THE BASICS OF REDUNDANCY

17 August 2018

• Employment law liverpool
• Solicitors Liverpool
• employment tribunal
• redundancy
• redundancy pay
• redundancy rights
• surplus labour
• cessation
• Redundancy solicitors Liverpool

Redundancy is the process in which an employee is dismissed for the following reasons:

• Relocation - if the organisation relocates to an inconvenient location for the employee then they qualify for redundancy.
• Cessation – when an employer decides to cease business or close part of the business where an employee works.
• Surplus labour – when employers’ need to downsize their staff for various reasons including the introduction of labour-saving devices or re-organisation of the business.

Dismissals due to changes in shift pattern or the reduction of overtime do not constitute redundancy.  

When considering redundancy an employer must follow the vital procedures, in order to avoid any unfair dismissal disputes. There are specific procedures to follow including the correct redundancy consultation process, which should help an employer avoid facing an Employment Tribunal.

Employees who have been in continuous employment for two years or more are entitled to a statutory redundancy payment, which is based on their age, length of employment, and weekly gross pay, capped at 20 years continuous service and £489 a week. Although some employers do provide higher redundancy payments under their own contract agreements or in a discretional format.

Employees need two years of continuous service to claim redundancy payment, however employees with only one year of experience can still claim for unfair dismissal. Although, if an employer selects an employee for redundancy on an unfair basis, there are no restrictions on service.