What are my rights if I am made redundant?

By 16th September 2020 Disputes No Comments

The coronavirus crisis has affected many businesses and job losses have unfortunately increased. We understand how difficult and confusing these times are for employees and employers and are on hand to help.

If you were recently made redundant or are worried that you might be, here is some important information on your redundancy rights:

What is redundancy and what are my rights?

Redundancy is different from getting fired – it happens when employers want to reduce their workforce and employees have legal rights and are eligible for:

  • Redundancy pay – if you have been employed for two years or more.
  • Consultation from their employer.
  • The option to move to a different job and time off to find a new job.

Employees are also eligible for a notice period that depends on how long you have been employed. Employers should always give you a notice.

If you have been employed for anywhere between one month to two years you are entitled to at least one week’s notice. If you have been employed from two to 12 years you are entitled to one week’s notice for each year and 12 weeks’ notice if employed for 12 years or more.

What redundancy pay I am eligible for?

As mentioned above, you have the legal right to for redundancy pay only if you have been employed for two years or more.

There is usually a statutory minimum but sometimes employers are more generous. Your employment contract should include all the details.

Your redundancy pay is calculated from your age, length of employment and your salary. What you are entitled to:

  • If you are under 22 years old, you are entitled to half a week’s pay for each full year worked.
  • If you are between 22 and 41 years old, you are entitled to a week’s pay for each full year worked.
  • If you are 41 or older you are entitled to one and a half week’s pay for each full year worked.
  • If you still had holiday owed when you were made redundant, you are entitled to be paid for it.

Calculate your statutory redundancy pay here.

I was made redundant in the time of COVID-19, are my rights different?

Your rights are not different, but you might have the option to win your job back. If you have been made redundant after the 28th of February 2020 because of the coronavirus pandemic, your employer might be able to re-employ you on the coronavirus job retention scheme.

You can check if you are eligible here.

The Coronavirus Job Retention Scheme ( CJRS) will end on the 31st of October 2020.

Unfortunately, your employer cannot be forced to put you on furlough if they want to make you redundant – it must be agreed from both sides.

However, if your employer made you redundant when they could have put you on furlough at no additional cost, you may have a good case to argue unfair dismissal.

Employees that have worked for two years or more have the right to claim unfair dismissal. Workers that are on casual or zero-hours or have less than two years’ service cannot claim for unfair dismissal.

I was made redundant while on furlough, do my rights change?

The same legal rights apply even if you were made redundant while on furlough. You should be able to see all your redundancy rights in your employment contract.

 

We are here to help you with any concerns and to consult you about your redundancy rights. Please contact us via email, telephone or by filling in our website contact form.