Redundancy Solicitors

Employers must follow certain procedures when an employee is made redundant. If your role has been selected as at risk of redundancy, you should be notified by your employer in advance. You may be offered voluntary redundancy, or the opportunity to job share. You could also be deployed elsewhere in the business.

Remember, you will normally be entitled to statutory redundancy if you’re an employee and you’ve been working for your employer for two years or more.

Negotiating a redundancy package requires a strategic approach. Firstly, it’s crucial to understand the terms outlined in your employment contract and any redundancy policies in place.

Prepare by researching standard industry packages and consulting legal guidance if necessary. Engage in open dialogue with the employer or HR representative, emphasising a cooperative attitude while advocating for fair treatment.

Present a clear case detailing your contributions to the company and any mitigating factors that could enhance your package. Highlight any unique skills or experiences that justify a more substantial settlement. Be open to compromise, demonstrating flexibility where possible, but ensure that the final offer aligns with your rights and the company’s legal obligations.

Document all communications and agreements in writing to avoid misunderstandings and preserve your rights. It is advisable to seek help from an experienced solicitor to ensure a favourable outcome.

Redundancy rights are safeguarded by law. If faced with redundancy, you have the right to a fair consultation process, with the employer obliged to explore alternatives to redundancy before finalising any decision.

You should be provided with a notice period depending on your length of service, during which you’re entitled to a certain amount of paid time off to find a new job.

Redundancy pay, based on your age, length of service, and salary, is also a legal entitlement unless you’ve worked for the company for less than two years. Additionally, you have the right to be offered suitable alternative employment within the company if available.

Unfair dismissal due to redundancy is protected, and if you believe you’ve been unfairly treated, you can file a claim with an employment tribunal within three months less one day. The ‘trigger date’ is usually the date you were unfairly dismissed but it is important to get legal advice on limitation dates so you don’t miss the deadline. Familiarising yourself with these rights and seeking legal advice, when necessary, can ensure fair treatment during the redundancy process.

Unfair redundancy encompasses various situations where an employer doesn’t follow legal procedures or engages in discriminatory practices.

Examples include selecting an employee for redundancy based on factors like gender, age, race, disability, or pregnancy status, rather than genuine redundancy criteria.

Unfair redundancy also occurs when an employer fails to offer suitable alternative employment within the organisation, especially when such opportunities are available.

Inadequate consultation processes, insufficient notice periods, or not considering suitable alternatives to redundancy before making an employee redundant are also considered unfair.

Employers are obligated to adhere to redundancy laws and regulations to ensure fair treatment for employees, and any deviation from these guidelines can be challenged through the employment tribunal.

Seeking legal advice and understanding your rights can help determine if redundancy procedures have been unjust and provide a basis for legal action if necessary.

Obtaining a solicitor for redundancy can be beneficial, especially in complex or disputed situations. Our redundancy claims solicitors specialising in employment law can provide crucial advice on your redundancy rights, ensuring you understand the process, receive a fair settlement and guide you through the legal process. Our expert team can help you challenge unfair redundancies both pre and post-dismissal.

We can review your employment contract, including post-termination restrictive covenants, assess the fairness of the redundancy procedure, and provide guidance on potential claims for unfair dismissal or discrimination. Our solicitors can also negotiate on your behalf, striving for a more favourable redundancy package or settlement.

While not mandatory, a solicitor’s expertise can offer clarity, protection, and support during what can be a challenging and uncertain period. Seeking guidance from resources such as Citizens Advice or the Advisory, Conciliation, and Arbitration Service (ACAS) are great but may not be specific or bespoke to your individual situation.

If you’re made redundant, you could be offered a settlement agreement (previously called a compromise agreement). This will provide an exit strategy for you and finalise your severance package.

It’s essential that any agreement is checked by a specialist redundancy solicitor, as signing a settlement agreement means giving up your right to bring an employment-related claim against your employer.

We’ll review the package you’ve been offered, highlight any issues and look at the future consequences of signing the agreement. If we think we can negotiate a better redundancy package for you and your circumstances, we’ll talk to you about the next steps.

Statutory redundancy pay is the payment employers are legally required to make to qualifying employees. The rate of statutory redundancy pay qualifying employees are entitled to is set by the Government.

Some employers will also offer an enhanced redundancy package meaning you can receive an additional payment above and beyond statutory redundancy pay or that you may receive a payment even if you do not qualify for statutory redundancy.

