Employees who are dismissed by reason of redundancy may be entitled to a statutory redundancy payment.
There are three main types of redundancy situation:
- Business Closure – closure of the business at which the employee was employed.
- Workplace closure – closure of a particular workplace where the employee was employed.
- Employee – Having a reduced requirement for the employee to carry out work of a particular kind.
Where there are 20 or more employees being made redundant over a period of 90 days or less, the employer has a duty to inform and consult employee representatives.
Redundancy is a potentially fair reason for dismissal. However, an employee may be able to challenge it if the employer has failed to:
- identify an appropriate pool for selection
- consult with individuals in the pool
- apply objective selection criteria to those in the pool
- consider suitable alternative employment.
Where an employer is insolvent or refuses to make a redundancy payment, an employee may apply to the Secretary of State for a redundancy payment out of the National Insurance Fund.
Our specialist employment lawyers can advise on all aspects of redundancy, business reorganisation and restructure. For a free, no obligation fact finding meeting, complete our online enquiry form or call 0800 915 6037.