How Does Redundancy Work?

Legally reviewed by: LLM, LPC & LLB (Hons) Shereen Murphy Updated: October 7, 2022In: Employment

Since Covid businesses of all sizes have been constantly adapting and changing to fit the rapidly changing economic times. In July 2022 there were 54,000 redundancies in the UK. However, the highest this figure got was November 2020, when there were approximately 402,000. Many businesses are re-evaluating their business strategy and staffing requirements. This can result in redundancy being a real possibility for employees that previously felt they had a high level of job security.

What is Redundancy?

Redundancy is a way in which you can be dismissed from your job and is used when employers need to reduce their workforce.

What You Might Be Eligible For?

If you’re being made redundant, you might be eligible for certain things, including:

• redundancy pay
• a notice period
• a consultation with your employer
• the option to move into a different job
• time off to find a new job
• You also have specific rights if your employer is insolvent.
• You must be selected for redundancy in a fair way, for example, because of your level of experience or capability to do the job.
• You cannot be selected for redundancy because of age, gender, or if you’re disabled or pregnant. If you have been selected and you suspect it is for one of those reasons, you could be classed as unfair dismissal.

The Redundancy Selection Process

When being selected for redundancy, your employer must conduct the process in a fair and objective way, following the accepted and evidence-based method. This method can include:

• Self-selection (when a candidate volunteers for redundancy)
• Disciplinary records
• Staff appraisal markings
• Skills
• Qualifications

In some cases, an employer can make an employee redundant without having to follow a selection process. This can happen when the job no longer exists. A situation like this would happen when a company is closing a whole operation which therefore makes all related staff redundant. Additionally, this could happen if you’re the only employee in a particular part of an organisation. An employer can also offer an employee a different role if one is available.

Unfair Grounds for Redundancy

You may have been the victim of an unfair selection for redundancy if you suspect that you have been made redundant for any of the following reasons:

• Sexual orientation
• Race
• Disability
• Age
• Your flexible working application
• If you refused to sign a working-time opt-out agreement
• An affiliation to a trade union Read more about the next steps to take if you have been selected on unfair grounds.

This is not a complete list, and situations like this are often on a case-by-case basis. If you would like to talk to someone about whether you can pursue an unfair selection for a redundancy claim.

Read more reasons for unfair grounds for redundancy here.

Your Entitlements

If you are being made redundant, you are entitled to a consultation with your employer. During this time your employer will be required to answer your questions about why you’re being made redundant and whether there are any alternatives to redundancy. Additionally, there are rules around the consultation process that an employer must follow. If your employer does not consult an employee correctly, the employer can be referred to an employment tribunal

Getting the Right Legal Advice from a Redundancy Solicitor

If you are an employer that is looking to cut down on your workforce, it’s important to get the right legal advice as it can save both time and money. Additionally, as an employee, it’s important to know your legal rights when it comes to redundancy. A legal expert can help you determine if your redundancy is fair and deliver for you the best possible outcome.

How a Redundancy Solicitor Can Help with an Unfair Redundancy Claim?

We are on hand to help our clients with cases where they have been unfairly treated by their employers. Contact us today if you feel like you have been exposed to unfair selection for redundancy criteria and let us assist you in constructing a strong case.