Employee rights: Redundancy
Redundancy is a form of dismissal and happens when an employer needs to reduce their workforce. Your employer needs to go through a fair dismissal process and cannot make you redundant based on your age, gender, disability or because you’re pregnant.
Your employer should use a method of selection which is fair and objective, such as asking for redundancy volunteers or basing the decision on qualifications and experience. If your employer chooses you for redundancy based on a protected characteristic, then you may be able to claim for unfair dismissal. However, if your job no longer exists, then your employer does not have to go through this process.
You may be able to have the following if you’re made redundant:
- Redundancy pay (if you’ve been working with your employer for at least 2 years continuously)
- A notice period
- A consultation with your employer
- The option to move into a different role or role with an associated company
- Time off to seek new employment
Redundant due to COVID?
If you have been made redundant due to COVID-19, your employer may be able to re-employ you and have your wages paid through furlough.
If your employer is unable to keep you on because their operations have been affected due to the pandemic, they can put you on furlough. They can apply for a grant to cover your usual wage through the Job Retention scheme. The Coronavirus Job Retention scheme will remain open until 30th September 2021
The UK government first announced the furlough scheme during the first lockdown in March 2020. This allowed employers to continue paying employees although they could not work due to the pandemic. The scheme pays 80% of employees’ wages for time they cannot work.
Redundancy whilst on furlough
If your employer makes you redundant while you’re on furlough, the usual redundancy rules and laws still apply. Any redundancy pay should be based on your normal wage rather than the reduced amount while you’re on furlough.
Should you have any queries regarding the above information or if you require assistance with your corporate, employment or immigration matter, please get in touch with a legal professional at Hudson McKenzie via email at email@example.com or by telephone +44(0) 20 3318 5794.
The information provided does not amount to legal advice.