Redundancy is when an employer dismisses an employee because their job no longer exists. It can be a difficult and stressful experience for both the employee and the employer. In the UK, several laws govern redundancy, and employers have several responsibilities to their employees.
What are the legal requirements for redundancy in the UK?
The following are the key legal requirements for redundancy in the UK:
- Consultation: Employers are required to consult with their employees before making them redundant. This consultation must be fair and reasonable, and it must allow employees to raise any concerns they have about the redundancy.
- Notice pay: Employees are entitled to a minimum of one week’s notice pay for every full year they have worked for their employer, up to a maximum of 20 weeks.
- Redundancy pay: Employees employed by their employer for at least two years are entitled to redundancy pay. The amount of redundancy pay an employee receives is calculated based on their age, length of service, and weekly pay.
- Help to find a new job: Employers are required to help employees find suitable alternative employment. This can include providing them with access to training and job search resources.
How to conduct redundancy procedures legally in the UK
Here are some tips on how to conduct redundancy procedures legally in the UK:
- Start by assessing the business need: Before you start any redundancy procedures, you need to make sure that there is a genuine business need for the redundancies. This means that you need to be able to show that the redundancies are necessary for the survival or efficiency of the business.
- Consult with your employees: Once you have established that there is a genuine business need for the redundancies, you need to consult with your employees. This consultation must be fair and reasonable, and it must allow employees to raise any concerns they have about the redundancy.
- Select employees fairly: When selecting employees for redundancy, you must select them fairly. This means that you must not discriminate against employees on the grounds of age, sex, race, disability, or any other protected characteristic. They must be put in a “fair pool” for selection and a selection criterion should be applied, if needed.
- Give employees notice: Once you have selected employees for redundancy, you must give them notice of their dismissal. The amount of notice you need to give employees depends on how long they have worked for you.
- Pay employees redundancy pay: If employees have been employed by you for at least two years, you are required to pay them redundancy pay. The amount of redundancy pay an employee receives is calculated based on their age, length of service, and weekly pay.
- Help employees find a new job: If employees are made redundant, you are required to help them find a new job. This can include providing them with access to training and job search resources.
For further information on how you can follow the redundancy process while abiding by the law book an appointment with us today at contact@davenportsolicitors.com or call us at 02079036888.
