This means, for example, that if you've worked for your employer for 22 years you'll only get redundancy pay for 20 of those years. More information on whether elements of the payment, such as pay in lieu of notice, is taxable is available from HM Revenue and Customs. Pay in lieu of notice is money paid to you by your employer as an alternative to being given your full notice.
If they can't pay because they're insolvent, you might be able to get the money from the government. If you've been made redundant, your employer will normally pay you either on the last day of your notice period, shortly afterwards, or on your next pay day.
Your employer should give you a written statement showing how any payment has been worked out. If you have doubts about the way your employer has calculated your statutory redundancy pay you can call the Redundancy Payments Freephone Helpline on If your employer does not give you statutory redundancy pay when you are entitled to it, you should write to them asking for payment.
If you have an employee representative, such as a trade union official, they may be able to help. You need to make a claim to the tribunal within six months, or you may lose the right to a payment. Careers webchat is available from 9. Outside of these hours, or if all advisers are busy, you can ask questions online. Chat with a careers adviser in Northern Ireland.
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Contacts for common benefits are listed below. Call Email dcs. Call Email customerservice. Comments or queries about the Blue Badge scheme can be emailed to bluebadges infrastructure-ni. For queries or advice about claiming compensation due to a road problem, contact DFI Roads claim unit. For queries about your identity check, email nida nidirect. For queries or advice about criminal record checks, email ani accessni. The test of redundancy will also be met where the type of work you carry out is not necessarily stopping, but your employer does not need as many people to carry it out for example due to an increased use of technology, or due to outsourcing.
Even if there is a genuine redundancy situation, your employer must still follow a correct redundancy process see below failing which the redundancy can still be deemed to be an unfair dismissal.
Employers often claim that there has been a reduction in the work needing to be done, but this is not always the real reason for dismissal. It is important to look at all the circumstances surrounding the redundancy. The following are examples which may indicate that the redundancy is not genuine:. A redundancy situation may arise where a business continues to operate but there is no longer a need for the skills for which the employee was taken on. For example, a person employed as a salesman for the south of UK region is made redundant when the employer changes the business to focus on the North only.
The employer is still in business, but he no longer needs any sales staff based in the South. Redundancy may also arise if an employer reorganises the business to improve its efficiency, so that fewer people are needed to do the same amount of work. In each case, it is the need for the work you do which is in your contract which must have been reduced.
Even if there is other work available for you to do, the fact that the work you were employed to do is no longer available means that you are in a redundancy situation. You may be made redundant if a new process or system is introduced which means that your job is unnecessary. The introduction of the new system or technology will not automatically mean that you are redundant.
You will be redundant only if the new system is the direct cause of your work no longer needing to be done. Some new systems or technology may just enable the same job to be done, but differently.
The job no longer exists because other workers are doing the work you carried out. You may believe that you should not have been made redundant because the tasks you were doing still need to be done, but have been given to other people to do.
The important point to note is whether the work which you were employed to do is still necessary to be carried out by a single person. If it is no longer necessary for the work to be undertaken by a single person, even if it is being disbursed to a number of other people or overseas, then your job no longer exists and you are therefore redundant.
The redundancy may still be unfair, however, if you have been unfairly selected or your employer has not followed the correct redundancy process see below. You will almost certainly be redundant in these circumstances.
If the place where you work, or the whole business is moving, a redundancy will arise if your employer has ceased or intends to cease to carry on the business in the specific place where you were employed. Even if there is a clause in your contract which requires you to work anywhere the employer asks you to, you may still be redundant if the business moves.
Your employer should consider, however, if it is possible for you to be moved to a new location, and your employer may still have to consider whether the redundancy selection pool should be widened to include the other sites see below.
Where a business is transferred from one employer to another, the transfer does not end the employment relationship. Usually, your contract of employment is carried over into the new business, with your existing terms intact including your old redundancy terms. If you are made redundant in connection with a transfer, either by your old employer before the transfer takes place, or by the new employer after the transfer has taken place, the employer would have to show that there was a real redundancy and that the transfer was not the only reason or the main reason for the dismissal.
They are more likely to do so when you have access to sensitive and confidential data as well as a heavy interaction with clients. There is no statutory right to appeal your redundancy. It is, however, good practice to be offered such a right.
If you have a contractual dismissal policy which provides for an appeal, then this should be followed. For more on this, please see below. It is also unlawful to have criteria based on whether employees chosen to be made redundant are part-time or pregnant, as this would be sex discrimination.
If you have been unfairly selected for redundancy, you may be able to claim compensation for unfair dismissal and or discrimination.
You do not need any minimum qualifying period to be able to claim compensation for discrimination. If you are in a unique role, there is no requirement for a selection pool. Similarly, there is no requirement for a selection pool if your employer closes its whole business although there may be a requirement for a pool where an employer closes just one of its sites. For example, a pool of one employee has been held to be unfair where other employees are doing the same role. Sometimes, the selection criteria has been discussed and agreed with a union or employee representative.
Such discussion and agreement is mandatory in the case of collective redundancies. The following factors are considered reasonable and in some cases expected ,when an employer is determining a selection pool:.
If your employer fails to consider if the number of redundancies can be reduced by terminating contractors and agency workers, it does raise the question of whether or not the redundancies are genuine or necessary. If a redundancy situation exists, your employer must consult all employees who are at risk of redundancy as soon as possible, informing them of the situation and discussing with them any alternatives and the implementation of the redundancy situation.
Failure to properly consult may lead to a finding of unfair dismissal by an employment tribunal. A meaningful consultation would usually incorporate at least one meeting with you. There is no statutory right for you to be accompanied at a meeting under a redundancy procedure, although it is good practice for employers to allow employees to be accompanied as it demonstrates an intention to act fairly.
There is no maximum period of consultation, but there are minimum periods employers are required to follow depending on the number of proposed redundancies, namely An employer making a collective redundancy must consult with a recognised trade union where there is one. If there is no recognised trade union, an employer must consult with employee representatives before issuing redundancy notices. There must also be standard individual consultation. If your employer intends to make you redundant, there is a legal duty for them to make reasonable efforts to consider whether there are other roles available which would be suitable for you.
If your employer gives no consideration as to whether there are any suitable alternative roles within the organisation, your are likely to have a claim for unfair dismissal.
Whether an alternative job offered is suitable will depend on the terms of the job offered and your skills, abilities and circumstances. Factors such as pay, status, hours and location are relevant when deciding if the new role is a suitable alternative.
The role does not need to exactly mirror your old position, or even be based in the same location. The tribunals have said it may also be appropriate for a senior employee to be given the opportunity to consider a more junior role at a reduced salary.
Any offer of alternative employment must be made before your current job ends. It can be made in writing or can be verbal. It must give you enough details about the new job so you know what the difference is between your existing job and the new job. Your employer should not make assumptions about what you might consider to be a suitable alternative role e.
You should be allowed to make an informed decision for yourself. You must also be offered a trial period in the new role of 4 weeks during which you can still reject the position and claim the original redundancy if it is reasonable for you to do so.
Your employer may offer you a number of alternative jobs. Each offer must give sufficient detail and you are entitled to a trial period in each, if you wish. Hide this message. Home Working, jobs and pensions Redundancies, dismissals and disciplinaries. Redundancy: your rights.
Print entire guide. Related content Dismissal: your rights Being made redundant: finding work, claiming benefits and managing debts Joining a trade union Find a job Calculate your statutory redundancy pay Redundancy payments helplines.
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