Employment Law & HR FAQs

Employees who have at least two years' continuous service and have been made redundant, laid off or kept on short-time working may be eligible for a redundancy payment. This includes statutory and contractual redundancy payments, notice pay and any outstanding wages and holiday pay.

Redundancy payments will differ based on age, years of service and salary. Although, you may be entitled to more than statutory redundancy pay, if provided for in your contract.

Redundancy can occur under three circumstances: business closure; workplace closure; and diminished requirements of the business for employees to do work of a particular kind.

The maximum statutory redundancy payment figure changes every year in April. Please check www.gov.uk for the correct current amount.

You'll need to know your weekly pay (before tax and other deductions) to use the calculator. The calculation used for calculating redundancy pay is: 0.5 week’s pay (subject to the statutory cap) for each year of continuous employment with the same employer whilst under the age of 22, 1 week’s pay (subject to the statutory cap) for each year of continuous employment with the same employer between the ages of 22 to 40, and 1.5 week’s pay (subject to the statutory cap) for each year of continuous employment with the same employer aged 41 and over. This is capped at 60 years of age and 20 years' service. There is a redundancy pay calculator on the Government website.

It can be challenged during the redundancy process and/ or at appeal and when challenged, should be responded to by the employer. However, if an employer has genuinely, fairly and objectively selected a pool of employees for the purpose of redundancy (which may include a pool of one), then it may be difficult for an employee to successfully challenge a redundancy pool.

Generally, people carrying out the same or similar roles should be included within the selection pool.

A redundancy payment claim must be made within six-months of the date of dismissal, unless within those 6 months:

1. payment is agreed and paid by the employer;
2. the employee makes a written claim for payment to the employer;
3. the employee's right to a redundancy payment (or the amount of the redundancy payment to which they are entitled) is referred to an employment tribunal; or
4. the employee presents a claim of unfair dismissal to an employment tribunal.

See ‘what is considered redundancy’ above.

Yes, it is possible that employees can be made redundant while pregnant or on maternity leave. However, these cannot be the reason for the redundancy as this would automatically count as a potential reason for unfair dismissal, and sex and/or maternity discrimination. There are strict rules in place to ensure that the redundancy process does not discriminate against employees who are pregnant or on maternity leave.

You can seek advice from an employment lawyer, a Trade Union, the Citizens Advice Bureau, or a law clinic, or ACAS to better understand your rights.

Redundancy is classed as collective redundancy when an employer seeks to make 20 or more employees redundant within a 90-day period, at a single establishment.

Yes, an employer can, in some situations, make permanent staff redundant if it is necessary and for a genuine reason. By retaining agency staff, it does raise the question as to whether the redundancies were necessary and genuine and so they should not be retained long-term.

Statutory redundancy pay is calculated based on length of service, age and weekly pay (all subject to a cap). The right to make a payment in lieu of notice (PILON) will be set out in the employment contract and will not impact the way in which statutory redundancy payment is calculated. PILON will be paid on the pay date closest to (and usually following) your termination date, rather than at the end of what your notice period would be if worked. The termination date is relevant to calculate your statutory redundancy payment, as your age and length of service at the date of termination are taken into account.

An employer cannot change your job role unilaterally without your consent, unless the changes are within the reasonable parameters of your job description. During a redundancy situation, an employer may look to restructure your role and should offer suitable alternative roles where possible, as an alternative to redundancy.

A restructure may create or free up roles, which could be on less, the same or on more favourable terms to the at-risk employee. If the process of restructuring is going to result in redundancies, then an employer is required to offer alternative suitable roles to avoid redundancy wherever possible. An employee may wish to take an alternative role on less favourable terms to avoid redundancy. Outside of a redundancy situation, if an employer unilaterally demotes an employee, without a contractual right to do so, this could be a breach of the employment contract and the employee could reject this demotion, resign and may be able to claim constructive dismissal.

Bumping can be acceptable as long in certain situations.

When an organisation is changing the way in which it runs, this can lead to a restructure of jobs. A job restructure may mean that a role has changed, for e.g. it may be necessary to carry out additional or even fewer duties. Alternatively, a restructure may refer to a change in the scope and/or structure of a whole organisation or department, or a part of either.

If you have been selected for redundancy, it may be due to one of the following reasons: business closure, workplace closure or diminished requirement (your role may no longer be necessary and ceases to exist).

See ‘Can you still be made redundant if you are pregnant or on maternity leave‘ above.

The length of consultation is specific to the situation and circumstances at the time; however consultation should be held for an objectively reasonable period of time.