Redundancy rights

Posted by on Jan 27, 2016 in Redundancy rights | Comments Off on Redundancy rights

Redundancy rights

Redundancy_thumb300Redundancy is a job dismissal which occurs when an employer needs to reduce the workforce. It can occur for several reasons: technological development and a new system have made a job position unnecessary, the job position no longer exists, the employer needs to cut down the costs, the company is closing or moving offices etc.

Redundancy can be individual or collective. Individual redundancy occurs when the employer makes fewer than twenty employees redundant in one company’s establishment. Collective redundancy is the case when over twenty employees are made redundant by the employer within a period of ninety days. Collective redundancy usually occurs when the company closes one or several of its offices, so they do not any longer need the same number of the employees, or when reorganization and/or relocation of work occurs.Rights_1

The employer is obliged to make the decision about redundancy based on objective and professional criteria:
• The duration of the employment – those employees who have spent the shortest period of time in a company are made redundant first.
• Disciplinary records – the employees with the most breaches are the first ones to be selected for redundancy
• Staff appraisal – choosing for redundancy those employees with the least skills, qualifications or the lowest performance at work
• Volunteers – the employer can also ask if there are the employees who apply for redundancy dismissal before making the decision.

redundancy-selection-criteria-700x300The employer may use one of the above criteria or combine several of them when choosing the employees to make redundant. On the other hand, if subjective and personal criteria are used to choose the candidates for redundancy dismissal, it is considered unlawful and the employees can even take legal actions against the employer. The unlawful reasons for redundancy dismissal include discriminatory reasons (making someone redundant because of their gender, race, ethnicity etc.) and personal reasons, such as relationship with the employees. In other words, when choosing the employees to be made redundant, the employer needs to have fair and objective reasons for doing so, which will be explained to every employee, and very reason should be supported by evidence. If the redundancy is not based on fair, objective and evident reasons, it can also be considered as unfair dismissal. Every unfair dismissal allows you to take legal action, which means that you can file a claim to an industrial tribunal.

Employers are also obliged to consult with their employees before making them redundant. The consultation serves to provide the employees with ways of influencing the redundancy process, and it should include the following: speaking directly to every employee that is selected to be made redundant and explaining the reasons, searching for the possible alternatives to redundancy and if required, applying dispute resolution procedures. If the consultation does not occur, the employee may consider their redundancy to be an unfair dismissal, and can therefore decide to take legal action.

Lastly, the employees who have been made redundant are entitled to receive redundancy pay. It can be statutory redundancy pay, which is prescribed by law, but also contractual and non-contractual redundancy pay. Contractual redundancy pay is paid out when the employer is obliged to pay it out by the employment contract, whereas non-contractual redundancy pay is not conditioned by the employment contract, but the employer may choose to pay it out in order to preserve goodwill among the employees. If you have problems of this category, we strongly suggest you contacting an experienced lawyers, but make sure you check public relations for lawyers you want to contact since that is one of the primary conditions for choosing the lawyer.

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