Redundancy Solicitors in Essex – Romford, Brentwood, Upminster
Understanding Redundancy Law in the UK
What is redundancy?
Redundancy usually occurs when the job or one or more employees is no longer required by the employer. This may be because the employer needs to cut costs or make efficiencies, is moving to a different location, or because the employer is shutting down completely.
What is statutory redundancy?
All employees who have been in a job for two years or more are entitled to a statutory redundancy payment. Some employers also provide contractual or enhanced payments upon redundancy. Untaken holiday and notice must also be paid.
If you are an employer who needs to make redundancies, our team can make sure that you follow the correct procedure including how to select roles for redundancy, how to consult with the affected employees and how to calculate redundancy payments. Failure to follow the correct procedure may give rise to a claim for unfair dismissal.
If you are an employee who has been selected for redundancy, you may be given a settlement agreement, in which case we can provide independent legal advice. We can also advise if you feel that your selection for redundancy was unfair.
How Mullis and Peake Redundancy Solicitors Can Help You
Mullis and Peake Redundancy Solicitors work with both businesses and individuals to make sure there is a fair redundancy process.
Clear guidance on your redundancy rights
Employers must follow a fair procedure when deciding which roles are redundant. The exact process to be followed depends upon how many employees are being made redundant at the same time. All affected employees must be consulted throughout the redundancy process and the employer must consider whether there are any alternatives to compulsory redundancies.
Advice on settlement agreements
A settlement agreement is a contract that is legally binding, made between an employee and an employer. The agreement settles any claim the employee may have against an employer which is usually in exchange for an enhanced payment. You can learn more about settlement agreements (formerly compromise agreements) here.
The Redundancy Process in the UK:
A fair redundancy process is one which follows all the requirements set out by law, and which supports the staff affected. A fair process will always involve consultation, no matter how many employees are at risk of redundancy. If any employee has a redundancy policy, then that policy should be followed.
Employment Law Enquiry
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Redundancy Legal Advice for Employers
Will all employees being made redundant receive severance pay?
Any employee with two or more years of continuous service will be entitled to a statutory redundancy payment. An employer may choose to offer an enhanced redundancy payment.
The Role of Redundancy Solicitors
Representing Employers in Redundancy Cases
The first step should always be to consider whether redundancies are really necessary. Are there other ways to cut costs? Every alternative should be explored before employees are put at risk.
If redundancies cannot be avoided, the employer must then consult with the affected employees. The form that consultation takes, and how long the consultation period is, will depend upon how many employees are at risk of redundancy, and whether those employees are Trade Union members.
If you are an employer you can find out rules and advice here.
Protecting Employee Rights
Problems at work can take many forms, you can find out more about employee legal advice here.
Benefits of Hiring Redundancy Solicitors
Expertise in Employment Law
Our employment specialist has over 20 years of experience in advising both employers and employees on redundancy issues.
Effective Communication with Clients
We aim to provide clear and concise advice, in easy-to-understand terms.
Types of Redundancy Cases Handled by Solicitors
Individual Redundancy Cases
If you are an employee who has been selected for redundancy and offered a settlement agreement, we can advise on the terms of the settlement agreement and make sure that it covers everything you are entitled to.
Redundancy Disputes and Claims
If you believe that your role is not really redundant, or that your selection for redundancy was not fair, we can advise as to your legal position and the options available to you.
Notice Period and Severance Pay
If you are selected for redundancy, you must be paid in respect of your notice period. You will also, if you have two or more years of continuous employment, be entitled to a statutory redundancy payment. Any entitlement to an enhanced redundancy package will be at your employer’s discretion.
Alternative Employment Options
Once a role has been identified as redundant, an employer must consider whether there are any other vacancies within the business that can be offered to the affected employee. The question of whether any available roles are suitable can be a complicated issue – specialist employment legal advice can help both employer and employee in this situation.
What can Redundancy solicitors do for you?
Representing Clients in Employment Tribunals
If you believe that your selection for redundancy was unfair, or that the correct procedure was not followed, you may be able to bring a claim for Unfair Dismissal. An employment solicitor can advise as to whether you have a claim, as well as conducting the claim on your behalf.
Negotiating Settlement Agreements
If you have been given a settlement agreement, a specialist employment solicitor may be able to negotiate with your employer to increase the sums offered.
Frequently asked questions
Statutory redundancy is paid by the employer. If the employer is insolvent, employees can instead claim from the Redundancy Payments Service.
Statutory redundancy pay is calculated as follows:
- half a week’s pay for each full year you were employed and under 22 years old
- one week’s pay for each full year you were employed and between 22 and 40 years old
- one and a half week’s pay for each full year you were employed and 41 or older
Redundancy payments are capped at £700 a week (£643 if you were made redundant before 6 April 2024).
You can get a payment for a maximum of 20 years that you were employed at the business.
You should be given at least the length of your statutory notice period before your employment ends.
If you have been continuously employed for two or more years, you will qualify for a statutory redundancy payment.
Redundancy usually occurs when the job or one or more employees is no longer required by the employer.
This may be for many reasons but might be because:
- the employer needs to cut costs or make efficiencies
- the employer is moving to a different location
- the employer is shutting down completely
Employers can use a variety of methods to select employees for redundancy. Whatever method is used, it must be fair, and must not place anyone at a disadvantage because of a protected characteristic such as sex or disability.
“At risk” means that an employer has identified a role as potentially redundant. Affected employees must be notified as soon as a role is at risk.
Consultancy processes differ depending upon the number of redundancies being made at the same time. In all cases, the affected employees must be kept fully informed and any proposals they make to try and avoid redundancy must be considered.
If your employer wants to you work your notice period, then you must. Often, though, employers will prefer to make a payment in lieu of notice instead.
Your statutory notice entitlement will depend upon how long you have been employed, at one week per year up to a maximum of 12 weeks.
Mullis & Peake have solicitors in employment law ready to help you. Contact us online today or call us on 01708 784000.
Alternatively, request a call back to have one of our experts contact you at a time that suits.
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Holly is a Member and Head of Mullis and Peake’s Dispute Resolution Department
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