Posted on Jun 9th 2016.
In a recent employment tribunal, SSI steel workers were awarded £6.25 million due to lack of communication during a redundancy process. Redcar plant shut down last year leaving employees redundant.
Employers must consult with staff even if the end result is inevitable, or forfeit multi-million pound claims. When dismissing 20 staff or more employers are obliged to consult with staff under a European Directive.
Redundancies should be a last resort and employers must be able to demonstrate that the employee’s job no longer exists.
Where possible, employees should be offered alternative employment within the company. If an employee accepts the offer they must be granted a trial period without the risk of losing their right to redundancy.
Staff must be paid at least statutory redundancy notice pay. Employees with more that 2 years continued employment are entitled to redundancy pay.
The redundancy process is complicated and a fair selection process is imperative. Seeking advice is highly recommended. Call Wurkplace if you need advice and/or support in a redundancy situation.
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