The issue of redundancy continues to be significant for both businesses and employees.
Recent data from the Office for National Statistics (ONS) reveals that in April 2023, 93,000 individuals were made redundant, marking a considerable increase of 42,000 compared to April 2022.
With redundancy rates on the rise, it is crucial to be well-informed about your rights and responsibilities if you find yourself in such a distressing position.
Redundancy occurs when an employer reduces their workforce due to the discontinuation of one or more positions.
The reasons behind job eliminations can vary and may include business restructuring, task automation, business closure, or insolvency.
Rights of employees in redundancy situations
If you are facing redundancy, it is important to understand your rights. If you have been employed for a minimum of two years, you are entitled to the following:
- Statutory Redundancy Pay (SRP)
This refers to a redundancy payment based on your weekly pay, age, and length of service.
- Reasonable time off to seek alternative employment or arrange training.
- Consultation with your employer regarding the redundancy process.
- The right to appeal against your selection for redundancy.
For redundancies occurring on or after 6 April 2023, the weekly SRP is capped at £643, with a maximum SRP of £19,290. If you were made redundant prior to this date, these amounts will be lower.
Fair and unfair selection in redundancy
Employers must adhere to fair and objective selection methods when choosing employees for redundancy.
Typically, factors such as skills, qualifications, and experience are considered. It is deemed unfair to select employees based on age, gender, race, disability, or pregnancy.
Employer responsibilities in redundancy cases
Employers have a set of obligations they must fulfil:
- Consultation
When making redundant 20 or more employees within a 90-day period, employers must consult employee representatives (e.g., trade unions) at least 30 days prior to the first redundancy.
- Notice
Employees should be provided with a notice period before their employment is terminated.
- Offer of suitable alternative employment
If suitable alternative work is available, employers should extend this offer to redundant employees.
In many cases, employers prioritise selecting employees with the shortest length of service when considering redundancy.
Additionally, they may request volunteers through a self-selection process.
However, if your job no longer exists, your employer is not required to follow a selection process for your redundancy.
If you have been made redundant or are currently facing redundancy, our team is available to address any inquiries you may have. Get in touch now.