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Redundancy Frequently Asked Questions (FAQ's)

Redundancy and employment law

If you have been made redundant!

Don't go anywhere until you have read the questions and answers below:

If you are an employee and you are dismissed by reason of redundancy you will receive a payment if you have been employed for at least 2 years.

A state redundancy payment is calculated by reference to age, length of service and pay, with the current maximum value for a week of pay being £538. If necessary, take advice as to your personal entitlement.

Your employer can pay above the state entitlement and this might be negotiated by a recognised trade union. Some employers have in place enhanced redundancy payment schemes which may be a contractual entitlement.

If you believe that you should receive a contractual redundancy payment you should take urgent legal advice.

Employers should consult about collective redundancies impacting upon groups of 20 or more employees at a work establishment. This is a legal obligation and if it is not done, you can pursue a claim for compensation known as a protective award before an Employment Tribunal.

You should be consulted on a personal basis about your selection for redundancy.

If you believe that collective consultation did not take place take urgent legal advice.

When an employer is insolvent you will receive payment from the state redundancy fund involving state level redundancy pay, notice pay, accrued but untaken holiday pay, and some arrears of pay.

Importantly if an employer is insolvent up to 8 weeks of a protective award can still be paid if there is a failure to consult.

You can challenge your selection by pursuing a complaint of unfair selection for redundancy before an Employment Tribunal, providing that you have been employed for at least 2 years.

You can complain about your selection pool, the criteria, the scores, and the identity of the person doing the scoring.

You can also complain about the procedure, including your personal consultation and your right to appeal against your selection.

You can claim compensation relating to a lack of collective consultation, and you can claim compensation for unfair selection under an unfair dismissal claim. See our advice page about unfair dismissal cases.

As with most Employment Tribunal cases there are strict time limits which apply, usually based on a period of 3 months after employment ends. It is also necessary to pursue Early Conciliation through ACAS. If you are thinking about a Tribunal case take urgent advice and do not leave a case so that you might miss a time limit.

We will always discuss legal charges with you before doing any work and we also provide a free initial assessment of your case. We will discuss all funding options with you, and this will include acting on a no win no fee basis, so that unless we recover compensation for you there will be no bill to pay.

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