Constructive dismissal? Please visit Job Justice Employment solicitors.
Redundancy Entitlement - Redundancy Rules
An important consideration in redundancy, whether individual or collective, is your redundancy entitlement. You will need to have your redundancy entitlement assessed individually, as it varies depending on your age, years of service, etc. An employment solicitor can help calculate your redundancy entitlement.
Your colleagues also have the right under collective redundancy rules to take time off to look for another job. You must still maintain your existing employment obligations and meet all the terms and conditions stated in your employment contract, but your employer can’t prevent you from taking reasonable time off before your official redundancy date.
If an employer wants to make 20 or more employees redundant in a period of 90 days, this is called collective redundancy. This type of redundancy tends to happen when a business is going to close, making all its employees redundant, or a business is embarking on a major restructuring exercise that will ultimately mean a smaller workforce.
The rules regarding collective redundancy state that your employer must consult with all the people they want to make redundant and their official representatives. If you have a trade union that is recognised by your employer, your union representative will usually handle all of the negotiations on behalf of the group that is being made redundant.
When no trade union exists or is recognised by your employer, you can elect a representative that will speak for your group. In larger organisations it is often useful to set up a committee that will handle all employee related matters including any proposed redundancies. Note that if your employer does not consult you about the collective redundancies they are planning, this breaks employment law and could mean a protective award of up to 90 days pay could be awarded by an employment tribunal. This can mean you would receive far more than your usual redundancy entitlement.
Some companies actively encourage their employees to formally elect a representative that would be used in the event of a collective redundancy occurring. The representative is required under the Consultation of Employees Regulations 2004. If you or your colleagues do not have a representative and your employer has not moved to put a representative place, you should make your employer aware of this. If they fail to act, the advice of an employment law solicitor is vital to ensure your rights are protected as you move through the collective redundancy process.
Find More about: