Redundancy Process

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. 

Reasons why a redundancy process is taking place:

  • Business ceasing to operate
  • Relocation
  • Introduction to a new technology which minimises the need for staff in a certain department

Legal minimums for redundancy pay:

  • Statutory notice period – this depends on employees length of service
  • Payment in lieu of notice – if the employee is prevented from working
  • Lump sum pay off (depending on the contract terms)

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.

Leave a Comment

Your email address will not be published.

Let Wurkplace Help You Today. Nothing Is Too Small or Too Big, We Have Experts Waiting to Help!Get Help Now!

let's talk!

If you need support, we have expert consultants waiting to help.

Leaving so soon?

Subscribe to our newsletter to get access to free updates and resources.