Rules of Redundancy
Redundancy is becoming an increasingly common reality for many, but as it’s rarely expected, it often means that full awareness of our rights are lacking. So what are the rules of redundancy?
If made redundant, employers must follow appropriate rules. This includes engaging in appropriate consultation and making payment for those with 2 years’ service or more. Yet it should be noted that entitlement is dependent on the employee’s weekly pay, length of service and age.
Employers should use a fair and objective way of selecting individuals for redundancy, though this is not necessary if your job no longer exists; for example, the employer is closing down the whole operation and/or making all the employees working in it redundant.
However common methods for deciding on redundancy includes,
• last in, first out (employees with the shortest length of service are selected first)
• asking for volunteers (self-selection)
• disciplinary records
• staff appraisal markings, skills, qualifications and experience
Discrimination laws still apply and so selection based on ‘protected characteristics’ are unlawful.
Yet, statutory rights will improve as of 6th April 2016, and so take a listen to learn more. Click here to calculate your entitlement.