To implement redundancies, employers have to follow a sequence of actions, all laid out in legislation and the Employment Rights Act 2011. Specific conditions have to exist and your employer can only seek to make you redundant when they have stopped (or plans to stop) doing what you were hired to do, have no need for your skills because it’s “ceased or diminished” or is “expected to cease or diminish”, have no option but to move its operations to a location beyond reasonable commuting distance or have ceased trade.
Once the need to seek redundancies has been decided the employer them has to inform the affected staff and open up channels of communication for consultation. It is the responsibility of the employer to inform all potentially affected staff of the plans as early as possible. Most large organisiations have redundancy policies and the HR department can support employees and managers in discussing the news.
The consultation is critical and the employer must clearly explain the criteria they have used for selecting the affected people being made redundant and be open to discussions.
Statutory consultation periods may vary if more than 20 but less than 99 are being made redundant the consultation has to start at least 30 days before the first dismissal takes place.
Where 100 or more staff are affected they must begin at least 90 days in advance. The employee must then be issued a formal notice of redundancy and they are the same as any type of dismissal (i.e. 1 months’ notice etc.) During this time the employee is entitled to paid time off to attend interviews.
Redundancy pay guide
If you have been working for the same employer for more than 2 years you will be entitled to at least the minimum statutory redundancy pay which is tax free up to £30,000.
Unfair dismissal
A dismissal is unfair if the employee was fired for an unfair reason or the employer did not follow the correct procedures. If you were dismissed for exercising your legal rights it will automatically be classed as unfair dismissal.
A tribunal is likely to find these reasons justifiable:
- Incapacity – in terms of qualifications, competence or health (excluding disability)
- Serious or repeated misconduct – theft, intoxication, leaking confidential information, regular absences etc.
- Redundancy – providing the method for selection was fair
- The Employment Equality (Age) Regulations 2006 states that forcing someone to retire below the age of 65 is unfair.
A constructive dismissal is where an employee resigns because their employer has acted so as to make continued employment impossible. A tribunal will look at whether the employer had a proper disciplinary procedure, and whether it was followed. Written warnings aren't obligatory in every situation; in cases of serious misconduct, immediate dismissal can be perfectly fair, for example. If the allegations are not investigated thoroughly, or if you're not given the chance to tell your side of the story, your claim is more likely to be successful.
To bring a claim of unfair dismissal you must:
- Have a proper contract of employment. If you are a casual or temporary worker, you may not have any protection
- Have been employed by your organisation for one year without any breaks
- Be under 65
- Work in the UK
Voluntary redundancy
Voluntary redundancy occurs when an employer offers a financial incentive for employees to leave a company voluntarily, in order to avoid having to select people for redundancy. Voluntary redundancy still constitutes a dismissal and all the same rules apply as a compulsory redundancy. Often, employers will offer higher than normal levels of redundancy compensation as an incentive for staff to leave voluntarily.
Finding your next job
Top tips:
- Make the most of your transferable skills and experience
- Network! 60% of jobs are found via networking so let your friends, family, and ex work colleagues know you are searching for work
- Brush up your CV
- Make sure your LinkedIn profile is up to date and that you have sufficient connections
- Make sure you know what you are going to say at an interview to explain why you were selected to be made redundant
- If you would like a Careers Team member to check over your CV or covering letter email us at careers@theimi.org.uk with your membership number
At Risk of Redundancy
If you have been made redundant in the last 13 weeks, you may be eligible for Rapid Response Service (RRS) funded training. If you require a specific qualification or accreditation to apply for work in your chosen occupation, make enquiries about RRS during your first "back to work interview" at the Jobcentre Pus or speak to a National Careers Service Advisor. You may be able to access RRS funding to complete an IMI Accreditation or similar.
For more information
IMI members can claim 45 minutes of free legal guidance per topic (up to £150 each) on a range of subjects, together with a 15% discount on any further consultation with Taylor and Emmet Solicitors.
