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A Redundancy situation is one of the most unpleasant and traumatic event you as an employee may have to go through. Such situations may come as a huge morale blow to you but be assured that this does not leave you without any protection.
As a redundant employee, you are entitled to certain rights, the main of which is the right to Statutory Redundancy Pay (S.R.P)
To be eligible for S.R.P, you must be an employee. This means that partners, agency workers, casual workers, directors and self-employed individuals not working under an employment contract do not qualify. Another criterion which determines whether you can receive S.R.P is your length of service. You will need at least two years continuous service to qualify for S.R.P. Moreover you must have been subject to a dismissal, been laid off work or transferred to short term work. This implies that if you have opted for early retirement, you do not fall under the S.R.P umbrella.
As a redundant employee, you are also entitled to a written statement which details the amount of any redundancy payment and how the figure has been reached out, and your employer must make any such payments when or soon after the dismissal becomes effective.
The S.R.P is calculated using various factors, which include the age of the employee, the number of years the employee has been in continuous service, which can go up to twenty years, and the weekly wage of the employee, which is under a limit of £380.
Payouts under the S.R.P are restricted to £11 400.00
As an employee, you have six months from the date your employment ended, to lodge a claim for payment at the Employment Tribunal, if you believe the amount is wrong or your employer does not provide you with an S.R.P (for instance if they think you are not entitled to it). It is also worth noting that the Tribunal has the authority to extend their decision regarding payment of the S.R.P by another six months. You can also apply directly to the Business and Innovation Skills Department for a payment from the NI Fund, in the eventuality of your employer becoming insolvent.
You also have the right, as a redundant employee, to have the option of alternative employment be offered to you, wherever it can be allowed. Also you are eligible to have reasonable amount of time off on full pay to carry out a job-hunting exercise or re-training for prospective new employment. Moreover, you are also allowed to try out alternative employment without losing your right to the S.R.P. You also have the right not to be selected for redundancy through an unfair selection process. This may amount to unfair dismissal. You should however note that you must have been in continuous service for at least 12 months to be able to lodge a claim for unfair dismissal within three months of your dismissal. This can only be negated by the employer making you redundant on certain grounds.
If you are affected by redundancy and would like to speak to us about our employment services, please contact Marina Vincent on 020 8422 5678.
Contact Harold Benjamin employment lawyers team for employment law in London and Nationally.