Is my Redundancy Lawful?

The world continues to battle with the coronavirus pandemic and lock-down in the United Kingdom slowly begins to ease with the pending conclusion of the Coronavirus Job Retention Scheme in October 2020. It is apparent that companies across the UK will be re-evaluating their organisational structure to ensure that they are able to perform well in this new economic climate; thus, engaging with employees regarding their future employment with the company via a redundancy process.

In British employment law, companies are required to complete a minimum of three consultations with all affected employees to discuss the possibility of their roles no longer being required with detailed and conscientious reasons.

Following the announcement of potential redundancies and please note the word ‘potential’ as no definitive decisions regarding redundancies can be made without completing the consultation process first. Throughout the consultation process you are eligible to be accompanied by a fellow colleague or trade union representative.

To give you further clarity on what each consultation meeting will comprise of in simple terms, please see below:

First consultation: Reiterate what the business reasons are that affects the future of your employment. The manager or HR representative must allow you to put forward questions or queries during this meeting. At this point, they should highlight any alternative job roles available and give you the opportunity to apply. However, in today’s climate the offer of an alternative role may be few and far between, nonetheless you should be made aware of it and given the opportunity to apply. 

Second consultation: Remind you of the reasons why your job may be at risk and discuss redundancy payment, notice period and holiday payments. (please check the website to calculate your statutory redundancy payments). Whether you have been furloughed or not, your redundancy payment will be based on your contracted salary and not on any furloughed payments received.

 Again, if you have any questions from the previous consultation then this is the perfect opportunity and environment to raise them.

If you are being made redundant, your employer will have to give you the required notice period before your last day of employment, which is determined by your length of service. However, with less than 2 years’ service, redundancy payment and notice period would not be required by law.  If the final employment date does not allow for the correct notice period to be given, then it will be necessary to pay this notice period in your final salary payment. 

Third consultation: At this stage you would know if you have been chosen to be made redundant, therefore this meeting will be to clarify this and formally give you notice of termination due to reasons of redundancy.

It is understandably a worrying and confusing time for everyone who has to go through such a process, however you are not alone and at You1st HR we can support you through each stage to ensure your company is being fair, ethically and lawful. 

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