There is a genuine redundancy situation if an employee is dismissed because the business as a whole, or the particular workplace where the employee worked, has closed down. Likewise, if the employer decides to either reduce the size of the workforce to do work of a particular kind or cancel a particular type of business operations.
If the employee can show that their dismissal fell into one of the above categories; they may be entitled to a statutory or possibly a contractual redundancy payment.
Employees are eligible for statutory redundancy payments if:
- They have two or more years continuous service since the age of 18
- They are below “normal” retirement age (which depends on the employer’s normal practice on retirement)
For each full year of continuous employment an employee is entitled to:
|Age||Pay per Year of Continuous Employment|
|41 and over||one and a half week’s pay per year of service|
|age 22 to 40||one week’s pay per year of service|
|up to age 21||half a week’s pay per year of service|
There is a limit of up to a maximum of 20 weeks.
There is a limit to the basic weekly pay which can be claimed and which is updated every year. Currently it is £430.
Employees can lose their right to a statutory redundancy payment if:
- They are offered their old job back or a suitable alternative and they unreasonably refuse.
- They are dismissed for gross misconduct during the redundancy notice.
- They resign before the end of the notice period.
A contractual redundancy payment is only payable if there is a contractual right to an enhanced payment. A policy which is expressed to be discretionary within the contract terms will not usually be contractual unless very specific other conditions apply.
Dallas Legal will handle your case right from the beginning until the end.
We will start by providing you informative, honest, free advice in confidence. Moving forward, we will provide legal and business consultation reviewing and structuring the case to dealing with all correspondence and advocacy at hearings (if necessary).