You will be entitled to statutory redundancy pay if:

• You have been continuously employed by your employer for two years or more
• You lost your job due to a genuine need to make redundancies
• You are classed as an employee (including part-time employees)

However, you could lose your right to statutory redundancy pay if:

• You turn down an offer from your employer of a suitable alternative job without good reason
• You leave before your job is due to end (e.g. because you have found a new job)
• You are sacked, e.g. for gross misconduct, before your job ends

Any statutory redundancy payment you are entitled to will be based on:

• Your earnings before tax (gross earnings)
• How long you have worked for your employer
• Your age during your employment

You will be entitled to:

• Five weeks’ pay for each full year you worked for your employer where you were under the age of 22
• One week’s pay for each full year you worked for your employer where you were aged 22-41
• Five weeks’ pay for each full year you worked for your employer where you were aged 41 or older

The maximum you can claim is £538 per week up to a total of £16,140 and the length of service is capped at 20 years.

You can use the Government’s redundancy pay calculator to see exactly how much you may be entitled to.

Any redundancy payment up to £30,000 is tax-free. Non-cash benefits included as part of your redundancy package (e.g. a company car of computer) will count towards this total.

Any holiday pay owed, unpaid wages, bonuses and overtime payments will all be taxed as normal wages, even if they are paid after your employment has ended.

There is no set time limit for an employer to make a redundancy payment, but they should not unreasonably delay payment and usually, we would expect it to be sent to you within three to six weeks of leaving your employment.

If you are unhappy with the amount of a statutory redundancy payment or you have not received a payment you are entitled to, you will have six months from the date of the termination of your employment to make a claim.

Unless it is specified in your contract, you will not be entitled to an enhanced redundancy package. However, there are various reasons an employer might offer an enhanced package which might give you room for negotiation, including:

• To reward loyalty and length of service
• As a payment in lieu of notice (where your employer wishes to place you on ‘garden leave’ rather than have you work out your notice)
• Where the reasons for the redundancy could be considered questionable (in which case the enhanced package would normally be conditional on you signing a settlement agreement)

Yes, an employer can make you redundant while you are pregnant or on maternity leave, as long as the reason for the redundancy is unconnected to this.

As with any other employee being made redundant, your employer will need to consult you about the possibility of redundancy and offer you suitable alternative employment where available.

If you believe your employer has targeted you for redundancy due to your pregnancy or because you are on maternity leave, you may have grounds for an unlawful discrimination claim.

If you are made redundant due to your employer becoming insolvent, you will be treated as a ‘preferential creditor’. This means that, if the company is liquidated, paying you any outstanding wages, redundancy entitlements etc. will be given a high priority.

Where there are not sufficient funds to pay you what you are owed, you may also be able to apply to the government for a redundancy payment, as well as unpaid wages, holiday pay, overtime, commission and pay in lieu of notice.

You have the right to move into another role in the business if it is classed as a ‘suitable alternative’ to avoid redundancy. You are also entitled to a four-week trial period for any alternative employment you have been offered within the company.

This trial could be extended if you need training, but any extension must be agreed in writing before the trial period starts.

Within this trial period you should tell your employer if you decide the new job is not suitable. If you do this promptly and within the four-week timeframe, you remain entitled to statutory redundancy pay and your employment rights will be unaffected.

If you do not give notice within the trial period, you will lose your right to claim statutory redundancy pay.

Remember, you may lose your right to statutory redundancy pay if you unreasonably turn down suitable alternative employment. Whether the job is suitable can be discussed with your employment law solicitor.

If you have been made redundant, you are eligible to a reasonable amount of time off to:

• Look for new job
• Arrange training to help you find a new job

How long you can take will depend on your circumstances but generally, the most your employer has to pay you is 40% of one week’s pay.

In most cases, there will be no restriction on when you can take up new employment after being made redundant. However, it is worth checking whether you can take up any job after your leave because a lot of employment contracts contain restrictive covenants which attempt to restrict future employment, eg: for a competitor.

However, where you are offered an enhanced redundancy package, you may be asked to agree not to take alternative employment for a set time after being made redundant. This is usually because your previous employer believes your knowledge or skills would be useful to a rival firm.

You have the right to appeal being made redundant if you believe your employer’s reasons for selecting you were unfair or that they did not carry out a fair redundancy process.

Before making a claim, you should first discuss your concerns with your employer and give them the opportunity to clarify their reasons and try to resolve the situation amicably.

Your employer will need to accept or reject your appeal in writing. If they reject your appeal or fail to respond, you can then take your claim forward to an employment tribunal. However, you may need to refer the claim to Acas first for early conciliation.

If you believe you have been treated unfair during redundancy, our expert employment lawyers can advise and represent you to help you get a fair outcome as quickly and simply as possible.