If your employer is planning on dismissing you on the grounds of redundancy, we recommend that you contact one of our solicitors for legal advice.
Even if you are satisfied that the redundancy is fair, your employer may want you to sign a compromise agreement to confirm your acceptance and your agreement not to bring a claim for unfair dismissal. You will need the advice of a qualified legal representative, such as a solicitor, for the compromise to be valid.
We set out below some legal advice relating to redundancy. However, we recommend that you contact one of our solicitors before taking any legal action.
What is redundancy?
A redundancy situation exists where:-
- an employer's business, or part of the business, has ceased to operate; and/or
- the business has moved to a different place; and/or
- the needs of the business for work of a particular type to be done has ceased or diminished.
Redundancy Procedures
Your employer must follow a set dismissal procedure before making a redundancy.
If you are at risk of redundancy, you are entitled to a written statement, explaining why you are being considered for redundancy. You should also have a meeting with your employer to discuss the proposed redundancy, as well as the opportunity to appeal.
Your employer must use selection criteria that are fair, objective and non-discriminatory. You should also be considered for alternative employment within your employer's business.
If your employer does not follow the proper procedures, any dismissal will be an automatically unfair dismissal and you may be entitled to compensation.
Redundancy pay
If you are made redundant, you should be entitled to redundancy pay. The amount of a statutory redundancy payment depends on:-
- how long you have been in employment; and
- you age (see below); and
- your weekly pay (see below).
Statutory redundancy pay is worked out as follows:-
- 1½ week's pay for each complete year of employment when the employee was aged between 41-64 inclusive
- 1 week's pay for each complete year of employment when they were aged between 22-40 inclusive
- ½ week's pay for each complete year of employment when they were aged between 18-21 inclusive.
Your contract may provide for redundancy payments at a higher rate. | 
