With any redundancy, employers need to follow a fair process and respect employment law. We have outlined below some of the main questions those facing redundancy may have:
How much notice should I get?
The statutory notice periods are:
- Employed from one month to two years: one week.
- Between two to 12 years: one week for each year.
- Over 12 years: 12 weeks
Your employer may however have to give you longer notice periods, depending upon the terms of your contract.
You are entitled to be paid throughout the notice period. If your contract says you can be paid ‘in lieu of notice’ that means they can let you go, but they still have to pay you during the notice period.
Your contract may also include a “gardening leave” clause. This means that although you are not actually working for your employer, you are legally still employed and therefore you cannot start a new job during the period of gardening leave. Other conditions may also apply.
Statutory redundancy pay
If you have been employed for two years or more with your current employer, you will be entitled to statutory redundancy pay. The calculation is based on age as follows:
- Under 22: half a week’s pay for each full year you worked
- 22 to under 41: one week’s pay for each full year you worked
- 40 and over: one and a half week’s pay for each full year you worked.
Statutory redundancy is capped at 20 years and if you were made redundant on or after 6th April 2020, your weekly pay is capped at £538 and the maximum statutory redundancy pay you can get is £16,140.
Click here to use the government calculator to calculate your redundancy pay.
It is important to check your employment contract as you may be entitled to more than the statutory minimum redundancy pay.
What happens to my holiday entitlement?
Many businesses are anxiously aware of the amount of holiday employees may have accrued during lockdown and are therefore requesting this to be taken during the notice period. Holiday is paid at your full contracted rate, not the furlough rate.
If your employer is requesting you to take holiday, they have to provide you with two day’s notice for every day of holiday they wish you to take. For example, if you are taking 7 day’s holiday, they need to give you 14 day’s notice in advance of when they want you to take the holiday.
You are also entitled to be paid in lieu for any accrued holiday that hasn’t been taken at termination. This includes any statutory holiday you were unable to take due to sickness, maternity or because of coronavirus. This should usually be paid as a lump sum in your final pay.
I was on maternity/sick leave when I was made redundant – what are my rights?
Your redundancy pay should be based on your full and normal pay even if you are earning less than your usual wage. If you feel you were unfairly dismissed, please contact our employment specialist, Lisa Aitken.
I don’t think my redundancy was fair – what can I do?
When considering redundancies, an employer should consult with employees and consider alternative roles. It is unlawful for anyone to discriminate against you at work – it is unacceptable and can be extremely emotional and frustrating. Reasons that people may feel their selection for redundancy wasn’t fair could include:
- The procedure wasn’t fair – I didn’t receive notice.
- I don’t know the grounds on which I was selected for redundancy.
- It was based on discriminatory grounds eg. age, sex, race or religion
Facing redundancy can be an emotional and complex process and it is essential that you seek expert legal advice to ensure you are aware of your rights and options at the outset.
Our employment law specialist, Lisa Aitken is available to advise you if you have been made redundant, if your employer is making changes to your contract or indeed, if you have been offered a settlement agreement.
Contact Lisa today on 07960 469988 or email: LisaA@moore-tibbits.co.uk to talk through your situation and the options available to you.