Redundancy Entitlement - What are legitimate reasons for redundancy

Redundancy is a form of dismissal. All employers must follow employment regulations if they want to make anyone redundant from their businesses. If they do not, you could have a good case for unfair dismissal. If your case came before an employment tribunal, you could be reinstated in your job and/or receive a payment of compensation. And, even if redundancy is carried out properly, your employer must be sure to pay the correct redundancy entitlement when it is due.

There are a number of legitimate reasons you could be made redundant from your job. If the business you are working for is going to close, you will be legitimately made redundant. However, your employer must follow strict procedures to ensure your redundancy complies with all the current employment legislation.

You could also be made redundant because new technology has been implemented by your business. Or your employer may simply want to reduce the number of people on his or her payroll. And if 20 or more people are made redundant together, this is called ‘collective redundancy’ and can only take place once your employer has consulted with your union representatives.
In all cases your employer must ensure they have a legal reason to make you redundant. They simply can’t make you redundant without giving reasons and also supporting you to find a new job. If you feel your redundancy is not legal, you should initially approach your employer with your concerns. They must take your grievance seriously. You can also use mediation service such as ACAS (Advisory, Conciliation and Arbitration Service) to help you resolve the issues surrounding your redundancy.

Correct redundancy entitlement

Consultation with either you as an individual or as part of a group – if your employer wants to use collective redundancy – must take place or else your employer is in breach of employment regulations. If you or your colleagues you are going to be made redundant and are in any doubt about your employment rights and redundancy entitlement, the advice of an employment solicitor will help you clarify whether the basis for your redundancy is legitimate or not and whether you are being paid the correct redundancy entitlement.