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For most people, being told that their job could be at risk from redundancy can come as a huge shock. It can also lead to a considerable amount of stress and worry. You may be wondering ‘what next?’, and ‘how am I going to pay the bills?’ – and in the midst of this, having to deal with a formal process you may be unfamiliar with and even overwhelmed by.
Whilst you may be unable to change the outcome, it may provide some reassurance to understand the process your employer must go through by law as well as your own rights and to know there is help available if you need advice or if you are being treated unfairly.
The most important thing to know is that employers need to have a solid business reason for making someone redundant. In addition, employees who have worked for their employers for more than two years have the right to claim for unfair dismissal if a fair process is not followed.
In certain, limited circumstances, employees can claim for unfair dismissal without having the required service length. For example, if the dismissal qualifies as an automatically unfair reason. This can also apply to other types of claims and will differ on a case-by-case basis.
Steph Marsh, Head of Coodes’ Employment team, explains the process in this redundancy guide for employees.
Before your employer selects anyone for redundancy, they must follow a consultation and selection process. They should let you know they are considering making a redundancy and provide the relevant information:
If your role is at risk, your employer should let you know about alternative options before making final decisions. For example, this could be alternative employment options within the company or voluntary redundancy. They should then provide details of how consultations will be carried out.
Your employer is required to start the internal consultation process as soon as possible, while the redundancies are still proposals rather than decisions already made. This would likely involve a group meeting with staff whose roles are at risk of redundancy. Your employer will need to explain the issues facing the business and their initial thoughts and plans. You will be allowed to ask questions and give your input even at this early stage.
Once your employer has a identified a pool of potential redundancies, they need to decide on which criteria to use to produce the final list. This can involve scoring individual employees on objective criteria such as performance, disciplinary record or skillset.
Under the Equality Act, it is illegal to select staff for redundancy based on protected characteristics. If this does happen, employees can potentially pursue a discrimination claim.
Once the selection process has been finalised your employer must still carry out a further consultation with you and the other chosen employees. During such consultations:
In the final meeting you have with your employer, they will need to decide whether to issue you with a redundancy notice. It is important that your employer gives you the opportunity to ask any questions or raise any points before the final decision is made.
If the decision is made to issue you a redundancy notice, your employer will need to follow up after the meeting. Correspondence should include a letter confirming your redundancy, outlining the terms and your right to appeal.
A fair redundancy process generally includes the right for every employee to appeal their employer’s decision. Depending on the size of the business, a member of the Senior Management team may step in to hear the appeal. Often, this is not possible with smaller, owner-managed businesses.
If, following the appeals process, you still feel the decision is unfair, you may decide to pursue a claim through an employment tribunal. You can pursue this option if you have worked with your employer for over two years. Alternatively, you could argue that an exemption from that requirement applies to your situation.
It is important that employees know their rights in relation to redundancy. You should always seek advice if you are unsure if your employer is following a fair procedure. If you feel that your employer has not fulfilled their legal requirements as an employer, you should seek legal advice.
Coodes Solicitors are here to help you navigate the redundancy process and its legalities. We also specialise in advising on the terms of a settlement agreement and will ensure payments and terms agreed are as favourable for you as possible.
As one of the South West’s longest established and leading law firms in Cornwall and Devon, we support businesses and employees to keep up to date with the most recent changes in Employment Law. If you need some friendly advice, call Steph Marsh on 01579 324 017 or email mailto:steph.marsh@coodes.co.uk.
Head of Employment
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