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Overview of Your Employer's Obligations

By: Paul Geraghty - Updated: 27 Jul 2018 | 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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N/A - Your Question:
I was advised ( with 2 others ) on Friday the 13th, 2 days before my 60th birthday, that my role was " at risk " of being made redundant and am nearing the end of a 30 day Consultation period. My employer advised that my role may be made redundant and an entirely new role , with a new reporting line and a new grade is being established. However, on seeing the job description of the ' new ' role , it is clearly predominantly made up of the functions I currently do together with maybe a another 30% of function. I advised my employer that the ' new ' role was at least 60% of my current role and that the reporting line would be exactly the same as it is now, which my line manager confirmed. I also highlighted that what they were doing was maybe even illegal.I have also suggested a Compromise Agreement ( after looking on-line ) but this has been rejected. I intend to go to an employment tribunal. Do you think I have a case ?

Our Response:
I think you should certainly give Acas a call to find out.
RedundancyExpert - 27-Jul-18 @ 2:49 PM
I was advised ( with 2 others ) on Friday the 13th, 2 days before my 60th birthday, that my role was " at risk " of being made redundant and am nearing the end of a 30 day Consultation period . My employer advised that my role may be made redundant and an entirely new role , with a new reporting line and a new grade is being established. However, on seeing the job description of the ' new ' role , it is clearly predominantly made up of the functions I currently do together with maybe a another 30% of function.I advised my employer that the ' new ' role was at least 60% of my current role and that the reporting line would be exactly the same as it is now, which my line manager confirmed. I also highlighted that what they were doing was maybe even illegal. I have also suggested a Compromise Agreement ( after looking on-line ) but this has been rejected. I intend to go to an employment tribunal. Do you think I have a case ? .
N/A - 27-Jul-18 @ 12:36 PM
@Am - if your father left the company, then his redundancy would start again from the beginning. You father would only be entitled to statutory redundancy pay if he's been with his employer for two years or more. He would get one and half week’s pay for each full year (as he is over the age of 41). The government will give him statutory redundancy if the company goes into liquidation.
SaraB - 19-Jul-18 @ 1:59 PM
Hi, On behalf of my father. He has worked for his current company for over 30 years, in which over the years they have declared bankruptcy a few times and reformed under different company names over the years (bad i know). He temporarily left that job just over 2 years ago, after a period where wages weren’t being paid and worked just down the road doing the same job but with another company for 2-3 months. However, the company he worked at for 30 years wanted him back and he went back to work for them, to this day. Now, they are again in times of real uncertainty and we are unsure how statutory redundancy will work if the decide to go under. Firstly, in terms of the company becoming bankrupt and essentially creating a new company over the years. And secondly, after temporarily leaving will this ‘reset’ the statutory redundancy? Many thanks for your help :)
Am - 17-Jul-18 @ 5:27 PM
Kb - Your Question:
Being made redundant from a large firm, although on thecsite I work at possibly less than 20. We have had fery little information passed on. When asked our manager doing one to ones, about certain things, was just told union not agreed to that. So we have had no job centre plus on site, no pension advice, we do not know what holiday pay,lieu day, or 3ven when they are paying redundancy payment. All when we get our p45. Further more, other positions where available but not offered, not sure if this is because I am going of for a operation, and can't work for between 4 and 6 weeks. Also one chap whated voluntary redundancy, but was told no. Please advise

Our Response:
Your employer has to follow a fair redundancy process if you’ll have worked for them for at least two years by the time your job ends. Please see the link here , which will explain more.
RedundancyExpert - 6-Jul-18 @ 2:32 PM
Being made redundant from a large firm, although on thecsite i work at possibly less than 20. We have had fery little information passed on. When asked our manager doing one to ones, about certain things, was just told union not agreed to that. So we have had no job centre plus on site, no pension advice, we do not know what holiday pay,lieu day, or 3ven when they are paying redundancy payment. All when we get our p45. Furthermore, other positions where available but not offered, not sure if this is because i am going of for a operation,and can't work for between 4 and 6 weeks. Also one chap whated voluntary redundancy,but was told no. Please advise
Kb - 4-Jul-18 @ 9:51 PM
maxwell1955 - Your Question:
Hi,Im a deputy manager for a care home and was asked to help out on a secondment back in December 2017 on my return in May 2018 I was verbally told my job ceased to exist due to funding of the home, I am currently at my original place of work , I received an email asking me to meet my operations manager and regional manager to discuss next steps, when being discussed I was given 2 options, 1. demotion ( senior support)with a pay freeze for 12 months to another home, 2. redundancy, I have until 22/06/2018 to decide what I want to do, I emailed my operations manager asking for written confirmation of my post no longer being available, and details of the demoted post, along with the redundancy package to enable me to make an informed decision, I just received a call saying they cant give me anything as a redundancy package has not been drawn up they want me to start the new position on Monday and to still make a decision tomorrow being Friday. I have no information to make the decision. im stressing out quite bad now as to what I can do.

