Being told that your role is at risk of redundancy can be worrying, particularly if you are unsure whether your employer is following the correct process.
Redundancy can be a genuine reason for dismissal, but that does not mean an employer can simply end someone’s employment without considering the appropriate procedure.
If you have been told that your role is at risk, understanding your rights can help you assess whether you are being treated fairly.
What does redundancy mean?
A redundancy situation can arise for a number of reasons.
For example, a business may be closing, relocating, restructuring or reducing the number of employees required to carry out a particular type of work.
The important distinction is that redundancy generally relates to the employer’s need for a particular role or type of work, rather than an employee simply being dismissed because of their individual performance or conduct.
Should my employer consult me?
Consultation can be an important part of a fair redundancy process.
Your employer should normally explain why redundancy is being considered and give you an opportunity to discuss the proposal.
Depending on the circumstances, consultation might include discussing ways redundancy could be avoided, the proposed selection process and whether there are suitable alternative roles within the organisation.
Consultation should be meaningful. It should not simply be a meeting to tell you about a decision that has already been finalised.
Additional collective consultation requirements can apply where an employer is proposing to make larger numbers of employees redundant.
How can my employer decide who is made redundant?
If several employees carry out similar roles but only some positions are being removed, the employer may need to carry out a selection exercise.
Selection criteria should generally be objective and applied fairly.
Employers must also be careful that their criteria do not unlawfully discriminate against employees because of protected characteristics.
If you do not understand why you were selected, you can ask your employer to explain the criteria used and how they were applied to you.
Am I entitled to redundancy pay?
Employees who meet the relevant eligibility requirements may be entitled to statutory redundancy pay.
The amount will depend on factors including age, length of continuous service and weekly pay, subject to the statutory limits in force at the relevant time.
Your employment contract may also provide for enhanced redundancy terms above the statutory minimum.
You may have other financial entitlements when your employment ends, including notice pay and payment for accrued but untaken holiday.
It is worth checking any figures provided by your employer carefully before agreeing that they are correct.
What about another job within the company?
As part of the redundancy process, an employer should consider whether suitable alternative employment is available.
Whether a particular role is suitable will depend on factors such as the nature of the work, salary, location, working hours and your skills and experience.
There can also be consequences for redundancy pay if an employee unreasonably refuses suitable alternative employment, so it is sensible to obtain advice if you are uncertain about an alternative role being offered.
What if I think the redundancy is unfair?
A redundancy dismissal can potentially be challenged where, for example, there was no genuine redundancy situation, an unfair selection process was used or the employer failed to follow a fair procedure.
There may also be issues if you believe you were selected because of discrimination or because you exercised a particular employment right.
Employment claims are subject to strict time limits. If you believe your redundancy may have been unfair or unlawful, it is important not to delay in seeking advice.
Get advice before making important decisions
If you are being made redundant, you may be asked to attend consultation meetings, consider another role or sign documents relating to the termination of your employment.
Understanding your position before making decisions can be extremely valuable.
Penerley can advise employees on redundancy, dismissal, workplace disputes and other employment matters.
If you have been told that your role is at risk of redundancy and you are concerned about the process being followed, contact Penerley to discuss your position.
