Redundancy

Definition

An employee is redundant if his dismissal is wholly or mainly attributable to the fact that:

• the employer has ceased, or intends to cease, business for the purposes for which the employee has been employed
• the employer has ceased, or intends to cease to carry on the business in the place where the employee was employed, or
• the requirements of that business for employees to carry out work of a particular kind, or for them to carry out the work in the place where they were so employed, have ceased or diminished.

Note that the work may have ceased altogether or only in the place where the employee was employed.

Redundancy consultation process

If you fail to consult employees - and their representatives if applicable - in a redundancy situation, the redundancy dismissals will almost certainly be unfair.

If you plan to make 20 or more employees redundant in one place of work within a 90-day period, known as a collective redundancy situation, you must:

• Notify the Department for Business, Innovation & Skills, and
• Consult with workplace representatives.

Consultation must start in good time, when redundancy proposals are in their formative stage, and at least:

• 30 days before the first redundancy where there are 20 to 99 proposed redundancies
• 90 days in advance where there are 100 or more proposed redundancies.

Redundancy pay

Redundancy pay is calculated in the same way as the basic award for unfair dismissal.

However, an employee is not entitled to redundancy pay if they unreasonably refuse an offer of fresh employment (made before the old contract expires) to start within four weeks on the same or suitable terms. The employee must be allowed at least a four-week trial period in the new job.

Whether the alternative employment offered is suitable, or the offer was unreasonably refused, are both questions of fact to be determined by reference to such matters as the employee's skill and working conditions, the requirements of his family, change in earnings, age, health, sex, etc. Any dispute arising in this respect is for the tribunal to determine and the onus of proof is on the employer.

Rating :	Ratings & Comments  (Click the stars to rate the page)

Tags:	redundnacy