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Redundancy (FAQs)

The possibility of redundancy is never far away in today’s economic climate: we have set out below some guidance in case it becomes a reality for you.

What you should do if your employer says they need to make some employees redundant.

  • Ask your employer why they believe there is a redundancy situation and make a note of their answer. You are legally entitled to be informed and consulted.

If you have been told you are in a pool it means that your employer has made a pool of employees who are at risk of redundancy. Ask for the names of the employees in the pool and why they have been selected. You can discuss with your employer whether the pool is appropriate and whether other employees should be included in the pool.

When your employer selects which employees to make redundant they need to apply objective selection criteria to employees in the pool. These criteria can include qualifications, experience, skills, attendance and disciplinary record. The employer scores each employee in the pool against these criteria.

  • Ask your employer what the selection criteria are and what the scoring system is.

If you are told that you are at risk of redundancy, your employer should send you a letter advising you that redundancy is a possibility and setting out the reasons why. They should invite you to a consultation meeting.

At a consultation meeting you should discuss with your employer:

  • the need for redundancies
  • the selection criteria
  • the scoring system and how it applies to you
  • whether there are any opportunities for you to work in different areas of the business.

You should ask whether there are any vacancies in other departments, and your employer must provide this information. Do not delay as there are strict time limits for submitting a claim for unfair dismissal.

Some employers, to avoid the risk of an Employment Tribunal claim, offer a Settlement Agreement. The employer agrees to pay the employee their redundancy entitlement, and possibly an additional payment if the employee waives their legal rights. Most employers will pay for the employee to receive independent legal advice on the Settlement Agreement. Legal advice is essential as you are giving up your legal rights.

Redundancy – frequently asked questions

My employer says they need to make some employees redundant. What should I do?

Ask your employer why they believe there is a redundancy situation and make a note of their answer. You are legally entitled to be informed and consulted.

I have been told I am in a pool – what is it?

Your employer makes a pool of employees who are at risk of redundancy. Ask for the names of the employees in the pool and why they have been selected. You can discuss with your employer whether the pool is appropriate and whether other employees should be included in the pool.

How does my employer select which employees to make redundant?

Your employer needs to apply objective selection criteria to employees in the pool. These criteria can include qualifications, experience, skills, attendance and disciplinary record.
The employer scores each employee in the pool against these criteria. Ask your employer what the selection criteria are and what the scoring system is.

I have been told I am at risk of redundancy – what happens next?

Your employer should send you a letter advising you that redundancy is a possibility and setting out the reasons why. They should invite you to a consultation meeting.

What is discussed at a consultation meeting?

At a consultation meeting you should discuss with your employer:

  • The need for redundancies
  • The selection criteria
  • The scoring system and how it applies to you
  • Whether there are any opportunities for you to work in different areas of the business.

You should ask whether there are any vacancies in other departments, and your employer must provide this information.

I have been told I am going to be made redundant – what happens next?

Your employer’s decision should be confirmed in writing. They should provide advice about a Right of Appeal. If you are made redundant, make sure you receive your full notice pay, contractual benefits, pay for untaken holiday, and your full entitlement to contractual or statutory redundancy pay.

I do not think my dismissal was fair – what can I do?

You should immediately seek legal advice. Do not delay as there are strict time limits for submitting a claim for unfair dismissal.

My employers have offered me a Settlement Agreement. What is it?

Some employers, to avoid the risk of an Employment Tribunal claim, offer a Settlement Agreement. The employer agrees to pay the employee their redundancy entitlement, and possibly an additional payment if the employee waives their legal rights. Most employers will pay for the employee to receive independent legal advice on the Settlement Agreement. Legal advice is essential as you are giving up your legal rights.

To arrange an appointment, please contact us on 01689 822554 or FREEPHONE 0800 358 2757,
or email us at employment@thomasdunton.co.uk.

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