One of the biggest fears of any employee is the day they are told that their particular job is no longer necessary and that you are going to be made redundant. It could be bad news indeed, especially when you have worked so long in the company or where you have no other option of getting another job. How do you deal with it?
First, you have to understand that being made redundant is not a crime or illegal and every employer has a right to do that. An employer can choose to make you redundant based on these common reasons:
Closure of Business Location
If the place you are working in is a branch of the office that needs to be closed, for any reason, then you may be up for redundancy, since your services are no longer needed. This is also the case when the business has to close or fold up altogether.
Change in Business Location and Attractive Packaging of Products
If the business has to be moved to another state or even another country, then the employee may be redundant since he may not be a part of the business in the new location and also psychology of packaging colors.
Work No Longer Needed
When the type of work you do is no longer needed, because of a decrease in workload or if the company does not need that type of service again, then you are at the risk of being made redundant.
These are very justifiable reasons indeed but can affect you negatively. However, as justifiable as it may be, your employer may not have gone about it the right way, and it may be much worse for you. This is because there is a process surrounding redundancy, where you might even be able to save yourself. If this process does not happen, then you have been unfairly made redundant.
What is the Redundancy Process
Every employee who plans to make his employees redundant must follow a process that seems only right and fair. The first of this process is to give the employee notice. This notice must come with due time while spelling out the reasons why they are being made redundant. Time is of importance as it may allow the individual to follow the matter up, or plan their life accordingly. Also, it is fair that the employer tells on what grounds employee is being considered for redundancy. The employee has to know that they were not unfairly selected, based on reasons like sex, age, race, or even religion. It has to be a fair reason that deals with the business.
Now, when an employee is at the risk of redundancy, he has the chance of meeting with the employer, where they discuss things. One of the matters that arise is if the employee cannot be taken under any other department or work in another part of the office. This has to be duly deliberated, making redundancy seem like the last option.
If the employees are 20 or more, then the process may be longer and may even involve trade union representatives or any other groups, and it is to last for no less than 30 days. If the people are 100 or more then the consultation period lasts for no less than 45 days. This is to make sure that things are fully reviewed and redundancy becomes a decision where it becomes inevitable.
When an employee is made redundant, he is entitled to payment by the employer. The employer may pay to the terms of the agreement set in the contract of employment, or use the one set by the state. In any case, an employee is only entitled to redundancy payments if they have been working in the organization for two years or more. The payment is calculated as
- A week and a half’s pay for each year the employee worked while they were age 41 and above.
- A week’s pay for every year the employee worked while they were age 22 and above
- A half week’s pay for every year the employee worked before reaching the age of 22.
Note: You may forfeit the redundancy payments if you refuse an alternative position offered to you by your employer without a reasonable excuse.
Redundancies are very simple issues that can be made complex due to man’s nature. If you feel you were unfairly dismissed or selected for dismissal based on unfair reasons like sex or race, or that your services are still required but you are being let off, then you may decide to take the matter up. You can always seek the services of redundancy solicitors Leeds – ESL who will advise and guide you on what to do and how to reclaim what you lost.