Redundancy generally occurs when a business is forced to downsize, economise or close down. Other circumstances that might necessitate redundancies might be if a company relocates or if a specific part of their operation is no longer viable.
The important thing to understand when speaking of redundancy is that it is the role or job that is redundant, not the person who fills that role or who does that specific job.
If you have been made redundant, or if you fear that redundancy might be something your employer is considering, it is a good idea to seek professional or expert advice. At Khan McKenzie Solicitors we are experts in all matters concerning employment law, and can help you to establish your rights regarding redundancy. Our offices in Wolverhampton and Birmingham are at your disposal.
Genuine redundancy can occur as a result of:
- A business no longer needs the skills for which you were employed – this can be for a number of reasons, including downsizing or closure of all or part of the business
- The work you were doing is now being done by other employees
- The business moves to another location
- The business is transferred to another employer
There are also a number of common examples of non-genuine redundancy, where the employer seeks to make someone redundant rather than following the lengthier and more complex route of a disciplinary or performance related termination of employment. These non-genuine reasons for redundancy include:
- If the employer has recently taken on, or is planning to take on new staff
- If the employee has been criticised about their performance and then faced redundancy
- If the employee has had a personal conflict with someone in their line management and then faces redundancy
- If the employee belongs to any group that might be subject to discrimination: an ethnic minority; sexual orientation; pregnancy; disability etc. and then finds themselves facing redundancy
- If the employee in question is alone in facing redundancy, or is one of a small number among a large workforce
The process by which redundancies can happen is well documented and easily checked. If you want professional advice regarding this topic, please call us at Khan McKenzie Solicitors.
In brief: the employer must consult with all employees who are at risk of redundancy as soon as possible, informing them of the situation and opening a discussion of alternative courses of action. This consultation has a time element attached to it, so if there are between 20 and 99 proposed redundancies a minimum period of 30 days consultation is required, In cases of 100 or more redundancies there is a minimum consultation period of 45 days. There is no upper time limit on consultation.
If you are in line to be made redundant, then you should be offered suitable alternative employment within the organisation, should such a position exist. There are a number of regulations that apply in this situation, as we would urge you to take professional advice if you are unsure of your situation.
When an employer is reducing the number of staff in a particular role or department you may be obliged to apply for your own job in order to stay in post. While this may not seem fair, particularly as there may be external candidates for the same post or posts, it is a normal occurrence.
If you are made redundant you are eligible to receive a redundancy payment. There is a statutory minimum amount payable depending on your length of service, your age and your salary. In the event your employer has ceased trading or is insolvent, then you can apply for this statutory redundancy pay to be paid by the National Insurance Fund.
If you have any questions regarding any aspect of redundancy then don’t hesitate to seek professional advice. Once again, our offices in Birmingham and Wolverhampton will be able to help.
Keeping in view the financial difficulties of clients, we have tailored very reasonable and affordable costs structure for our Redundancy matter clients. If you would like to discuss any matter related to Redundancy, please contact us through phone +44(121)794 2000 or alternatively make an online enquiry and we will respond at the earliest opportunity. We are very flexible in arranging appointments and offer highly friendly and personalised service with very competitive costs