At Risk of Redundancy?
With more store closures on the High Street, it has been reported this week that redundancies cost the UK tax payer over £298 million in 2018. Facing redundancy can cause uncertainty and anxiety for those employees at risk. This post explores some of the key things to expect and bear in mind.
The number of employees at risk of redundancy will impact on the length of consultation required to be given by the employer. For more than 20 employees, but less than 100 employees – the employer must consult for a minimum of 30 days. For more than 100 employees – the employer must consult for a minimum of 45 days.
The consultation should be meaningful. You should learn why the employer is proposing redundancies, what they are hoping the redundancy will achieve, what will happen to your duties and responsibilities, what alternatives have they considered to making redundancies, when dismissals are going to take place, who employees are going to be selected and what payments are likely to follow. Ideally, their answers to all of these issues should be in writing so you have a clear record.
Selection for Redundancy
There are two main things to be aware of in the selection for redundancy process. Firstly, you need to know how the pool of employees is made up and secondly, how will selection take place. The pool for selection is the group of employees the employer decides they will select from to make employees redundant. The pool might be the sales team, the finance team, or the whole company. Each case will be different. If your employer has identified a pool of employees from which they intend to select for redundancy, you need to be satisfied this pool is right (by this we mean not too wide and not to narrow). You can question your employer as to how they selected the employees for the pool.
Once you know the pool, there will be a selection process. Selection could be by a marking system based on your qualifications, disciplinary record, sales or production performance etc…. or by other means, such as interview or an assessment. You must make sure you understand how scores will be allocated and if your scores are fair. Things to consider are what evidence the employer has obtained to calculate the score, and making sure you are given proper information and time to prepare for any assessments or interviews. Always ask for detailed feedback following a selection process so you can check the scores are correct.
Suitable alternative positions?
If you’re unfortunate enough to be selected for redundancy, your employer should do all they can to minimise the risk of dismissal by looking at suitable alternative employment. Make sure you ask your employer about any other roles, speak to HR and check any internal job boards. A failure to offer or consider suitable alternative positions can give rise to a claim.
Payments to expect?
If you are selected for redundancy and you believe this is fair please make sure you receive all your entitlements. Things to look out for here are:
- Redundancy pay. Check your statutory entitlement which you can usually do online. Also, see if the company are offering anything better – usually referred to as an enhancement. Enhancements can significantly increase payments so always check. However, remember that in some cases if you are offered an enhancement, you might be expected to sign something called a Settlement Agreement. The basic position here is that you will receive an enhancement, and in exchange, you agree not to pursue any claims against your employer.
- Notice pay. Check your contract to see the notice the company are required to give you. This could be anything – one month, three months, six months or even longer. However, in the absence of having any contract, remember that you are legally entitled to one week of notice for every full year of employment, up to a maximum of 12 weeks.
- Outstanding holiday pay, bonus, commission and expenses. Check your holiday records and any performance figures to ensure you get all you are entitled to here.
If you have any concerns about the process you are facing, please call us on 01522 539501. You are under no obligation and you will not be charged for your enquiry. Alternatively, visit our website at www.lincslaw.co.uk for more information.
Specialist Employment Law Solicitor
LincsLaw Solicitors, Lincoln
DDI: 01522 440513 / Email: email@example.com
 (source -https://www.thisismoney.co.uk/money/markets/article-6740257/Taxpayers-picked-298m-bill-redundancy-payouts-soared-following-wave-insolvencies.html)