What To Do if You’re Made Redundant

Legally reviewed by: LLM, LPC & LLB (Hons) Shereen Murphy Updated: December 6, 2022In: Employment

In September 2022, there were 75,000 workers made redundant compared to 68,000 workers in August, according to Statista.com. The UK has been seeing a steady rise in redundancies as the country plunges into what may be its longest recession on record. Additionally, with frequent news stories of mass redundancies, employees may be feeling anxious about suddenly finding themselves redundant. Therefore, with the current financial climate, redundancy is at the forefront of employees’ worries with as many as 8 in 10 young workers feeling anxious over redundancy. This article aims to alleviate some of that anxiety, and will help you know what to do if you’re made redundant. There are lots of rules that an employer will need to follow if they are planning to make some employees redundant and most employees will qualify for redundancy pay.

What To Do If You’re Made Redundant

Before or on your last day of work, your employer should give you:

Your P45 (make sure you keep this in a safe place as you will need this to give to your new employer to show how much tax you have paid in the current tax year)
Details of your workplace pension
Job references
A letter that states the date of your redundancy
Your redundancy pay paid into the same account as your wages
A written statement showing how your employer calculates your redundancy pay

Before you leave your place of employment you will likely need to return any company property. This can include items such as computers and desk accessories.

If you have income protection insurance, you will receive a payout if you have recently gone through redundancy.

What to do if you are struggling financially after experiencing redundancy?

If redundancy has left you struggling with debt, many charities can offer professional help such as StepChange or Citizens Advice.

What Are Your Redundancy Rights?

If you are in the unfortunate position of facing redundancy, it’s vital that you know what your rights are to make sure you are not missing out on any redundancy pay.

Before being redundant, your employer should consult any of the selected employees for a reasonable period. The minimum period is two weeks. However, if more than 20 employees are facing redundancy, this period extends to 30 days. If more than 100 employees are facing redundancy, this will be 45 days

Your employer will consult about any proposals to make redundancies and to get feedback before making any final decisions. Once your employer has decided who they are going to make redundant, they must consult the employees about how this will impact them.

Notice Periods

If you have 12 years or more of service, you should have a 12-week notice period.
2 – 12 years of service means you should have a 1 week of notice period per year of service.
1 month to 2 years means you should have a one week notice period.

Employers should permit all redundant employees to work their notice periods. However, some employers may put employees on garden leave. This is where employees won’t necessarily have to work but are still technically in employment.

In addition, during a redundancy, you have an entitlement to:

The ability to raise any objections to your redundancy
The ability to suggest an alternative to redundancy
Legal representation from a solicitor or from a union
Other suitable employment within the company if a position is open
Time off to look for alternative work
The right to appeal your redundancy or take it to the employment tribunal.
Redundancy pay
A paid notice period
Any money that your employer owes you (unpaid wages)

In most cases, your employer will pay you these but if your employer has gone into insolvency, you can apply to the Insolvency Service for these payments.

How Much Redundancy Pay Are You Entitled To?

When receiving redundancy pay there are two different forms you can receive.

Firstly, you can receive, ‘statutory’ redundancy pay. This is the minimum that the law states employees have a right to claim.

Secondly, you can receive ‘contractual’ redundancy pay. You can find further information about this in your contract.

To calculate redundancy pay, the government has a free online redundancy calculator that can give you a figure for how much you are entitled to. Remember to add on any holiday pay, and outstanding bonuses, commissions, or expenses that your employer owes you.

Unfair Redundancy

In some situations where your employer has not followed the correct redundancy process, you may be eligible to make a claim against your employer.

Unfair Dismissal

If your redundancy is unfair, you may also be able to make a discrimination claim or claim for unfair dismissal under the Equality Act.

Protective Awards

A Protective Award is an awarded compensation of up to 90 days’ gross pay. An Employment Tribunal will award you a Protective Award if your employer fails to collectively inform and consult you during dismissal on the grounds of redundancy.

Your Employer Owes You Money

If your employer owes you money, has made unlawful deductions from your salary, or refuses to pay you the pay you are legally entitled to, you might need to make a claim at the employment tribunal.

Helpful Links on Redundancy:

How Can an Employment Solicitor Help with Your Redundancy?

More than ever, in today’s financial crisis, it’s vital that you get all the money your job owes you if you’ve gone through a redundancy. Therefore, it’s important to make sure you’re getting all the rights and redundancy payments the law entitles you to. Our solicitors can help you claim what your employer owes you and help you through a claim if your employer has failed to follow the law regarding your redundancy.

At AWH Solicitors we offer a free 20-minute employment law consultation. Furthermore, we’ll give you advice on your problem at work on a no-obligation basis. An AWH redundancy solicitor will be able to help and provide you with a quick and effective initial assessment on a range of employment disputes.

Get in touch