundancy, whether it involves a single employee or more than 100.
Redundancy is a fair way to dismiss employees provided your reasons for doing so are sound and that you follow a transparent consultative procedure with those affected.
Legally acceptable conditions for making employees redundant include the need to close a workplace or business entirely or, more commonly, because there is a less need for a particular kind of work for business reasons. For instance, this could be due to economic pressures or the introduction of new technology.
Where 20 or more employees are being made redundant, there are rigorous requirements for collective consultation, involving employee representatives and minimum consultation periods. If there is no recognised trade union, this will also involve making arrangements to elect employee representatives.
Our experts are legal and HR specialists, with considerable redundancy legal expertise. Having acted extensively for both employers and employees, we understand both sides of the process and have all the necessary tools and skills to achieve the most favourable outcomes.
We will take time to understand your unique situation. Our solicitors can help you ensure you have the correct legal grounds and assist with drafting redundancy proposals, guiding you through the consultation process, and advising on appropriate selection criteria, redundancy pay calculations, dismissals and any subsequent appeals.
To make sure your redundancy exercise takes place on a sound legal basis and meets the consultation requirements, we recommend getting legal advice at the outset. Contact a member of the employment team in Luton, Harpenden or St Albans.
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FAQs
Frequently asked questions
What is redundancy?
There will be a redundancy situation in any of the following circumstances:
- the actual or intended closure of the employer’s whole business;
- the actual or intended closure of the employer’s business at a particular workplace; and
- a reduction in the employer’s need for employees to carry out work of a particular kind.
An employee will be dismissed on grounds of redundancy if they are dismissed in one of these circumstances
Who is entitled to statutory redundancy pay and how is it calculated?
If you have 2 years’ service or more when you are dismissed on grounds of redundancy, you will usually be entitled to a statutory redundancy payment. This is calculated based on your age, length of service, and weekly pay. Length of service and weekly pay are subject to a statutory cap. You may forfeit your right to a statutory redundancy payment if you unreasonably refuse an offer of suitable alternative employment.
Some employees may have rights to enhanced redundancy payments in their employment contract or in an employer policy.
What should I do if I am facing redundancy?
Taylor Walton’s employment team can assist you with any queries that you may have if you are facing redundancy.
What should a redundancy process include?
Your employer should consult with you prior to making any decision to dismiss you on grounds of redundancy. The consultation should include information about the business reasons for the redundancy proposals and information about the basis upon which you have been selected for redundancy. Reasonable efforts should also be made to offer you alternative employment.
If 20 or more employees are affected by the redundancy proposals in one location, collective consultation obligations will apply which means that your employer should consult with elected representatives of the affected employees for prescribed minimum periods.
Can I appeal against redundancy?
There is no absolute legal right to appeal a redundancy dismissal. However, this is considered best practice and most employers will offer a right of appeal. Failure to offer or consider an appeal can make a dismissal unfair. If you believe that your dismissal on grounds of redundancy was unfair, you should consider raising an appeal, even if you have not been notified that you have a right to do so.
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