Redundancy is the term used when an employer terminates an employment due to the fact that the work that is carried out has ceased or diminished, or is likely to cease or diminish in the future. If you have worked for your employer continuously for a period of two years, then you will be entitled to a redundancy payment.
An eligible employee, dismissed by reason of redundancy will be entitled, at a minimum, to a statutory redundancy payment from his employer. The contract of employment may provide for a more generous payment. Where an employee is dismissed by reason of redundancy, it may also give rise to a potential wrongful dismissal and / or unfair dismissal claim.
The right to claim a redundancy payment is a separate right which will arise irrespective of whether the dismissal is unfair or wrongful. Where an employer is proposing to dismiss an employee as redundant, they must consult with their employee in good time and look at all alternatives to redundancy, such as providing them with a different job or possibly a reduction in salary. Although it is not a specific requirement that The ACAS Code of Practice is followed, the employee should be allowed to make representations in the consultation process. An opportunity to appeal is normally considered to be part of a fair process.
The employer needs to ensure that the consultation period has ended before giving notice of dismissal to those employees who are dismissed by reason of redundancy. Failure to consult with individual employees about proposed redundancies can render the dismissal unfair. As well as a requirement to follow the correct procedure, employers must also pay the statutory redundancy payment calculated with reference to age, length of service and weekly earnings up to a capped amount.
We will assist with checking your eligibility on your right to redundancy payment and whether your employer has failed to follow the correct procedures. We can also help with calculating the amount of redundancy payment.
Should your employer fail to pay or make the correct payment, we can assist with an Application for a claim at the Employment Tribunal.
Your employer will be provided with a copy and will have 28 days to respond. Your matter will then be listed for a hearing at the Employment Tribunal.
At Chris Alexander Solicitors, our services for redundancy claims include the following:
- Taking your initial instructions, perusing your documents and advising you on the merits and likely compensation
- Negotiation / pre-claim conciliation through ACAS to explore whether a settlement can be reached
- Preparing claim form ET1 and Grounds of Claim setting out your case
- Reviewing and advising on the claim or the response from the other party
- Exploring settlement and negotiating settlement throughout the process
- Preparing or considering a Schedule of Loss
- Preparing for (and attending) Case Management Hearing
- Exchanging List of Documents and copies with the other party
- Taking witness statements and drafting statements
- Preparing the bundle of documents for the Final Hearing
- Reviewing and advising on the other party’s witness statements
- Preparation and attendance at Final Hearing, including preparing instructions to the barrister
The time frame from taking your initial instructions to the final resolution of your matter depends largely on the stage at which your case is resolved. If a settlement is reached during pre-claim conciliation/negotiation, your case is likely to take 3-6 weeks. If your claim proceeds to a Final Hearing, your case is likely to take 9-12 months.
This time frame is an estimate and may change should any unforeseen complexities arise. We will always inform and provide you with a revised estimate.
Should you be successful in your claim, you will be entitled to redundancy payment. You do not have to accept your employer’s initial offer of redundancy. If you have been offered a redundancy package we can advise you about your options.