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Overview of Your Employer's Obligations

By: Paul Geraghty - Updated: 23 Oct 2017 | comments*Discuss
 
Overview Of Your Employer's Obligations

The redundancy process is extremely tightly regulated. There are strict rules on how your employer should conduct the redundancy process at every stage. Violation of those rules can lead to legal action and compensation being awarded to the aggrieved employees.

Redundancy Selection and Consultation

If the redundancy involves more than 20 people, it is called a collective redundancy. Special conditions apply to collective redundancies. The employer must notify the government and must consult with employees or their representatives for specified lengths of time before the redundancies actually take place. These are 30 days if the redundancy affects between 20 and 99 workers in total and 90 days if the redundancy affects more than that.

Your employer is required to consult you about the upcoming redundancy. This means there should, at a minimum, be a private meeting in which the organisation’s managers speak to you individually. There may also be collective consultation.

If you are being made redundant, the employer is required to explain to you why the redundancy is occurring, and what the selection criteria were (if not all employees are being made redundant). These selection criteria must be objectively-based. That means they must be grounded in something concrete and measurable. It is not an acceptable practice for an employer to just pick out his least favourite employees for redundancy.

There should also be some form of appeal procedure for those who believe they have been wrongly selected for redundancy.

Alternatives to Redundancy

The employer is required to consider alternatives to redundancy, such as offering you comparable work elsewhere within the organisation, including within other affiliated companies if the company is part of a corporate group. When you accept an alternative job offer from your employer, you are entitled to a trial period of at least four weeks to help you decide if the new job is suitable. If you leave during this period, you are retain your rights to Statutory Redundancy Pay.

If you or your representatives suggest alternatives to redundancy yourselves, the employer is required to consider them.

Redundancy Payments

The employer is obligated to provide a lump sum payment to anyone with more than 2 years of continuous service. A minimum of how much this payment should be is prescribed by law and is based on the length of service, age and weekly pay of anyone affected by the redundancy. This minimum amount is called Statutory Redundancy Pay (SRP). It is possible that the employer, through the contract of employment, is obligated to provide more generous treatment than this. This is called non-statutory redundancy pay.

All employees being made redundant should be provided with a written statement explaining how much redundancy pay they are entitled to and how this was worked out.

Notice Period

The employer is required to provide a period of notice to all employees affected by the redundancy or pay in lieu of notice (PILON). This notice period should be one week for each year of continuous service with the company or organisation. If the employee has been with the organisation for more than one month but not yet a full year, he or she is still entitled to at least one week’s notice. This amount of notice is the statutory minimum. It is possible that your contract of employment provides for a longer notice period.

During the notice period, the employer is required to provide the employees who are due to be made redundant with “reasonable” time off at full pay to look for other work or to retrain.

If you leave to take a new job during the notice period, you may lose your right to Statutory Redundancy Pay.

Employer Obligations During Redundancy – Conclusion

The complexities of the law relating to redundancy can be confusing for all concerned. As violations of proper procedure can be punished with financial penalties, however, it is certainly worth researching the employer’s obligations in detail.

