What are your rights if you are made redundant?

What is redundancy?

When a business needs to reduce its workforce, it ends jobs and the people undertaking that work are made redundant. If made redundant you have rights written into law. 

Who can be selected for redundancy?

You must have been chosen fairly. Among the reasons that are not considered a fair basis for selection: 

• Your age or gender;

• You are pregnant;

• You have been a whistle-blower;

• You are a member of a trade union; and/or

• You have asked for holiday or maternity leave.

Employers may make selections based on length of service (e.g. last in, first out) or disciplinary records. Some companies may ask for volunteers and offer a redundancy payment. However, it is up to the employer whether they actually select those volunteers for redundancy. 

I'm furloughed. Can I be made redundant?

You can be made redundant while on furlough, but the same rules of fairness apply. Some people will have redundancy rights in their contract which may be more generous than the legal minimum.

Can my employer make me redundant on the spot?

No. The amount of notice you are given will depend on how long you have been employed: 

One week's notice for each year if employed between two and twelve years; and

• At least one week's notice if you have been employed between one month and two years;

• One week's notice for each year if employed between two and twelve years; and 

• Twelve weeks' notice if employed for twelve years or more.

You are entitled to a consultation with your employer if you are being made redundant. Even if a company is insolvent and is shutting down, there is still a consultation process.

What redundancy pay am I entitled to?

If you have worked continuously for your employer for two years or more, you have the legal right to redundancy pay. There is a statutory minimum.

The amount is calculated from your age, length of continuous service, and current salary. You will get at least: 

• Half a week's pay for each full year worked when you're under 22;

• A week's pay for each full year worked when you're between 22 and 41; and

• One and a half week's pay for each full year worked when you're 41 or older.

If you still have holiday owed when you leave, you are entitled to be paid for that too.

When a business has gone bankrupt, then redundancy pay may be provided by the government.

Contact Fortitude Chambers to discuss this or any other legal issue with our barristers.