Are You Worried About Being Made RedundantOur Career Help Is Here For You & Your Career Change Being made redundant is generally where an employer needs to reduce his or her workforce and is where an employee is dismissed because the employer closes down the business, or the employer closes down the employee's workplace, or there is a diminishing need for employees to do work of a particular kind. As such redundancy is a form of dismissal from a job, but is only a reason for dismissal and it is treated separately because the employer has to take certain steps to make sure that the redundancy is carried out fairly. It is essential for the employer to go through the statutory disciplinary/dismissal procedures introduced in October 2004. Redundancy levels have been fairly low since the UK emerged from the dark days of the recession in the early 1990s, but now, with the state of the worldwide economy affecting workers everywhere, redundancy is becoming increasingly common as organizations go through major changes such as outsourcing, downsizing, restructuring, or re-engineering. However, workers being made redundant is a costly solution to an economic slowdown, warns the Chartered Institute of Personnel and Development (CIPD). Being made redundant is becoming a fact of life and, although we all hope to escape it, the reality is most of us will be faced with the news that sooner or later our jobs are being cut and that our services are no longer required. This is one of the most traumatic events an employee may experience and it is important that you are treated fairly by your employer. The event is undeniably a difficult experience, but it is important to remember that being made redundant does not reflect on one's personal ability to perform a job. In other words: It's Not Your Fault! Being made redundant is almost always shocking but it can be an opportunity in disguise as well as a disaster. Conditions For RedundancyRedundancy occurs in three main situations: job redundancy, place of work redundancy and employee redundancy. Redundancy involves either the closure, (whether temporary or permanent) of a business as a whole or closure of a particular workplace where the employee was employed or a reduction in the size of the workforce.Employers are obliged to follow certain guidelines in the event of redundancies being made, including giving advanced warning, utilizing objective selection criteria, offering alternative employment within the company where possible, assisting with job hunting and offering an appropriate redundancy package. Employers considering redundancies should make sure that all staff involved in the selection and decision-making process are aware that it is unlawful to make a decision based on age or other discriminatory grounds. Employment RightsEmployment rights and these other issues are often very complicated, and before you challenge your employer you should take further advice. Employment tribunals have established principles of good employment practice which employers should follow.Employees RightsEmployees with more than 2 years service are statutorily entitled to a lump sum from their employer, based on their age, length of service and contractual earnings up to a maximum limit which is currently £310 per week and is reviewed annually. Employees may also be entitled to more if there is a contractual right to an enhanced redundancy payment or there is a custom and practice of paying higher rates. Employees under notice of redundancy will be given reasonable time off work to seek alternative employment. Employees who are unreasonably refused time off by their employers have a right to be paid the amount they would have been entitled to receive had they been allowed time off, subject to a limit of two-fifths of a week's pay.Statutory Redundancy PayStatutory redundancy pay is calculated according to the following formula: half a week's pay for each year worked between 18th and 22nd birthday one week's pay for each year worked between 22nd and 41st birthday one and a half weeks' pay for each year worked after 41st birthday. Statutory redundancy payments are based on length of service, age (which is still allowed) and salary (current maximum £330 per week) and can be as much as £9,900.Redundancy is a fair reason for dismissal as long as it is done fairly and with due consultation, but you should ensure that you seek proper legal advice concerning your particular circumstances if you fear being made redundant.
You are here: Made Redundant Continue now to read about your Employment Rights or go to Redundancy Rights for information about redundancy rights, or go to redundancy notice for more information about your rights when selected for redundancy. Go to Small Business Ideas to see if anything else might spark your business imagination and get you started in your own business. Return to: Your Career Change Home Page
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