If a business requires to consider making redundancies then procedures require to be followed. Employees have the right not to be unfairly selected for redundancy. It is essential that companies communicate clearly with staff if a redundancy process is being put in place. It may be that voluntary redundancy can meet the needs of the business to downsize its staffing levels. If not then a redundancy selection process will be required.
Redundancy is basically a process where an employee is dismissed because the employer no longer has a job for them to do. This can happen for many reasons such as loss of a major contract, poor general company performance, new technology eliminatying the need for certain skills amongst the workforce. An employer may simply need to cut costs to continue trading and this might require staff redundancies. Or the employer may simply need to close down the entire business leading to all staff being made redundant.
In order to qualify for redundancy payments the employee in question must have been in continuous employment with the employer for at least 2 years prior to the date of dismissal.
Statutory Redundancy payments will depend on factors such as your length of service, your age and your weekly pay. As a guide your minimum statutory redundancy payments would be as follows:
If you are going to be made redundant, or have been made redundant, then you are entitled to work your notice period, be placed on gardening leave, or receive pay in lieu of notice. Check your employment contract for details of this, or contact us on 0131 341 2657 for assistance.
If you are being offered redundancy or are involved in a redundancy process you may have some concerns and wish advice.
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