What You Need To Know If You Are Facing Redundancy
Copyright (c) 2011 Robert Gray
Most people, over the last decade, have either themselves been affected by redundancy or know somebody that has been affected. Unfortunately, the news stations continue to bring us news of businesses closing down and people losing their jobs. So what are your rights if you find yourself in the unenviable position of facing redundancy? Are you entitled to any redundancy pay and are you able to take time off during working hours to look for a new job? This article seeks to answer these questions.
Redundancy is a form of dismissal from your job. It usually occurs for financial reasons - i.e. your employer is having to make financial cut backs and therefore needs to reduce its staff workforce. Redundancy can, however, also occur when a business completely shuts down, carries out a restructure, or where advances in technology mean that the job which you are employed to do no longer exists.
If your employer is making less than 20 people redundant then each of these employees are entitled to an individual consultation. If 20 or more people are being made redundant (within a 90 day period) then this will be classed as a collective redundancy. In both cases employees need to be given as much information as possible about the terms of their redundancy.
In an individual consultation an employee will need to be advised how they were selected for redundancy (the decision to select a certain employee cannot be random - their employer must have evidence to back up their choice/decision), and alternatives to redundancy must be discussed. 'Alternatives' include the employee being offered 'suitable alternative employment' where the new position being offered is similar in nature to their current position and requires similar working hours and pay.
Where the employer is making collective redundancies, similar information and alternatives must be offered to the employees, though the employer is required to consult with either the employees or their representative.
An employee facing redundancy may be entitled to statutory redundancy pay which will be based on their length of continuous service with the company, their age and (in some cases) their weekly pay. You should check your contract of employment regarding redundancy pay as some companies may offer more favourable terms than what you are entitled to according to statute.
An employee who has been employed by the company for two years or more may be entitled to reasonable time off to look for a new job.
In summary, it is clear that if you are facing the prospect of redundancy you are entitled to as much information as possible from your employer as to how you were selected for redundancy and what alternatives may be available. You should also make sure you understand your rights to redundancy pay and ensure you take reasonable time off, if needed, to look for a new position.
Most people, over the last decade, have either themselves been affected by redundancy or know somebody that has been affected. Unfortunately, the news stations continue to bring us news of businesses closing down and people losing their jobs. So what are your rights if you find yourself in the unenviable position of facing redundancy? Are you entitled to any redundancy pay and are you able to take time off during working hours to look for a new job? This article seeks to answer these questions.
Redundancy is a form of dismissal from your job. It usually occurs for financial reasons - i.e. your employer is having to make financial cut backs and therefore needs to reduce its staff workforce. Redundancy can, however, also occur when a business completely shuts down, carries out a restructure, or where advances in technology mean that the job which you are employed to do no longer exists.
If your employer is making less than 20 people redundant then each of these employees are entitled to an individual consultation. If 20 or more people are being made redundant (within a 90 day period) then this will be classed as a collective redundancy. In both cases employees need to be given as much information as possible about the terms of their redundancy.
In an individual consultation an employee will need to be advised how they were selected for redundancy (the decision to select a certain employee cannot be random - their employer must have evidence to back up their choice/decision), and alternatives to redundancy must be discussed. 'Alternatives' include the employee being offered 'suitable alternative employment' where the new position being offered is similar in nature to their current position and requires similar working hours and pay.
Where the employer is making collective redundancies, similar information and alternatives must be offered to the employees, though the employer is required to consult with either the employees or their representative.
An employee facing redundancy may be entitled to statutory redundancy pay which will be based on their length of continuous service with the company, their age and (in some cases) their weekly pay. You should check your contract of employment regarding redundancy pay as some companies may offer more favourable terms than what you are entitled to according to statute.
An employee who has been employed by the company for two years or more may be entitled to reasonable time off to look for a new job.
In summary, it is clear that if you are facing the prospect of redundancy you are entitled to as much information as possible from your employer as to how you were selected for redundancy and what alternatives may be available. You should also make sure you understand your rights to redundancy pay and ensure you take reasonable time off, if needed, to look for a new position.
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