Home Employee Rights What you need to know about Redundancy Law

What you need to know about Redundancy Law

What you need to know about Redundancy Law

What is Redundancy Law?

Redundancy law is a fundamental employee right found in the United Kingdom’s labor law. If you are an employee in the United Kingdom and have been dismissed it is essential to review the terms of your termination. Once dismissed, your employer is required to transfer redundancy payments under the cover of your termination. This transfer, meaning the amount of payment, will be outlined in your employment contract and is based off variables attached to your employment. There is a large difference between being redundant and a fair dismissal. British labor law defines a fair dismissal as a termination where the employee committed a substantial wrong doing (an egregious violation against their employment contract). In this situation, the employee is served with a notice of dismissal before the termination where he or she is given a satisfactory explanation. 

In contrast, Redundancy law defines redundancy as the act where the employee is terminated either because a part of the business shuts down or the business is going through a downsizing regime and does not need the services of the said employee. Furthermore, redundancy may take place if the business is reorganizing their model and the said employee’s role simply becomes obsolete. In these scenarios, the employee is entitled to a payment for a set number of years; in essence, redundancy laws require the employer to pay the employee if they are made redundant either based on a full-time or part-time scale.

Specifics Associated with Redundancy Laws:

In addition to the payment plan described above, redundancy laws also say that a lump sum payment should be given to the employee depending on their respective weekly wage, the age band in which the employee falls and the complete years of his or her employment with the firm. Because of the money awarded based on redundancy laws, a number of employers will attempt to camouflage employee terminations. A common tactic undertaken by many organizations in the United Kingdom is to dismiss the employee on the grounds that the individual has committed an egregious violation of their respective employment contract. In these situations, it is highly recommended that the employee seek the aid of an employment solicitor, who will file a claim with a local employment tribunal. These courts of law will review the case and evaluate whether or not the company’s claim of a fair dismissal was warranted.