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Hi My employer provided me with a letter confirming my enhanced redundancy payment however they had transposed the figures and it stated more than I was entitled too. After a couple of days they realised their error and provided me with an amended letter. I am looking to find out if by serving me the original letter they are now required to pay me that amount or are they able to reduce it to the correct figure. Many thanks Dan
Lcfcdan - 23-Oct-17 @ 12:39 PM
@Simon - Wow. That seems a been brash of your employer. It doesn't sound like this is very fair. I'd give Acas a call.
NDD - 12-Oct-17 @ 2:02 PM
I found out last month that I am to be made redundant. My last day will be Dec 15. I'm currently working my notice period. Before I leave, I've been asked to train a new graduate employee who joined us 5 months ago. The training covers just about everything she would need to know to do my job. Is this a fair request from my employer? There's nothing specific in my contract that says I am responsible for training new members of staff. I've been told that my company would like to retain my services on a freelance basis. However, if the new member of staff is fully-trained (by me) why would they then use my services. Does anyone have advice about what to do in this situation? Many thanks.
Simon - 10-Oct-17 @ 12:13 PM
Hi I have been front of house receptionist for 20!years with this firm they have now taken the phones off my duties and centralised them . I was employed in my contract as a telephonist and receptionist . They are now asking me to sit front of house but do facilities duties . Nothing has been done formally and they have also requested I empty shredded paper in the bins on a lower floor . I have refused to do this as I don't feel I'm us part of my reception roll . My head of office has told someon by me not doing this it means I have an issue with my job . What advice can anyone give me ? Can I ask for redundancy as they have taken my main role away from me ?
DeeDee43 - 3-Oct-17 @ 12:12 PM
@EsytigerIt sounds like your employer definitely wants to keep you on. Hopefully, if your job is made redundant they will offer you another job. Also, just because you have a redundancy letter it doesn't mean you will definitely be made redundant. Your employer is obviously just be going through the 'correct' procedure.
Willow - 7-Jul-17 @ 3:50 PM
Hi can someone help , got promotion,on 6 months probation, told I had the job 6th June 17 had Confirmation letter 14th June 17 and now on 19th June 17 told they are restructuring the department and I could be made redundant which if I was a betting lady I would say I will definitely be made redundant.
Easytiger - 24-Jun-17 @ 10:55 PM
Following a period of sick leave I attended a return to work interview to be told there and then by my employer that my position was at risk of redundancy and that they would be following the ACAS procedure.I was not notified in writing before the meeting and not given the opportunity to be accompanied.Although financial reasons were quoted, I was the only person within the company to be at risk of redundancy.My question is are they at fault for not notifying of the impending redundancy in writing before the meeting, failing to allow me to be accompanied and not setting out the criteria used for selection? Any advice would be most useful
ReadingNeil - 20-Jun-17 @ 9:27 PM
Hi My role was made redundant recently and as part of the role I delivered specialist services, I've recently found out that the company are using a freelance contractor to deliver these services now. What can I do?
Mase - 7-Jun-17 @ 8:54 PM
Hi, having accepted voluntary redundancy with a 12 weeks written notice I pointed out to my company that only 9 weeks remain until my leaving date when I received the written notice, they queried this but conceded I was right and now offer the extra four weeks as PILON. My question is,the letter being on headed note paper was not signed and without a name of a person to contact, does this notice of redundancy have to be signed to be a formal/ legal document. Thank you
Frank - 23-May-17 @ 4:07 PM
Rich - Your Question:
Hi, I have finally, during a protracted and questionable redundancy process following a merger, received a confirmation letter that my job is no longer at risk and is in fact redundant. However, my employer refuses to give a fixed date for leaving, dependent on other projects being delivered which I have no impact on and do not affect my actual position.I have now been immediately redeployed to my previous position (over 2 years prior) with every question I put regarding suitability, role, objectives, targets etc dismissed and unanswered. I was in fact told simply "you're doing it". Tied to this, I have then been informed that this will affect my proposed leaving date and push it back further. Where do I stand as regards process? - At what point are they required to give me a fixed date? and if I'm moved from my current role then surely this is redundant now and I have grounds for immediate redundancy?

Our Response:
You can see more via the CAB link here, which should answer your question.
RedundancyExpert - 27-Apr-17 @ 10:07 AM
Me - Your Question:
My husband has been told by his boss yesterday that the company he works for (private ambulance company) may have to fold as they have not got any work my husband has work for this company for 17 years will he be able to go for redundancy money as he will be 75 yrs old in June it would be hard to find a job Regaurds me

