Redundancy can be a difficult experience for employees, bringing uncertainty and potential financial worries. However, employment law in England and Wales provides clear rights and protections to ensure fair treatment during the consultation and redundancy process.
B P Collins’ employment team explores your rights as an employee in this situation.
What is mass redundancy?
Mass redundancy occurs when 20 or more employees are dismissed within a 90-day period at a single establishment. Legislation within the Employment Rights Act ensures that specific legal requirements must be followed in these situations, including consultation periods, notification procedures, and the consideration of alternative employment.
The right to consultation
One of the most important rights during a mass redundancy is the right to consultation. Employers must engage in a meaningful consultation with affected employees or their delegates, such as a trade union or elected employee representatives. The purpose is to explore alternatives to redundancy, such as reducing working hours, offering voluntary redundancy, or redeployment to other roles.
- For 20-99 employees, the consultation must last at least 30 days before any dismissals.
- For 100 or more employees, the consultation period must be at least 45 days before dismissals can occur.
Employees can make a claim following an employer’s failure to collectively consult in mass redundancies.
The right to information
Employees have the right to be informed about the redundancy process. This includes being told:
- The reasons for the redundancies
- The number and roles of affected employees
- The selection criteria
- The timeline for the redundancy process
Employers are legally required to provide this information. If details are unclear or insufficient, employees can request more information.
The Right to Fair Selection
The selection process for redundancy must be fair and based on objective criteria. Employers should not select employees based on discriminatory factors, such as age, gender, race, or disability. The criteria for selection might include:
- Standard of work and / or performance
- Skills, qualifications and /or experience
- Attendance or disciplinary records
If you believe the selection process is unfair or discriminatory, you can challenge the decision, but it is advisable to seek legal advice beforehand.
The right to redundancy pay
Employees with at least two years of continuous service are entitled to statutory redundancy pay, which is based on:
- Your age
- Your length of service (capped at 20 years)
- Your weekly gross salary (up to a cap of £700, while the maximum statutory redundancy pay you can get is £21,000).
The statutory redundancy pay is calculated as:
- Half a week’s salary for each year under 22.
- One week’s salary for each year 22 or older but under 41.
- One and a half week’s salary for each year 41 or older.
Statutory redundancy pay is subject to tax and national insurance contributions. Your employer may offer enhanced redundancy packages, so it’s worth reviewing the offer carefully.
The right to alternative employment
If there are suitable alternative roles within the company, your employer must offer you the opportunity to apply for these positions before proceeding with redundancy. Refusing a suitable alternative job without good reason could result in losing your entitlement to statutory redundancy pay.
Protection against unfair dismissal
During the redundancy process, employees are protected from dismissal for reasons unrelated to redundancy. For example, it’s unlawful for an employer to dismiss an employee for asserting their redundancy rights or for discriminatory reasons. Employees on maternity leave or with protected characteristics under the Equality Act 2010 (such as pregnancy or disability) are also protected from dismissal.
Employees may have the right to bring an ordinary unfair dismissal claim, even if they have less than two years’ service.
What next?
If you find yourself facing redundancy, don’t delay in seeking expert legal advice to ensure your rights are respected and protected throughout the process. B P Collins’ employment team can help you today.
We can also act as an independent law firm for a company’s employees to engage when a business or organisation is making mass redundancies. This ensures the process is well managed and as stress free as possible.
Our HR2Help team provides training for employees facing redundancy which includes practical support on re-entering the job market, dealing with redundancy, CVs and preparing for interviews. To find out more visit: How HR2Help can support you.
If you are an employee, our team of lawyers and HR professionals are here to help and support you throughout the redundancy process.
Please email enquiries@bpcollins.co.uk or call 01753 889995 for further advice and information.
