Redundancy is a form of dismissal from a job that happens when employers need to reduce their workforce.
If a business is looking to restructure, streamline their processes, or is closing an office, they might need to make redundancies.
A redundancy is only legal if the job you are doing is no longer needed.
If you feel you have been wrongly dismissed by an employer, you might have a case for unfair dismissal.
At Bowsers Solicitors, we advise on all aspects of Employment Law, including redundancies and all matters relating to unfair, wrongful or constructive dismissal.
Bringing a claim against an employer can be stressful and getting started can often be the hardest part.
Our lawyers can help. We will support you through the entire process, from your initial claim and the ACAS process, through the relevant negotiations, and, if necessary, represent you at an employment tribunal.
For more information about workplace discrimination claims, please contact our experienced employment lawyers today on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk.
In this blog, our specialist Redundancy Lawyers answer frequently asked questions about redundancies.
What is redundancy?
Redundancy is when an employee is dismissed by their employer because their job or the work they are doing is no longer needed.
The selection process for redundancy must be ‘fair’ and employers must follow a set legal procedure.
It is illegal to select someone for redundancy because of certain characteristics, including:
- Sex.
- Race.
- Age.
- Sexual orientation.
- Religion.
- Disability.
Employees who are made redundant might be eligible for certain rights. These include redundancy pay, the option to move into a different role within the company, and time off to find a different job.
What is the redundancy process?
Employers in England and Wales need to follow a set redundancy procedure. The main steps involved in the redundancy process are:
- Check whether redundancy is needed.
- Follow the right redundancy process.
- Inform employees.
- Hold consultations.
- Select employees.
- Work out redundancy pay.
- Give notice.
- Offer alternative employment.
- Offer an appeals process.
- Support your staff.
What is the standard redundancy package in England?
Employees are usually entitled to statutory redundancy pay if they have been working for their current employer for two years or more.
Redundancy payments are based on age, pay and length of service (capped at 20 years). From April 2024, there has been a maximum statutory redundancy package of £21,000.
Statutory redundancy pay is calculated as:
- Half a week’s pay for each full year an employee was under 22.
- One week’s pay for each full year for employees aged 22 or older, but under 41.
- One and half week’s pay for each full year an employee was 41 or older.
Is redundancy pay tax free?
The first £30,000 of redundancy pay is tax free.
Can you be made redundant if you’re pregnant?
You can be made redundant while pregnant, or if you are on maternity or paternity leave, provided it is a genuine redundancy situation. This means that you cannot be made redundant because of your pregnancy or maternity/ paternity leave.
Pregnant employees and some new parents have specialist protection in a redundancy situation.
Under the Employment Rights Act 1996, if you are pregnant, taking maternity leave, adoption leave or shared parental leave, your employer must offer you a suitable alternative vacancy, if there is one.
The redundancy protected period for pregnant employees or those taking maternity leave was extended from 6 April 2024.
Employees now have the extended protection if they:
- Notified their employer of their pregnancy or start maternity leave after 6 April 2024.
- Were already on maternity leave on 6 April 2024.
Before this, relevant employees were only protected while on maternity leave.
Read more here.
Redundancy Solicitors Near Me
Strict laws apply to redundancy procedures that if employers fail to follow can lead to serious legal repercussions.
If you have been made redundant and are concerned that the correct process has not been followed, get in touch with Bowsers Solicitors.
From our offices in Wisbech and March, we offer practical and cost-effective legal advice to clients across Cambridgeshire on various employment law issues.
Our employment law service includes legal advice on:
- Discrimination.
- Employment tribunals.
- Maternity, paternity and parental leave.
- National minimum wage.
For legal advice on redundancy, please contact our experienced employment lawyers today on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk.
Alternatively, you can fill in our contact form by clicking here.