Our Response:
In this case, you may wish to ring Acas, as it doesn't sound as though your employer is conducting a fair and objective process.
RedundancyExpert - 22-Jun-18 @ 11:23 AM
Hi, Im a deputy manager for a care home and was asked to help out on a secondment back in December 2017 on my return in May 2018 I was verbally told my job ceased to exist due to funding of the home, I am currently at my original place of work , I received an email asking me to meet my operations manager and regional manager to discuss next steps, when being discussed I was given 2 options, 1. demotion ( senior support)with a pay freeze for 12 monthsto another home, 2. redundancy, I have until 22/06/2018 to decide what I want to do, I emailed my operations manager asking for written confirmation of my post no longer being available, and details of the demoted post, along with the redundancy package to enable me to make an informed decision, I just received a call saying they cant give me anything as a redundancy package has not been drawn up they want me to start the new position on Monday and to still make a decision tomorrow being Friday. I have no information to make the decision. im stressing out quite bad now as to what I can do ..
maxwell1955 - 21-Jun-18 @ 3:02 PM
Stevie - Your Question:
I am currently in my ‘4 week trial’ period after the prospect of redundancy. I have decided the new job is a lot different and want to finish and take the redundancy offer. How much notice should I give in the 4 week trial period? Also everyone got 8 weeks pilon payment, would I still be eligible? They are telling me I will not get pilon and I have to give 12 weeks notice. Tia

Our Response:
The CAB link here , should help answer your question.
RedundancyExpert - 15-Jun-18 @ 3:05 PM
I am currently in my ‘4 week trial’ period after the prospect of redundancy. I have decided the new job is a lot different and want to finish and take the redundancy offer. How much notice should I give in the 4 week trial period? Also everyone got 8 weeks pilon payment, would I still be eligible? They are telling me I will not get pilon and I have to give 12 weeks notice. Tia
Stevie - 14-Jun-18 @ 11:11 PM
PaulRoney - Your Question:
Hi,We have just been given notice of redundancy and been told we will only receive statutory redundancy payment. We have a non contractual policy of enhanced payments to 4 weeks per year which the wider group has always paid over the past 20 years.I am employed by a separate ltd company within the group with the same non contractual enhanced payment. But we have been sold to another group. We still have the non contractual enhansed payment as part of our policiesm but my employers is saying that they don't have to pay the enhanced payment.Surely as they have paid it to everyone previously, it has now become an implied right.My company say not and now I don't know what to do, I have worked there for over 20 years expecting that I would receive the enhanced payment if.Any advice?

Our Response:
This would really be a question that is best being talked through with Acas directly.
RedundancyExpert - 13-Apr-18 @ 10:06 AM
Hi, We have just been given notice of redundancy and been told we will only receive statutory redundancy payment. We have a non contractual policy of enhanced payments to 4 weeks per year which the wider group has always paid over the past 20 years. I am employed by a separate ltd company within the group with the same non contractual enhanced payment. But we have been sold to another group. We still have the non contractual enhansed payment as part of our policiesm but my employers is saying that they don't have to pay the enhanced payment. Surely as they have paid it to everyone previously, it has now become an implied right. My company say not and now I don't know what to do, I have worked there for over 20 years expecting that I would receive the enhanced payment if. Any advice?
PaulRoney - 12-Apr-18 @ 11:12 AM
We run a small charity with 3 part time workers. They have been with us for over 5 years but every year we renew their contract depending on the grants we receive.Circumstances mean that the charity will cease operating in Sept at the end of the employees contracts. Are they entitled to redundancy payments?
Charles - 13-Mar-18 @ 4:17 PM
woolleylegs - Your Question:
Hi I have been told on the 6th November that I am being made Redundant, I have still not been given any letter and nothing has been said to me as well, are there rules that say that they can leave me hanging around

Our Response:
You can see more via the gov.uk link here , which should help answer your question.
RedundancyExpert - 4-Jan-18 @ 10:17 AM
hi i have been told on the 6th November that i am being made Redundant, i have still not been given any letter and nothing has been said to me as well, are there rules that say that they can leave me hanging around
woolleylegs - 3-Jan-18 @ 3:56 PM
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
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