Redundancy Rights: A Comprehensive Guide for Employees

3 mins to read

Coronavirus has had a devastating impact on businesses across the country. Job losses are as damaging as they are inevitable. So, how does the pandemic affect your redundancy rights?

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Understanding Standard Redundancy Rights

In today’s employment landscape, it’s important to understand your redundancy rights, whether redundancy is linked to ongoing economic change, the aftermath of COVID-19, or other business reasons.

Employers are legally required to follow a fair and transparent process when making redundancies. If they fail to do so, or if there is no proper redundancy procedure in place, you may be entitled to bring a claim. For more information, read our guide, Can I make a redundancy claim?.

Although redundancy procedures can vary from one employer to another, there are some general standards that should usually be met:

  • Consultation: Employers should meet with you to discuss the redundancy situation.
  • Explanation of reasons: Your employer should clearly explain why redundancies are necessary and outline the expected timeline.
  • Alternative roles: If a suitable alternative role exists within the business, it should be offered to you.
  • Appeal process: You should be told how to appeal the redundancy decision.

You should use these meetings to raise any concerns you have about the fairness of the decision or the process being followed.

Find out more in our guide, ‘Can I make a redundancy claim?’

Impact of COVID-19 on Redundancy

The COVID-19 pandemic changed how many employers handled redundancy. For example, consultation meetings may have been carried out online rather than in person. If COVID-19 caused a business to change direction, move to remote working, or close parts of its operations, these may have been legitimate grounds for redundancy.

The criteria used to select employees for redundancy may also have changed during this period. If you are unsure whether your selection was fair, it may be worth speaking to an employment solicitor.

Redundancy Pay for Furloughed Employees

Furloughed employees with at least two years’ continuous service are still entitled to statutory redundancy pay. This should be calculated using normal wages, not the reduced furlough rate. The same principle may also apply to notice pay, holiday pay, and other sums owed, although the exact position can depend on your circumstances.

During the redundancy process, your employer may offer you a settlement agreement that includes notice pay. Before accepting any agreement, it is wise to get legal advice, especially if you believe you are being offered less than you should receive.

Explore your options in ‘Life after redundancy: making life easier’

Addressing Unfair Redundancy

If you believe your redundancy was unfair, the first step is usually to appeal the decision using the process set out in your company handbook. You should provide any evidence you have that the selection process was flawed or that discrimination may have played a part.

If the issue is not resolved internally, getting legal advice can help you understand your options. An employment solicitor can advise you on making a claim in an employment tribunal or recovering any pay you are owed.

The Law Superstore’s quick quote form lets you compare and connect with solicitors who can help you make a redundancy claim.