Our Response:
Your husband should be eligible for redundancy. If the company goes into administration he may be able to claim statutory redundancy, please see link here .
RedundancyExpert - 26-Apr-17 @ 3:00 PM
My husband has been told by his boss yesterday that the company he works for (private ambulance company) may have to fold as they have not got any work my husband has work for this company for 17 years will he be able to go for redundancy money as he will be 75 yrs old in June it would be hard to find a job Regaurds me
Me - 26-Apr-17 @ 11:13 AM
Hi, I have finally,during a protracted and questionable redundancy process following a merger, received a confirmation letter that my job is no longer at risk and is in fact redundant. However, my employer refuses to give a fixed date for leaving, dependent on other projects being delivered which I have no impact on and do not affect my actual position. I have now been immediately redeployed to my previous position (over 2 years prior) with every question I put regarding suitability, role, objectives, targets etc dismissed and unanswered. I was in fact told simply "you're doing it". Tied to this, I have then been informed that this will affect my proposed leaving date and push it back further. Where do i stand as regards process? - At what point are they required to give me a fixed date? and if I'm moved from my current role then surely this is redundant now andI have grounds for immediate redundancy?
Rich - 26-Apr-17 @ 9:02 AM
Bob - Your Question:
Worked for 20 years with Royal Mail. Accepted quote I was given for voluntary redundancy over ten weeks ago!, every time I asked either my manager or his manager for an update I was told it's with finance team.I have never been given an official letter quoting the redundancy package I would get, never been told when my last day of service would be, In fact when I hog original quote, which was on the back of a piece of paper I was never told how much of lump sum was tax free and what happens to my pension.I went above my managers to try get further updates, but they were unhappy with this and told me that they would do everything they can to stop me getting the package!During the period of waiting, I was looking for other jobs. And was lucky to get one, would this stop me getting the package? Or do I have a case to argue? Regards

Our Response:
If you leave before you have accepted any redundancy package offered, then you would not be entitled to claim your redundancy.
RedundancyExpert - 4-Apr-17 @ 2:14 PM
Worked for 20 years with Royal Mail. Accepted quote I was given for voluntary redundancy over ten weeks ago!, every time I asked either my manager or his manager for an update I was told it's with finance team. I have never been given an official letter quoting the redundancy package I would get, never been told when my last day of service would be, In fact when I hog original quote, which was on the back of a piece of paper I was never told how much of lump sum was tax free and what happens to my pension. I went above my managers to try get further updates, but they were unhappy with this and told me that they would do everything they can to stop me getting the package! During the period of waiting, I was looking for other jobs. And was lucky to get one, would this stop me getting the package? Or do I have a case to argue? Regards
Bob - 1-Apr-17 @ 5:52 PM
I worked for a Local Authority for 32 years and following a "review" my post and a few others we put at risk. Because of the situation and my age I decided to opt for voluntary redundancy. In December I was served a redundancy notice giving me 3 months notice. However, subsequently having looked at my terms and conditions my contractural notice is 4 months. I had forgotten about this to be fair. My employer has now agreed to pay me 4 months redundancy instead of the original 3 months they told me. My question is because the original notice was served with an incorrect notice period is it valid or are they required to issue me a new notice with the correct notice period. Any guidance would be appreciated.
Old boy - 15-Mar-17 @ 10:10 AM
My employer is making some of us redundant, but is offering me some work through an agency in the same role so he no longer has to pay sick pay, holiday pay, he doesn't have to pay so much tax etc. We will therefore be doing work through an agency not directly payed by the employer any longer. Our employer says as we will still be given work through this agency the redundancy pay won't be due to us. Surely as it's no longer direct through the employer we are due statutory redundancy pay?
Xsarars - 18-Feb-17 @ 11:53 PM
I am at the start of a redundancy consultation period ending 24th March 2017, with a redundancy date of 31/3/2017. I have been employed since 22/4/2004 and am entitled to 12 weeks notice. Will my redundancy pay be calculated as of 31/3 or the end of my notice period (approx 16/6/17)? My company has in the contract that it reserves the right to PILON does this mean all PILON will be subject to PAYE and NI?
Suziq - 9-Feb-17 @ 12:07 PM
I have been self employed, to the same firm, for three years and paye for 13 months, same firm. Therefore am I entitled to redundancy? The company are saying that as I'm not so able bodied as my colleague, I must go. Is this fair and where do I stand please help. Thank you. Annette hunter
Annette - 16-Nov-16 @ 6:18 PM
Parko - Your Question:
After reading this I wondered if I have a case. Back in November I was made redundant after nearly 3 years service. I was included in the consultation period along with another 150+ employees. This consultation period was for 45 days only and not the 90 days mentioned here. Furthermore approximately half of the employees were members of a union and have recently been awarded a further payment to cover the 45 day shortfall which the union fought for as they said the original 45 day consultation was wrong. However the employer has stated that this extra payment only applies to union members at the time and not non members. Surely this is discriminatory against us non members. Can anyone advise?

