Businesses need to make redundancies or restructure for various reasons. Whether through growth or other reasons, the aim is always to cause minimum disruption and limit any legal disputes or Tribunal claims by putting into place a good procedure.
What is a redundancy and how do I dismiss fairly?
Redundancy is one of the five fair reasons for dismissal and includes where:
- fewer employees are required to undertake a particular kind of work
- there is a closure of a place of work or the whole of the business
The key to a fair redundancy is the procedure which, includes:
- early and detailed consultation (this might include representatives)
- correctly identifying pools of employees (similar work/interchangeability of skills)
- fair and non-discriminatory selection criteria being chosen and applied (last in first out rarely works)
- considering suitable alternative work and other ways to avoid redundancies
By getting legal advice from a solicitor early on, it allows your businesses to be proactive rather than reacting to employees who have obtained legal advice on what is happening.
Statutory Redundancy Payment
If you make an employee, with a least two years’ continuous employment redundant, they are entitled to a statutory redundancy payment which is calculated using a set formula based on the employee’s age, length of service and weekly pay. This is:
- one and a half weeks’ pay for each complete year of service after age 41;
- one week’s pay for each complete year of service between ages 22 and 40;
- half a week’s pay for each complete year of service under the age of 22.
What next? How can we help you?
We can help you at all stages of the process, including any business decisions. We can meet you at our offices, at your office, or elsewhere in Guildford, Godalming, Woking & surrounding areas of Surrey.
As well as providing advice on redundancy law, we will review or draft any necessary compliance letters. If you need additional support or resources we can arrange for someone with HR experience to come and take Minutes, support any Chair, or even chair the meetings for you.
To provide some useful information, whilst online, we have employment law checklists available. You can also sign up for regular updates.
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Are you an employee worried about being made redundant? More information on redundancy advice can be found here.