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I am an Employee at Risk of Redundancy/Being Made Redundant: What do I Need to Know?
An employer may only make you redundant, if the employer has genuine reasons for terminating your employment.
There are a number of key guidelines that an employer must adhere to when contemplating making you redundant:
Planning
Employers are under an obligation to draw up a plan to decide which employees would be kept on or made redundant.
Consultation
Employers should note that in the event that 20 or more employees are to be made redundant, the employer has a duty to consult with your representatives, including any relevant trade unions.
The employer must show in detail a fair selection procedure.
Employers should take certain steps to ensure that the contemplated redundancy is carried out fairly. In the event that the redundancy is not carried out fairly you may potentially claim for:
A redundancy payment can either be based upon the legal minimum or based upon the terms of your employment contract.
You may bring the following claims if the redundancy is not carried out properly:
As a general rule “out of court settlements” of employment disputes are not legally binding in that they cannot exclude your right to take the matter concerned to an Employment Tribunal. However, this is legitimately circumvented by entering into a formal settlement agreement between you and your employer which fulfils certain legal requirements.
One of the most important conditions is that you must have had advice from a relevant independent adviser. Without this a settlement agreement will not be valid.
Under English law, you may resign from your position and treat yourself as having been dismissed by your employer, if your employer acts in a way that is deemed a fundamental breach of your contract.
Any attempt to exclude this covenant from a contract is null and void.
You are entitled to the benefit of a minimum standard of formal disciplinary procedure.
You must be given sufficient time to prepare for the interview. You should also be given an opportunity to appeal against the decision.
If you require any further advice or assistance, please contact us to arrange a meeting: on 0207 488 9947 or by email.
Please note we only undertake redundancy advice and advice on settlement agreements.