Entitlement To Redundancy Pay
Employees facing redundancy are entitled to a statutory payment. This is a lump sum dependant on the following criteria:
- Redundancy is applied
- Employees have accrued over 2 years of continuous service since the age of 18
- Workers were an employee of the business
- No suitable alternative employment was available from the employer.
- If an employee refuses suitable alternative employment, they will lose the right to statutory redundancy pay.
- Alternative employment must be offered before the termination of the previous position and must start immediately or within 4 weeks of the termination of the previous position.
- There should be a 4-week trial period for positions that are significantly different from the previous role.
- Employees are entitled to redundancy pay if they refuse an alternative role within the trial period. There are few guidelines to suitable alternative employment and unreasonable refusal.It is the employer’s responsibility to prove both cases if taken to a tribunal. Considerations will be made towards pay, location, work status, hours and schedules and also the employee’s domestic circumstances.
- Specific rules regarding lay-offs and short-time contracts.
- Contracts that cater for temporary lay-offs without pay, or short-time placements with a reduction of pay, are entitled to a redundancy pay claim if laid off or placed on short time for 4 consecutive weeks or for 6 weeks in a 13-week period.
Statutory Redundancy Payment Amount
The payment amount is calculated from the number of weeks earned multiplied by the lower of either their average weekly wage or £508.00.
The number of weeks earned depends on continuous employee service and age:
- For 18–21-year-olds—half a full week’s pay for each year of service
- For 22–40-year-olds—a full week’s pay for each year of service
- For 41–65-year-olds—a week and a half’s pay for each year of service
The maximum number of years in service is capped at 20.This offers a maximum redundancy payout of £15,240.00
Contractual Redundancy Pay
If an employer doesn’t adhere to the legal guidelines relating to redundancy pay or provides a contract that defers from statutory regulations, you should take expert legal advice immediately. These employers are breaking the law and are liable for prosecution.
Employment Solicitors Leeds are specialists in employment services and are here to guide you through every aspect of your contract, including fair treatment during redundancy and protecting your rights as an employee.
Making A Claim For Redundancy
You must make your redundancy claim within 6 months of termination. We will guide you through every step and handle all the legal details on your behalf.
In cases where an employer doesn’t follow the correct protocols for redundancy, we can raise an Employment Tribunal to seek compensation in any area of illegal or unfair treatment. Employers and employees should always consult specialist redundancy solicitors to ensure they are following the correct guidelines set out by law.
If you feel that you are a victim of unfair or illegal redundancy practices and are entitled to make a claim against your employer, contact our specialist redundancy solicitors now. Our expert solicitors will protect every aspect of your rights and entitlements and will help you achieve the best possible outcome and award for your situation.