Employment
Unfair Redundancy: How to Tell If the Process Was Followed Correctly
Being made redundant is legal — but only when the correct procedure is followed. Many redundancies are challenged and won. Here's what employers are legally required to do.
A genuine redundancy situation exists when a role is no longer needed, the business is closing, or the workplace is closing or moving. If your employer has simply decided they do not want you anymore and used redundancy as a convenient excuse, that is not a genuine redundancy and you may have a claim for unfair dismissal.
Even where the redundancy itself is genuine, your employer must still follow a fair process. They must give you proper warning and consult with you before any decision is made. They must consider alternative roles within the business and offer them to you if they exist. They must use a fair selection process if they are choosing between employees, and that process cannot be based on protected characteristics like age, disability, or the fact that you are pregnant or on maternity leave.
You are entitled to statutory redundancy pay if you have worked for your employer for two or more years. The amount depends on your age, your weekly pay, and how long you have worked there. Some employers offer enhanced redundancy pay on top of this, and your contract may set out what you are entitled to.
If you are asked to sign a settlement agreement as part of your redundancy, do not sign anything until you have had it properly reviewed. Settlement agreements are legally binding and once signed you give up your right to bring most claims against your employer. We regularly help people understand what they are being asked to sign and whether the offer being made is fair given their circumstances.
If you believe your redundancy was not handled correctly, you have three months minus one day from your last day of employment to bring a claim to the Employment Tribunal. Acting quickly is important.