Our Response:
While your company may have worked outside the legal remit, you may have to take the matter up against your former employer yourself. I suggest you give ACAS a call regarding this.
RedundancyExpert - 9-Nov-16 @ 2:32 PM
After reading this I wondered if I have a case. Back in November I was made redundant after nearly 3 years service. I was included in the consultation period along with another 150+ employees. This consultation period was for 45 days only and not the 90 days mentioned here. Furthermore approximately half of the employees were members of a union and have recently been awarded a further payment to cover the 45 day shortfall which the union fought for as they said the original 45 day consultation was wrong. However the employer has stated that this extra payment only applies to union members at the time and not non members. Surely this is discriminatory against us non members. Can anyone advise?
Parko - 9-Nov-16 @ 8:07 AM
i have 2 part time contracts of employment as my original employer at 1 of the cleaning services lost contract, resulting in tupe across to my other employer, i am facing a closure now at this part of the contract but the other is still valid and i have had no notice at all officially just what i found out as the branch is closing my manager has not had any conciliation period with me in respect of the contract involved is this deemed as potential unfair dismissal,the closure is in 1 weeks time at the relevant branch
part-time-contacts - 28-Oct-16 @ 6:37 PM
sandygirl - Your Question:
I have a contract for services which states I am self employed but paid through payroll with tax and Ni being deducted by employer. contract is fixed term to 2018 ( this is second contract of 3 year term) and terms state 3 months notice to terminate by either party. job is now being removed from organisation. do I have any redundancy rights?

Our Response:
If you're self-employed as independent contractor, you are unlikely to qualify as an employee and therefore you won't be entitled to statutory redundancy pay, please see CAB link here.
RedundancyExpert - 20-Oct-16 @ 10:25 AM
i have a contract for services which states I am self employed but paid through payroll with tax and Ni being deducted by employer. contract is fixed term to 2018( this is second contract of 3 year term) and terms state 3 months notice to terminate by either party. job is now being removed from organisation . do i have any redundancy rights?
sandygirl - 19-Oct-16 @ 10:39 AM
after 8 years with my company they are going insolvent but they have messed us about so much supposedly on the 15 of this month aug insolvency experts are actualy coming in after 8 years at 300 a week and no pay for this month although we worked how much redundancy can i expect please
jude - 7-Aug-16 @ 6:54 PM
marbles - Your Question:
I think I have been unfairly dismissed through redundancy

Our Response:
If you think this is the case then I advise you give ACAS a call, please see link here to check whether your employer is working within employment guidelines.
RedundancyExpert - 27-May-16 @ 10:36 AM
I think I have been unfairly dismissed through redundancy
marbles - 26-May-16 @ 12:31 PM
Can I be made to take Voluntary Redundancy (VR) even if there are no jobs for me in the new structure?I completed an expression of interest form which shows I was interested in VR but that was because the letter stating that I was at risk of redundancy said a meeting would be arranged to discuss my options and where I would be given my formal notice of redundancy.This meeting has never taken place so I completed a VR form just expressing my interest as felt I had no other choice.I am happy to take VR but would prefer if I was made compulsory redundant as I work for the NHS and taking VR would mean I couldn't work for any NHS body for the next 6 months!
screws01 - 3-May-16 @ 5:12 PM
Hi there; I have worked for 25 years on a seasonal basis for the same employer, on their payroll and with a Contract of Employment. The seasons are January to May and August to November, although in the last couple of years this has blurred a little as the company has been struggling, and I am always contacted with a re-engagement date when a new season starts. For many years my job has been Mailroom Supervisor but I have just been told that my duties have been transferred to a permanent member of staff and I have been offered the position of telesales / order entry. I am not comfortable with the telephone and have no relevant computer experience; I don't therefore consider this a suitable alternative. Under recent legislation am I entitled to a redundancy payment. Many thanks.
Paula - 28-Apr-16 @ 10:38 PM
Bruce - Your Question:
I have been in my job for 17 years and the firm are re-structuring and want to offer voluntary redundancies I am 68. Does redundancy money start to diminish when you are getting older

Our Response:
I have included the Age UK article on redundancy here which should tell you all you need to know.
RedundancyExpert - 27-Apr-16 @ 12:26 PM
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