Redundancy

Expert Redundancy Law Solicitors

Redundancies can be difficult for employers because they usually mean that the company has come under some turmoil resulting in cuts having to be made or a major change in the company’s direction. Decisions about restructuring or who to make redundant is the most difficult part and even if a choice has to be made, the employer must ensure that they do it in the best way try and to avoid any potential legal repercussions. Get in touch with our expert team of Employment Law Solicitors for a no-obligation chat.

Redundancies are sometimes a necessary but unfortunate part of running a business that many businesses have to experience. There are a few reasons why a business might need to make redundancies. These include:

• To reduce costs
• Business closure
• Downsizing
• A role is no longer needed
• The business is relocating
• New processes have been introduced
• The business is changing the way it does things

If an employee is being made redundant then they could be eligible for a payment. Usually, they’ll have to be employed for 2 years to receive any kind of redundancy payment, the amount of statutory redundancy payments an employer may have to pay is as follows:

• Half a week’s pay for each full year the employee was under 22;
• One week’s pay for each full year the employee was 22 or older, but under 41; and
• One and half week’s pay for each full year the employee was 41 or older.

Length of service is capped at 20 years, and there is a cap on the amount of a week’s pay. These are minimum payments, so an employer is able to pay more if they wish.

Redundancy is a fair reason for dismissing an employee. The other reasons for a fair dismissal, are:

• Conduct
• Capability or performance
• Statutory illegality or breach of a statutory restriction, and
• Some other substantial reason

Although an employee doesn’t always need to have done something wrong to be dismissed under these other reasons, it is usually the case that they have. But, in the case of redundancy, in most cases the employee will have done nothing wrong. The redundancy dismissal will have come about because the employer has made a business decision that it no longer needs someone to fill a role.